Dictionary of Real Estate Terms: reverse radius clause
reverse radius clause
in a shopping center tenant's lease, a clause preventing the shopping center owner from buying or developing a competing mall nearby.
Example: A department store, Senney's, was concerned that if Simons built another mall nearby, it would dilute traffic, but it would be too costly for Senney's to open another store there. So Senney's insisted on a reverse radius clause in the lease, preventing Simons from developing another mall within five miles.
