The permitted use determines the activities that the tenant may carry out on the leased premises. It is therefore an important provision of the commercial lease.
The clause can be worded generally or, conversely, precisely limit the permitted activities. For example, a lease may allow the operation of a retail business while specifying the nature of the products or services that may be offered there.
A definition that is too restrictive may prevent the tenant from modifying or developing their business activities during the term of the lease. Conversely, a very broad definition may be less advantageous for the landlord when they wish to control the activities carried out in their building or grant exclusivity to another tenant.
A tenant planning to conduct multiple activities should therefore ensure that they are all included in the permitted uses. They should also verify whether the lease allows them to change their activities during the lease term.
The fact that an activity is permitted by the lease does not, however, mean that it is allowed under applicable regulations. The tenant should, in particular, verify municipal zoning as well as the permits, licenses, and other authorizations required to operate their business.
The lease may also determine which party is responsible for carrying out these checks or obtaining certain authorizations.
A clear and sufficiently appropriate description of the permitted use therefore helps to prevent a tenant from signing a lease for premises in which he cannot carry out all of the activities he intends to carry out.