How to Terminate a Commercial Lease Agreement

Leasing the business space is generally preferred by so many firms. As the lease is for temporary, the firm can be relocated if necessary. This commercial lease is ruled by an agreement between the landlord and the lessee. As a lessee, there may be many reasons for terminating your commercial lease. Unfortunately, the very common reason is the failure or not successfully running your business. If you wish to terminate your agreement for any reason, you should know how to terminate a commercial lease agreement.

Here are some steps which can guide you in terminating your lease agreement.

Find out for the favorable clause in the agreement

First review your commercial lease agreement. In that, try to look for the provisions that permit you to terminate the lease or to allow the lease. Each lease differs, usually, an assignment clause or termination clause can be negotiated in the lease before signing the agreement.

Follow the agreement

Just follow the conditions which are present in the lease agreement. If there is any required notice, provide it to the owner. If there are any silent terms in the agreement, continue following those steps.


Contact your owner and organize a meeting in order to discuss the possible options. Try to negotiate with your owner to get out of your commercial lease as early as possible. Ask your owner whether he/she will take the novation into consideration if you are able to find out a new business to just take over that space. A novation can help you in relieving from this lease agreement.


Another option is to give some money to the landlord to get out of the agreement. An owner may wish to take a lesser lump of money and accept to end the lease agreement.

Category: Sample Agreements

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