Question: Can I terminate a retail lease early?Answer:
The length of a lease is set out in the lease agreement. The early termination of a retail lease is possible, depending on whether it is the landlord or the tenant who wants the lease to end early. A landlord might want to renovate the premises or the lessee might be losing money and struggling to keep up with rent due to a failing business.
A landlord might include a clause in the lease agreement, which includes the right to terminate a retail lease early. Depending on the tenant’s wishes, this may be something that is preferable, but if it is not, you would need to speak to the landlord to have it removed before the agreement is signed. The last thing you want is to be forced to relocate your business if the landlord decides he wants to terminate the lease early.
The landlord retains the right to terminate the lease and sue for damages if the tenant breaches any of the terms in the lease agreement.
A tenant is bound by the terms in the lease agreement that includes the duration of the lease. The best thing to do if a tenant wishes to leave a lease agreement early is to assign the lease to someone else. Assignment of a lease means that you are giving up your rights in relation to the lease and passing them onto another person, with the landlord’s consent. In order to assign the lease to another you will need a leasing lawyer to help prepare the paperwork.
For more details on how to terminate a retail lease early, see our article!