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Loren
Loren, Lawyer
Category: Real Estate Law
Satisfied Customers: 34419
Experience:  30 years of real estate practice experience.
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I am reading about my companys commercial lease, texas, as

Customer Question

i am reading about my companys commercial lease
JA: Because laws vary from place to place, can you tell me what state the property is in?
Customer: texas
JA: Has any paperwork been filed?
Customer: as far as? we have a current lease, yes we would like to break the lease as we do not need the space anymore
JA: Anything else you want the lawyer to know before I connect you?
Customer: cost?
Submitted: 2 months ago.
Category: Real Estate Law
Expert:  Loren replied 2 months ago.

I am Loren, a licensed attorney for over 30 yrs. Thank you for your patience as I review the question. I will post my response shortly.

Expert:  Loren replied 2 months ago.

What is your question, my friend?

Customer: replied 2 months ago.
we are looking to break a commercial lease in texas. "I will check in first thing Monday on the downsize options – other than subleasing, there isn’t much else we can do. I can explore the buyout option, but there will likely not be much of a discount since there’s not a substantial amount of term remaining."this is the answer we have received to our questions.
Customer: replied 2 months ago.
i want to look at buying out the lease we have 22 months remaining.
Expert:  Loren replied 2 months ago.

Thank you for the additional information. I am sorry to hear of your dilemma. I realize how frustrating this is for you and I hope to provide you information which is accurate and useful, even though it may not be the news you were hoping to get.

Unfortunately, your lease is binding and enforceable for the lease term stated in the contract. Therefore, without a provision in the lease providing a right to early termination or landlord breach (constituting constructive eviction), you are liable for the payment of rent and other obligations specified in the agreement until the end of the lease term or until a new tenant takes possession and begins paying rent on the space.

So, as you appear to be aware, you have a few options. First, you can try to find a new tenant to either be a subtenant or assignee of your lease.

Next you can try to negotiate a lump-sum settlement of the remaining balance on the lease.

Finally, and most risky, you can just move out without a new tenant or settlement, and hope the landlord can relet the space quickly.

The last option puts you in breach of the lease and subject to damages if the landlord sues and prevails.

With regard to the first two options, if you find a new tenant or reach a settlement with the landlord, it is most important that the terms be in writing and signed by the parties so that it is enforceable in court.

I am sorry. I wish I could tell you otherwise, but I do not want to see you heading off in the wrong direction.

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Customer: replied 2 months ago.
are we responsible for just the remainder of the base lease?
Expert:  Loren replied 2 months ago.

Thank you for following up.

Yes, just the obligations for the remainder of the lease term, assuming you have not missed any automatic renewal opt out notice deadlines.

Customer: replied 2 months ago.
our base rent 3200 a month and our operating cost through the lease is 2800. If we break the lease are we liable for both or just the base rent?
Expert:  Loren replied 2 months ago.

You would be liable for all rent, base and additional. The operating costs are typically defined as additional rent.

Expert:  Loren replied 2 months ago.

Did you have further questions? Have I answered your question?