Key Considerations for Terminating Commercial Leases

Real Estate attorney Alexander Lycoyannis and litigation attorneys Joshua Levenson and Anne Beehler wrote a LexisNexis Practical Guidance® article exploring the complex dynamics of commercial lease terminations, addressing key legal and practical considerations for both owners and tenants. The authors stress the importance of carefully reviewing lease terms, particularly regarding defaults and potential remedies, while also considering jurisdiction-specific legal requirements such as an owner's duty to mitigate damages. This article highlights strategic factors that can influence bargaining power during negotiations, including market conditions, lease guaranties and security deposits. For tenants, it outlines limited termination rights and potential defenses in eviction proceedings, such as force majeure and constructive eviction. The attorneys emphasize need for both parties to thoroughly understand their legal rights and options to effectively navigate lease termination scenarios, whether through negotiation or litigation.

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