The commercial real estate industry isn’t as heavily regulated as the residential one. This is why San Antonio business owners who seek out office space often find that their leases tend to last significantly longer than residential ones. If the thought of being committed to a particular office long-term makes you feel uncomfortable, then you’ll be happy to learn that there are lawful options for getting out of your lease without defaulting on it.
There are two go-to options that you may want to consider if you’re unable or uninterested in continuing your commercial lease: You can assign your lease to someone else or sublet. You’ll need to review your contract to see what it says about either one of these options.
To assign your lease
You’ll need to identify a prospective tenant that is willing to take over your existing contract is you plan to assign your lease to someone. That entity will need to be capable of paying the contracted rate for the remainder of your lease. They’ll also have to meet any special conditions detailed in your contract. Your landlord will likely hold you accountable for complying with the lease if your replacement tenant fails to do so.
To sublet your lease
When you sublet, the new renter becomes your tenant. Your tenant will sign a contract agreeing to pay you rent, and you’ll continue paying your landlord as previously agreed.
Some commercial landlords may not allow you to do this, especially if it allows you to command a higher rent than what you originally agreed to pay them. You’ll want to closely review your contract to see what it says should happen with any profit you make off the rent.
Subletting and assigning your lease are two of many different options for breaking your lease without defaulting on it. A commercial real estate attorney may help when reviewing your Texas contract.