Although a commercial lease is a legally binding contract, you might find yourself in a situation when you need to terminate it before it ends.
A typical commercial lease agreement is a complex legal document usually drafted and negotiated by commercial lawyers. You’d expect both parties make it hard for the other party to end the lease early.
This is why we always recommend to consult a commercial lawyer before going ahead with an attempt to negotiate a Commercial Lease Termination Agreement with the other party – consequences of doing it wrong may hurt your business financially and even bring legal action against you.
If you have to terminate your commercial lease agreement, you might be able to do it when your situation meets one of these conditions:
If you decide to terminate a commercial lease agreement early, you’ll need to:
No matter what the situation is when you want to end your commercial lease agreement early, it’s only prudent for a responsible business owner to consult a commercial lawyer before taking even the first step.
Terminating a commercial lease may be an expensive option if you don’t have valid reasons to end it early.
For example, if you’re a tenant, you might still be liable for rent obligations until the lease ends or the landlord finds new tenants.
The landlord might also have the right to charge you advertising costs associated with finding a new tenant or real estate agent’s fees.
However, in our experience, it’s possible to find a compromise and a reasonable solution to terminate a commercial lease early armed with sound legal advice to achieve a favourable outcome for your business.