Terminate a Commercial Lease │ Curtis & Casteel Law Group

Most businesses here in Lynnwood don’t actually own the building they’re operating out of. Most shop buildings are rented much the same way tenants rent out an apartment. There are, however, circumstances in which business owners may want to terminate a commercial lease early. How can they do this without being in breach of contract? Our business law firm has a few ideas.

Review Your Clause

Go over your contract and look for a bailout or co-tenancy clause.

Bailout Clause: This allows you to terminate your contract if revenue does not meet a pre-established threshold.

Co-Tenancy Clause: This enables you to terminate the contract if another commercial tenant leaves. This may adversely affect your own business due to sharing the same customers with the other tenant.

Ask for an Early Release

You can simply request for an early release. The landlord may agree to it, especially if the building is located in a high traffic area. High-traffic locations are in high demand, and the landlord should easily be able to rent it to a new tenant, perhaps even at a higher rate.

Assign Your Lease or Sublease the Space

When you assign your lease, you are transferring the lease to a new renter. You are, however, still considered the original tenant, and the lease may contain certain provisions you are responsible for.

Alternatively, you can sublease the space. This allows a new business to come in and use the space. The new business will be responsible for rent payment, though you may be held liable when payments are missed.

We’ll Help You Get Out of Your Commercial Lease

In some cases, you may need to bring in an attorney. Contact Curtis & Casteel Law Group if this is the situation you find yourself in. Our real estate team are versed in all legal matters relating to property rental and ownership. We have helped dozens of Lynnwood businesses legally terminate a commercial lease.

Edited by Justin Vorhees