Imagine this scenario: You’re a tenant leasing an industrial or commercial real estate property. For any number of reasons, the space is no longer working for your business – maybe you need to downsize or expand, or a big economic swing means your rent is not a market rent anymore. Maybe you’re relocating out of the area or you just need a different locale. Whatever your issue, you’re stuck because your lease isn’t up for a significant period. You’re just going to have to wait it out until the lease term ends and you can find something more suitable, right?
Not necessarily.
If your needs have changed before your industrial or commercial lease has come to an end, you may have options beyond waiting it out. Your experienced industrial real estate agent should review your original lease terms and any renewal amendments to check for clauses in the agreement that might allow for potential negotiating points. These might include clauses relating to expansion rights, early termination, possible downsizing options, lease buy-out options or sub-leasing rights. Any of these could be the solution you need, or at least provide sufficient leverage to allow your experienced agent to go to bat for you with your landlord’s agents.
What if your lease has none of these standard clauses, nor anything that will prove useful? In that case, your agent can still attempt to negotiate an early lease termination with your landlord. Additionally, your agent could potentially arrange fort a substitute tenant to take over your space and provide a longer term income stream for the landlord that would release you from your current obligation. At the very least, he can begin lining up alternative properties well prior to the ending of your lease terms so you can move seamlessly into a more appropriate space. Either way, an experienced and resourceful agent is your best bet for a timely solution to your problems.
If you need an agent for a similar issue, we welcome the opportunity to speak with you.
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