Can You Break Your Commercial Lease Early?

Most business leaders don’t think about leaving a lease early—until they’re forced to.

Maybe the business has grown. Maybe the team structure has changed. Or maybe the space just isn’t supporting where you’re headed anymore.

Whatever the reason, you’re now facing a real question:

What happens if your lease no longer works?

I get this call all the time—from smart, experienced leaders who feel stuck in space that no longer fits. So let’s talk about what’s actually possible, and how to approach it strategically.

1. Understand the Language You Signed 

Most commercial leases are written to protect the landlord, not you. So before you make any moves, pull the lease and look for:

• Early termination rights
• Assignment or sublease clauses
• Restoration obligations
• Default provisions 

If you’re not sure how to interpret it—don’t guess. Bring in someone who lives in this world and can translate the fine print into real options.

2. Sublease or Assign the Space 

This is one of the most common (and often effective) paths. If your lease allows it, you can bring in another business to take over the space. The key here is finding a qualified tenant and getting the landlord’s blessing.

But you need someone in your corner—someone who can navigate the lease, make the structure work in your favor, and ensure your business isn’t exposed along the way.

3. Negotiate a Buyout

In the right scenario, a direct conversation with the landlord can go a long way. If the space is marketable or you're willing to negotiate, a buyout might be possible.

It comes down to smart math—comparing the cost of staying put with the value of moving forward.

4. Restructure Strategically

If staying in the building—or within the landlord’s portfolio—is on the table, a “blend and extend” might make sense. That could mean downsizing your footprint now while extending the lease at a better rate.

Done right, it creates stability for the landlord and flexibility for you.

So what’s the takeaway?

Commercial leases are commitments, yes—but they’re not concrete walls. If your current space is slowing you down, don’t wait for it to turn into a bigger issue. Early conversations lead to better solutions—and better leverage.

You deserve a space that works as hard as you do.

If you’re facing this kind of decision, we’re here. No pressure. Just straight talk, clear strategy, and advocacy you can count on.

Let’s talk.

Phone: (480) 990-9000

Email: info@keyser.com

Free Lease Review: https://keyser.com/lease-review/

Frequently Asked Questions

1. Can a business legally break a commercial lease?
   Yes—but it depends on the terms of your lease and how you approach it. Most leases don’t allow for an easy exit, but there are often creative strategies available—like subleasing, lease assignments, buyouts, or renegotiation—that can help you transition out of the space without unnecessary risk.
2. What happens if I walk away from a commercial lease?
   Walking away without a plan can have serious consequences. You could be liable for unpaid rent, default penalties, and legal fees. It’s always best to review your lease carefully and consult a tenant-only advisor to explore strategic options before making a decision.
3. How can I get out of a commercial lease early without penalty?
   While most leases include some form of early termination cost, you may be able to reduce or avoid penalties through subleasing, negotiating a lease restructure, or offering the landlord something of value—like an extended lease in another space. The key is to act early and approach it strategically.