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Landlord Recapture Rights
Practical Law Glossary Item 6-503-3974 (Approx. 2 pages)
Glossary
Landlord Recapture Rights
A landlord's right to terminate the entire lease or the tenant's leasehold interest for only a portion of the premises.
The landlord's right to recapture is usually a negotiated right. Depending on the negotiated terms of each lease, a tenant's request for the landlord's consent to an assignment or sublease is the most common event that may trigger the landlord's right to recapture all or a portion of the premises.
A recapture right allows the landlord to:
- Maintain complete control over the composition of the tenant mix in its building.
- Derive the exclusive benefit of any upswing in market conditions by terminating the original lease and entering into a new lease at fair market rental value.