What does the use clause in a lease specify?

The use clause in a lease is a critical component that outlines how the leased space can be utilized. This clause delineates the permitted activities and purposes for which the property may be used, ensuring that the tenant understands and agrees to operate within specific boundaries set by the landlord. For example, a commercial lease might specify that the space can only be used for retail purposes, prohibiting activities such as manufacturing or residential occupancy.

By clearly defining these parameters, the use clause helps protect the interests of both parties. The landlord can ensure that the property is used in a way that aligns with the overall use of the building or complex, while the tenant gains assurance about their rights to use the space for their intended purposes. This clarity can prevent disputes over what constitutes acceptable use and safeguard the property’s value and suitability for future tenants.

In contrast, other aspects of the lease, such as occupancy rules, termination conditions, or rent calculation methods, are governed by different clauses in the lease agreement and do not fall under the use clause. This specificity makes the use clause especially important in defining the tenant's scope of operation within the leased premises.