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If a strong retail tenant has either a performance kickout right or a reduced rent right, promptly audit the tenant's gross sales records if it tells you that it will exercise its right, advises Dallas attorney T. Andrew Dow. With a performance kickout right, the tenant can terminate its lease if its gross sales fall below or don't reach a minimum sales threshold during a set time period. With a reduced rent right, the tenant can reduce its rent under similar circumstances.
