Question: Can I terminate a commercial lease early if my business is suffering loss?
Answer:Commercial or retail leases have a minimum time limit of 5 years including options to renew. If your business is suffering and you want to give up your lease before the date specified in your lease agreement the best option may be to assign the lease to someone else.
You can terminate a commercial lease by assigning the lease, meaning that the whole interest in the property and all rights afforded to the tenant through the lease agreement are given up and transferred to a new tenant.
You cannot terminate a retail lease early another way unless there is a specific clause in the lease contract that provides for early termination. The best thing to do is not to commit to a long-term lease if your business is just starting out, in case things go wrong.
Whether you are at the point of wanting to terminate a commercial lease, or are yet to sign a lease and are wondering how to give yourself the option to terminate early in case things do go wrong down the track, speak to a leasing lawyer who can advise you on your particular options.
