My business is closing due to the down turn, but there is a long time left on my lease. How do I mitigate this?
The answer to this will depend on the lease document that you signed. In general, you will have a few options. First of all, go and talk to the property owner and have a frank, candid conversation with them. You never know what other plans they may have for the site and it could be possible that it suits them for you to go. Most leases also have the right of assignment or subletting. That is, you can find someone else to effectively take over your lease. However, you do then become responsible should they fail on any of their lease obligations. Sometimes they may want a longer lease than you have to offer and the property owner may be happy to do a new agreement with them direct thus, you then lose the overriding responsibility for their actions. Another option is to buy your way out of the lease. That is, what cash payment will the property owner take today in order to end your lease and all your ongoing responsibilities?