What are the options at a lease break date?
When entering into a commercial lease, you and your landlord might decide to include a commercial lease break clause within your agreement. This clause provides you with some fantastic flexibility in terms of having the opportunity to end your lease early, if you wish.
What is a commercial lease break clause?
A commercial lease break clause is a provision in your commercial lease that provides you with the option of ending your lease early. A break clause usually occurs at an agreed point in your lease, such as half way through it.
Ending a commercial lease early
You might choose to end your lease early due to growth and the need for more space, or equally, you might need to end your commercial lease early if your business hasn’t been as successful as you had hoped or you’ve reduced your staffing numbers and now have far more space than you require.
Given that you meet the requirements of your commercial lease break clause, you would have the opportunity to terminate your lease early. The commercial tenant is usually given the power to end a commercial lease early, but a mutual break clause gives both the landlord and tenant the ability to do so.
Prior to your commercial lease break date, you can decide to either continue with your lease, in which case you will be obligated to see your lease out to full term once the lease break date has passed, or you can choose to end your lease early. So, where’s your head at?
If you’re experiencing difficulties with the commercial space you are currently leasing, it could be worth considering a refurbishment of the space to make valuable improvements and optimise it for your usage. We can help you make the decision that make sense for you. We’re always happy to offer advice!
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