Permitted use restriction

A permitted use restriction defines the scope of business activities allowed to operate in a property, specified in lease agreements or property title documentation. For example, a retail unit may be restricted to retail trade only, excluding office or food service use.

Such restrictions typically reflect the property owner's or landlord's strategic intention to control tenant mix and prevent conflicting operations. In shopping centers or office complexes, they preserve retail diversity and maintain brand positioning. Breach of use restrictions can result in lease termination or financial penalties, making it critical to clarify permitted activities before signing or purchasing.