Radius Restriction
A radius restriction is a lease provision prohibiting a tenant from opening competing business locations within a defined geographic radius of the leased premises — typically for a stated period covering the original lease term and sometimes a subsequent restriction period.
Radius restrictions protect the landlord and the leased location's economics by preventing the tenant from cannibalizing the leased store with a nearby competing location. They are standard in retail leases — particularly for credit chains where the tenant has the resources to open multiple locations in close proximity. The negotiation typically focuses on radius size and whether common ownership exceptions apply.
Typical Radius Restriction Terms
Geographic radius: 1–5 miles for urban locations, 5–10 miles for suburban locations. Duration: typically the original lease term plus 1–3 years post-expiration. Scope: applies to the tenant's named trade name and any affiliated entity; applies to new openings; sometimes applies to acquisitions of competing existing locations. Carve-outs: common ownership exceptions (existing locations grandfathered), franchise vs corporate distinction in some leases.
Why Radius Restrictions Matter
A tenant that opens a second location within 2 miles of the leased premises typically cannibalizes 15–25% of the original location's sales. For a percentage-rent lease, this directly reduces landlord rent. For a base-rent lease, it reduces tenant ability to renew and increases risk of go-dark or kick-out scenarios. Radius restrictions are landlord protection against tenant-driven self-cannibalization.
Common Negotiating Issues
Existing-location carve-outs: tenant wants existing nearby locations grandfathered; landlord wants no carve-outs. Affiliate definition: tenant wants narrow affiliate (only common control entities); landlord wants broad affiliate (any related entity). Distance measurement: as the crow flies or driving distance. New format definitions: smaller-format stores or different brand names typically negotiated as outside the radius restriction.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39+ years of experience closing commercial real estate transactions across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your Radius Restriction Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years of closed Florida CRE transactions with proprietary AI-powered analytics via REOMind.ai — 96% valuation accuracy, 89% workflow automation, and 35-day average disposition timelines vs. the 120-day industry standard. Backed by Linton Global's institutional platform, 500+ active lender relationships, and 15,000+ accredited investors, the result is Wall Street access delivered with the attention of a local advisor.
Frequently Asked Questions
What is a radius restriction in a commercial lease?
A provision prohibiting a tenant from opening competing business locations within a defined geographic radius of the leased premises, typically for the lease term and sometimes a subsequent restriction period.
What is a typical radius?
1–5 miles for urban locations, 5–10 miles for suburban locations, sometimes larger for rural locations. The radius reflects the actual market draw area of the tenant's business — restaurants typically have small radii, big-box retailers larger.
Do radius restrictions apply to franchisees?
Depends on the lease. Some restrict only corporate-owned locations; some restrict franchisees as well. The franchisee question is heavily negotiated for franchise-system tenants because the tenant may not have full control over franchisee site selection.
Are existing locations grandfathered?
Usually yes for existing tenant-owned locations as of lease signing. The negotiation focuses on what happens with closed locations that may be reopened, locations acquired through M&A, and new format locations under different brand names.
Article Summary
Radius Restriction is a foundational commercial real estate concept that Florida investors, owners, and tenants encounter routinely. A radius restriction is a lease provision prohibiting a tenant from opening competing business locations within a defined geographic radius of the leased premises — typically for a stated period covering the original lease term and sometimes a subsequent restriction period. Michael R. Linton at Linton Global Solutions applies Radius Restriction to every Florida CRE transaction across multifamily, office, industrial, retail, hotels, NNN, distressed, and 1031 exchange execution — backed by 39 years of closed deal experience and REOMind.ai-powered analytics.
Key Takeaways
- ✓A radius restriction is a lease provision prohibiting a tenant from opening competing business locations within a defined geographic radius of the leased premises — typically for a stated period covering the original lease term and sometimes a subsequent restriction period.
- ✓Radius Restriction is relevant across virtually every Florida commercial real estate asset class.
- ✓Florida-specific considerations — insurance, no state income tax, judicial foreclosure, hurricane risk — affect application.
- ✓Michael R. Linton (FL Broker BK703722) has 39 years of Florida CRE transaction experience including this concept.
- ✓Linton Global Solutions combines local market expertise with REOMind.ai's 96% valuation accuracy.
- ✓For deal-specific application, contact Michael directly at (312) 612-1031.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Internal Revenue Service. "Tax Information for Real Estate Investors." IRS, https://www.irs.gov/. Accessed Jun 13, 2026.
- Florida Department of Business and Professional Regulation. "Florida Real Estate Commission." Florida DBPR, https://www.myfloridalicense.com/. Accessed Jun 13, 2026.
- NAIOP Commercial Real Estate Development Association. "NAIOP Research." NAIOP, https://www.naiop.org/. Accessed Jun 13, 2026.
- Urban Land Institute. "ULI Research Library." ULI, https://americas.uli.org/research/. Accessed Jun 13, 2026.
- Mortgage Bankers Association. "Commercial & Multifamily Research." MBA, https://www.mba.org/. Accessed Jun 13, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.