NY Commercial Lease - Can I opt out?
Question Details: I entered into a lease on 1993. The rent is getting too burdensome to pay. I asked the landlord if he can lower some rent and I don't think he'll lower it enough for me to be able to pay. Do I have any leverage in negotiating for a lower rent. I have a link to the contract with names crossed out. It does not have an early termination clause, but I don't have the expertise in contracts and common laws to see what my situation is if I decide to opt out of the lease and close the store. I cannot pay rent until end of lease. Lease was signed with my name as a party to the lease. Thank you
Real Estate Law Answers
If there's nothing in the contract that says otherwise, you're obligated for the entire term of the lease, no matter what, and if you signed it as an individual, that means the landlord can come after anything you own, once he gets a judgment for whatever isn't paid. Your only way to avoid paying that might well be filing for bankruptcy.
Once you clear out, the landlord has an obligation to mitigate damages, by finding another tenant; if he rents it at a lower rate, you're liable for the difference. In this economy, though, you cannot count on a new tenant cutting your exposure, even with good faith efforts by the landlord.
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