When you signed the lease for your commercial space, you may have thought you’d found the perfect location for your business. However, things change. Whether you need more space, less space or you just found a much better location, you want to move as soon as possible.
However, if you’ve still got months or longer left on your lease, what can you do? Is there any way to get out of it without paying a hefty price? It depends.
Is there an exit clause?
Don’t assume you remember what the lease says. Review the terms of your lease with your business lawyer. If there is an exit clause in the lease, determine whether you can afford its terms and responsibilities. Can you afford to break your lease?
Negotiate with your landlord
If there’s no exit clause, assess your options. Has the price of commercial space increased since you signed the lease? If so, your landlord may be happy to negotiate a buy-out if it will give them the chance to lease the space to a new tenant at a higher price. The less time you have left on your lease, the greater your chances of going this route.
Has your landlord neglected to live up to their responsibilities as detailed in the lease? If so, they may be willing to let you out of the lease early rather than risk legal action.
Can you sublet the space?
If your lease agreement allows you to sublet your space, this may be an option if getting out of your lease early would be too expensive. However, that means finding a responsible party to sublet the space, since you’ll still be responsible for it for as long as the lease is in your name.
Remember that just about everything is negotiable. It’s best not to approach your landlord until you’ve thoroughly reviewed your lease, done some due diligence on the market conditions and determined what you want to propose. We help businesses with new and existing commercial leases. Contact us to learn about your options.