If you need to terminate your commercial lease early due to business reasons, or if you simply think that it would be a better idea to modify or end your agreement, you may wish to find a lawyer and keep the following information in mind.
First of all, unless certain clauses and provisions are included in the commercial lease, you cannot easily terminate it before its time is up. These clauses may include:
Additionally, one party may be able to terminate your lease early if the other significantly violates the lease agreement terms. A lawyer can help you determine if this may be the case.
Finally, both parties may agree to modify the length or terms of the lease at any time.
If you terminate your lease early, you will:
In certain circumstances, this can be quite advantageous for your business or commercial endeavors. If you can no longer afford your commercial space or if you need to move elsewhere, early commercial lease termination could be the best option for you.
While there are significant advantages to an early commercial lease termination, there are also significant risks. Unless you take all the proper legal precautions, you may be forced to meet the obligations of your lease, even if your business fails or the space is vacated. Furthermore, if you are found to be in breach of contract, you may be liable for significant damages, including but not limited to the entire obligation of the lease to be paid in full immediately, punitive damages and attorney's fees.
Laws related to commercial real estate vary according to your state and jurisdiction as well as the terms of your particular lease. If you want definitive answers about commercial lease termination, you should consult with a professional real estate attorney. An attorney can provide legal guidance and useful assistance in all matters related to your agreement and its potential termination.
Last Modified: 05-01-2018 02:41 AM PDTLaw Library Disclaimer
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