What Is a Relocation Clause?

Often at the bottom of an office lease, you will find a “relocation clause.” A relocation clause gives your landlord the right to move your company to a different location within your office building or complex if a larger tenant requests your space. This typically happens if your company rents a partial floor that is on one of many floors occupied by a larger tenant. If the larger tenant wants to expand, it makes sense for them to take over the rest of the floor.

While your company probably won’t be able to have the relocation clause removed from its lease, it can request three contingencies to the clause. First, ask to have it spelled out that your landlord pays for all moving and renovation costs associated with a relocation move. Second, insist upon the same rent, views, office structure, quality of furnishings, and so on in the new space. If your company’s current quarters include a park view, you don’t want to be relocated to a location overlooking the parking lot. Finally, require that your landlord give your company at least a month’s notice of the need to relocate.