LEASE CLAUSES

Check what your lease lets you do in the space

A permitted use clause says what the premises may be used for, and anything outside it can put the tenant in breach. A narrow use can block a new product line, a change of business or a buyer who wants to take over the lease. Ask Search+ "What does this lease allow the premises to be used for?" and the answer cites the use clause and the restrictions that sit around it.

Use clauses matter most in retail and office leases, but residential leases have their own version, often limiting the home to residential use.

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Last updated October 2026

How to read the use clause with Search+

  1. Upload the lease and the property rules

    Use restrictions can be spread across the lease, a rules and regulations exhibit and, in shopping centers, a list of exclusives granted to other tenants. Upload each of these into a single workspace, scanned exhibits included.

  2. Ask about your actual plans

    Describe what you want to do, such as adding food service or running classes, and ask whether the use clause allows it. Then ask separately about prohibited uses, exclusives and opening hours.

  3. Look for knock-on effects

    Open the cited clause, then ask how the use clause affects assignment and subletting. A buyer or subtenant usually has to fit the permitted use, so a narrow clause can limit your exit options.

Questions to ask about permitted use

Scope

What exactly does the permitted use clause allow, and is it limited to a named trade or brand?

A new activity

Would adding online order pickup or a small cafe area fall within the permitted use?

Prohibited uses

Which uses does the lease or the rules exhibit expressly prohibit at this property?

Exclusives

Are there exclusive use rights granted to me or to other tenants that limit what I can sell?

Operating covenant

Does the lease require me to stay open and operating, and during what hours?

Home use

Does this residential lease allow me to run a small business from the home?

What to look for in a use clause

The use clause is short, but it connects to many others. Read it with the clauses that depend on it.

Narrow or broad wording

Wording ranges from a single named trade to "any lawful use". Narrow wording protects the landlord's tenant mix; broad wording gives the tenant room to change. Note any words such as "and for no other purpose".

Exclusive use rights

In multi-tenant retail, a landlord may promise one tenant that no other tenant will sell certain goods. Those promises can restrict your use even when your own clause looks broad, so ask about exclusives granted to others.

Compliance with laws and zoning

A lease permitting a use does not guarantee that zoning, licensing or building rules allow it. Many leases put the burden of compliance on the tenant. Check local requirements separately.

Operating duties and hours

Some leases add an operating covenant requiring the tenant to stay open during set hours. Read it with the use clause, because closing or changing the business can then be a breach.

Workspace instructions for your plans

Workspace Context lets you record your intended use once, such as "we plan to add a training room", and Search+ applies it to every question in that workspace.

Use clause wording you may see, and what to ask

Wording you may seeWhat it usually signalsA follow-up question
"for the sole purpose of"A narrow permitted useDoes this wording allow related or ancillary activities?
"and for no other purpose"Anything else needs consentHow do I ask the landlord to widen the use?
"any lawful use"A broad permitted useAre there other clauses that narrow it, such as exclusives?
"exclusive" or "exclusive use"A protected category of tradeWhat goods or services are reserved, and to whom?
"continuously operate"An operating covenantWhat hours and days must I stay open?
"residential purposes only"A residential use limitDoes the lease allow any home office or business use?

What is a permitted use clause?

A permitted use clause is the term of a lease that defines the purposes for which the tenant may occupy and use the premises. Using the space for anything outside that definition, without the landlord's consent, is usually a breach of the lease.

It is not the same as an exclusive use clause, which stops the landlord letting nearby space to a competitor, and it is separate from zoning, which is set by local government rather than by the lease.

Permitted use questions

Can Search+ tell me if my business plan fits the use clause?
It can show you what the clause says. Describe your plan and ask whether the permitted use covers it. The answer cites the wording; whether your plan fits is a judgment to make with the landlord or an adviser.
Will it find use restrictions outside the main clause?
Ask across the whole workspace about prohibited uses, exclusives and rules. Restrictions in exhibits or amendments come back with a citation to the document they are in.
Does it check exclusives granted to other tenants?
Only if those exclusives are written into a document you have uploaded. Many leases attach a list of existing exclusives as an exhibit; ask about it by name once it is in the workspace.
Can it show how the use clause affects subletting?
Ask whether a subtenant or assignee must keep to the permitted use. The answer cites both the use clause and the transfer clause, so you can read how they work together.
Are the answers always accurate?
Not in every case. AI answers can be incomplete or wrong, which is why each one links to the supporting excerpt. Read the cited use wording before you change how you run the space.
Does Search+ say whether my planned use is lawful?
No. Search+ helps you read the lease, and its answers are not legal advice. Whether a use is allowed can turn on zoning and licensing as well as the lease, so confirm with a lawyer and the relevant local authority.

Make sure the lease fits the business you plan to run

Start a workspace, upload the lease and its rules, and ask what the space may be used for.

Start a workspace