A cross-default provision is a clause linking multiple leases or agreements such that a default under one automatically triggers default under the others, often used when a tenant has multiple locations with the same landlord or portfolio.
Cross-default provisions matter most when one tenant leases several locations or when properties are bundled in one transaction. If the tenant falls behind on one lease, the landlord may be able to declare default on all of them, which gives the landlord more leverage. The clause can also complicate the sale of a single property out of a larger group. Review the clause and any related master lease before closing so you understand how the properties are tied together.