New Launch - India Real Estate Report 2026.

What is a Recapture Clause?

Recapture Clause gives landlord right to terminate lease early and retake property if tenant fails to meet specified conditions like minimum sales volume or sublease, allowing landlord to reclaim property for reletting or redevelopment.

How It Works

  • Tenant must meet minimum sales requirements
  • Landlord can terminate if sales fall short
  • Usually 30-60 days notice required
  • Landlord retakes possession after termination

Common Uses

  • Retail leases with sales thresholds
  • Shopping center anchor tenant agreements
  • Sublease recapture when tenant sublets
  • Percentage rent agreements

Recapture clauses give landlords right to terminate leases early and retake property if tenants fail meeting conditions like minimum sales allowing landlords to reclaim for reletting.

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