How To Break Commercial Lease Agreement

If you rent a sales office, you will have to ask yourself at some point if you want to renew your lease or transfer offices. A future lease… Read more Let`s go on some of the reasons why it might be time to inform your landlord and terminate your current office lease. As with an assignment, subletting your lease allows you to move in with a new client who can occupy either part or all the premises. You must also obtain permission from your landlord if you wish to sublet some or all of your premises. Breaking an office lease doesn`t have to be difficult and expensive. Preparation and information will help flatten the process, but since all commercial tenants would prefer not to go through the process, here are some tips for not breaking a lease in the future: «The tenant can only terminate prematurely after the first five years of the lease.» That`s why it`s important to understand how to break a lease for a commercial property. For example, if you rent offices in an emerging neighbourhood with low empty spaces, it may be in your landlord`s best interest to evacuate the offices so that they can increase the rent of the new commercial tenant. However, if there is a high percentage of open office space and the quick search for a new tenant does not look promising, you will probably be held more financially responsible. If you have included an «expiration clause» in the lease, you can use it in these situations to terminate the lease. However, if the tenant can challenge this decision in court, he can stay in the unit.

The key to all these options is trading. While it is best to negotiate the terms of your office rental with the landlord before signing, you will have no luck if you do not predict that your lease will end prematurely when you have entered into your lease. Bring as much information as possible to the negotiating table and show a willingness to compromise, and there is a good chance that you will be able to reach an agreement with your landlord. If there is no break clause and the owner is not interested in abandoning the lease, you can transfer it to a third party. You should find yourself a new tenant – a tenant who meets the landlord`s requirements, whose agreement will most likely be required before the lease can be concluded.