Breaking a Commercial Lease in Arizona

Signing a long-term commercial lease can be an intimidating process.  Most businesses need a place to operate so it might be tempting to lease the first suitable office you find.  However, you might not be sure if the location will work for your business or if the business will succeed.  There is always risk with starting a business and a long-term commercial lease is one of those risks.  You generally get a better monthly lease price if you are willing to commit to a long-term deal.

Circumstances can change and your leased space might no longer be the most suitable for your business.  Even if the business is doing well, there are risks to a long-term lease.  You can never be sure that a specific office will provide you enough room to grow and expand.  Thus, there are many legitimate reasons for breaking a commercial lease in Arizona.  The business may be doing so well that you need to expand into a bigger office, or you might find out the business did not work out and you will need to break the commercial lease because the business is closing.

Review Your Lease Agreement

If you are considering breaking your commercial lease in Arizona, the first step is to review your lease agreement.  You might be surprised to find that the terms for an early release are more affordable or agreeable than you expected.  It is also possible to find that certain conditions in the building or actions by your landlord have presented you an opportunity to seek an early release from the lease without penalty.  This is certainly something you will need to review with an experienced real estate attorney in Arizona.  Our firm can help you review the lease and decide on the best course of action for your unique situation.

How to Work with Your Landlord in Arizona

Whatever conditions have created a need to break your commercial lease in Arizona, you will generally want to start the process with an honest conversation with your landlord.  It is certainly common to feel intimidated by the prospect of a negotiation with your landlord over how to handle the need to move out of your leased space.  It is a good idea to consult with an experienced real estate attorney before starting this negotiation, but you will often find that you have some leverage in the negotiation.  Typically, a landlord will just want to avoid having a vacant space in their building.

If you can help them find a reasonable solution without the need for an extended legal process, then they will likely be amenable.  The landlord might be open to allowing you to sublet the space or simply revising your lease to shorten the length while giving them some time to find a new tenant.  You might be able to negotiate a smaller penalty for breaking the lease if you are willing to pay rent until they find a new tenant.  It is also important to make it clear to your landlord that you are willing to show the space while you are still there and that you will agree to leave the office space in clean and rentable condition.

MacQueen & Gottlieb has significant experience with breaking commercial lease agreements in Arizona and we can help review your lease agreement to decide on the best course of action.  Our attorneys can represent you throughout the entire process and assist with all negotiations if needed.  Contact us today at (602) 533-2840 to schedule an initial consultation.