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Need to get out of your commercial lease?

Does your lease have any of these “escape” clauses?

  1. After a certain period (e.g., one year), an early termination clause could let you off the hook, but these clauses also usually requires some additional payment, such as rent for one or several months.

  2. Do you have a co-tenancy clause? For example, if your store is in a mall and the anchor store closes, you may be entitled to the cancellation of your lease.

  3. If the landlord begins leasing space to a competitor, and your lease has an exclusive use clause, that clause can be your way out.

  4. If your lease agreement specifies a pre-set level of sales for you to achieve, and sales fall short, you could invoke a bailout.

  5. If you have a sublet or assignment clause, you could find a new tenant.

#landlord #leasing #tenant

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