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what is a co- tenancy Clause a common clause in retail lease contracts that allows tenants to get a reduction in rent from landlords if key tenants or a certain number of tenants leave the space a large or key tenant Anor tenant is a big draw for traffic especially in malls and is often one of the major reasons a tenant chooses locate in a specific Mall a co-tenancy clause provides the tenant with some form of protection in the form of reduced rent to compensate for loss of traffic