Leasing Mall Space to Medical Clinic Violates Landlord’s Duty to Operate Retail Establishment

What Happened: A shopping center lease gave a fabric and crafting suppliers tenant the right to pay a lower substitute rent if the landlord violated its obligation to run the center as a “first-class retail project.” The problem began when the landlord leased space in the center to an addiction counseling provider “solely for the purpose of conducting the business of a medical addiction treatment clinic.” You’re in breach, the tenant notified the landlord, and we reserve our right to pay the substitute rent and terminate the lease early for as