Getting Out of Commercial Leases
If you are trying to get out of commercial leases, you should consider the ramifications and these tips in advance. Commercial leases often last for a number of years, sometimes ten to twenty. Thus, changed circumstances may have put you in a position of wishing to get out of your lease. It is not an uncommon predicament.
One way that you can get out of your commercial lease is to get another party to complete the lease terms for you. If someone is interested in your space and willing to pay the remaining rents, this can be an excellent option. You can advertise to try to find a renter.
You will have to make sure your lease agreement does not include any provision limiting or prohibiting subleases before trying to sublease. Even if your lease agreement has such a term, it is possible to sublease with the permission of your landlord.
Negotiating with Your Landlord
If you want to get out of your lease and getting a sublessor is not an option, you may try to negotiate with your landlord. Sometimes you can buy out the remaining lease for a lesser fee. Also, if you are experiencing other financial troubles it may be worthwhile to discuss the situation with your landlord. A landlord is in the business of making money, so he will want to do whatever possible to make sure he gets paid for his property. If you face insolvency, he will be more motivated to find a new renter for the commercial space.
Because commercial real estate is governed by different law than residential real estate, it is possible your landlord will try to sue you for not completing your lease term. The law is not as generous to commercial tenants as it is to residential tenants. Depending on the structure of your business, you may be held personally liable for your commercial lease if you do not make sure to get any agreement modifying your lease in writing. Any new contract must be based on new consideration. Thus, your landlord must get something in return for agreeing to let you out of your lease, such as a fee.
Getting Legal Help
An attorney experienced in commercial real estate and lease law can help you figure out the best way to get out of your commercial lease. Contact an attorney to discuss your situation. An attorney can negotiate on your behalf with your landlord and in case of any legal proceedings, he will advocate for you in court.