Did You Know? A Major Retailer's Property Controls Are Changing
- ClearView Insider
- Jul 28
- 2 min read
Empire Company Limited, parent of Sobeys, has announced changes to how it will use restrictive covenants and exclusivity clauses across its Canadian grocery portfolio. The announcement reflects the Competition Bureau's ongoing focus on property controls and their role in commercial real estate.
Restrictive covenants and exclusivity clauses have long been established tools within commercial real estate. They help secure anchor tenants, support major capital investments, influence tenant mix and contribute to the viability of retail developments. As Canada's Competition Bureau continues to examine the use of property controls, landlords, developers, investors and retailers are taking a fresh look at how these provisions are used in future transactions.
For the commercial real estate industry, the announcement highlights a broader shift in market practice. Lease negotiations may include closer inspection of exclusivity provisions, while acquisitions and redevelopment opportunities may involve more detailed due diligence regarding existing property controls. As older restrictions are modified or removed, some properties could also see new opportunities for repositioning, redevelopment or additional retail competition.
Empire's announcement may prove to be an important milestone, not because property controls are disappearing, but because expectations surrounding their use continue to evolve. For commercial real estate professionals, it serves as another reminder that leasing strategy, investment decisions and development planning continue to adapt alongside changes in the broader regulatory environment.
Read the full announcement from Empire Company Limited: Property Controls | EmpireCo
Source: Empire Company Limited. Property Controls. July 21, 2026. Competition Bureau Canada. Competitor Property Controls and the Competition Act. June 4, 2025. Dentons Canada LLP. The Competition Bureau's Recent Focus on Real Estate. July 10, 2025. Davies Ward Phillips & Vineberg LLP. Canadian Competition Bureau's Final Guidance Discourages Property Controls. July 21, 2025.