Breaking a commercial lease is never easy, but sometimes it is a necessary step to be taken. Since a commercial real estate Corpus Christi lease agreement is a contractual obligation, both parties should understand the consequences, costs, and options for early termination before entering into a commercial lease.
However, if the signed agreement needs to end, learn about the process and the consequences of breaking a commercial lease. And also understand the ways to achieve the best outcome for everyone in this step-by-step guide.
Calculate the cost to know its worth
The most important thing to do before entering into any decided course of action in regards to how to break commercial property’s lease is to determine whether or not the contract you’re considering terminating will be worth it. Start by calculating the cost involved. If you are in breach of your current commercial lease, you will likely be liable for certain costs. You should carefully review your lease before taking any action to determine exactly what you may be liable for. If decided that the benefits outweigh the costs, then continue reading this guide to learn how to break a commercial lease.
Study your contract
The second important thing after deciding that you’d like to terminate the lease is to find the details of your agreement in regards to breaking a commercial lease. What options are available? Who has what responsibilities? What will happen if one or both parties don’t follow the guidelines? Make sure you have a good understanding of the contract before going any further. It is always better to enlist the help of realtors in Corpus Christi Tx or an attorney before taking any action with respect to breaking a commercial lease. They will be able to advise you of your rights under your lease and walk you through the process.
Approach the Landlord or Tenant
Once you’ve read your lease agreement and understand what needs to do to terminate, approach whoever is on the other side of the contract. It’s possible that there was a miscommunication about what will happen, or that certain expectations weren’t expressed, so find out what the other party’s thoughts are in an attempt to negotiate an agreement everyone can move forward with.
If possible, with the help of your real estate agent in Corpus Christi negotiate for agreeable terms for both party’s benefits. For example: if the landlord has already found a new tenant and wants you to continue paying rent until the new lease begins, they may also be willing to agree to terms that will allow you a few months of free rent in return for breaking the current contract. Remember, it can’t hurt to try!
It is important to document everything you do in regard to breaking your commercial lease. Keep a copy of your notice of intent and all correspondence with your landlord or his representative.
Collect your belongings
After reaching an agreeable agreement with whoever is on the other side of the contract, collect all your belongings. Remember to not just take the furniture. But also all boxes, files, and any other belonging that is in your possession.
Learn here to know how to get flexibility in long-term commercial real estate leases.
A commercial lease is a legal contract between the tenant and the landlord. So breaking one may not be as simple as you think. If your office space for the lease deed needs to be called off for some reason, it is very important that the proper steps are taken to ensure there are no long-term repercussions for either party. It’s also necessary to remain professional throughout the process, as this will reflect well on both parties and help the process move forward smoothly. Before attempting to break your commercial lease, consult real estate agents to make sure you do it correctly.