Help & How-To

Legal Issues
How do I terminate a commercial lease?
My lease states I can only operate on these premises as a gift and apparel store. My store is within a strip mall which is owned by the same person. The tanning bed company next door to me has now added gifts, purses etc (just like mine). After discussing this with my landlord he said I should talk to the tenant. This tenant is taking business away from me. Do I have grounds to walk away from my lease?

Asked by exclusivelondon
Posted: Thursday, March 27, 2008  |  Found in Legal Issues


More answers by Nina Kaufman
Answer by Nina Kaufman
Generally, you do not have the right to terminate your lease simply because a nearby tenant happens to be encroaching on your business. Unless the terms of the lease state that the landlord will not rent space within the strip mall to a competing business, the landlord's sole obligation was to provide you with the space in good condition and to provide you with the freedom to run your business as you had planned. If he's doing that, he's met his obligations. Your obligations are to pay rent through the end of the lease term. The landlord cannot be held responsible for the fact that the tanning bed company has chosen to expand its product line. That said, if there were anything in the other tenant's lease that prohibited the selling of gifts, or if the landlord somehow encouraged the tanning salon to interfere with your customers (not easy to prove), you might have a cause of action, depending on the laws of your state. Best to consult with a real estate attorney who is familiar with strip mall leases to see whether it's worth the fight. If you don't have much time left on your lease, it might be more cost-effective to stick it out to the end and find another space than to get into a battle over the lease.
Nina Kaufman has a New York City-based boutique law practice and is president of Wise Counsel Press LLC, which produces legal information products for entrepreneurs. She writes the Making It Legal blog and the Business Law Advisor column for WomenEntrepreneur.com.

Note: This response is for your general information only. Be sure to consult with an attorney regarding your particular situation to get the advice you need.



Recent Articles & Resources
We've gathered content from some of the best resources on the web. Find tips to help you run a successful business with this collection of videos, articles, expert blogs, and more.
Marketing and promotion
Nancy Meyers talks about how leveraging new mediums and taking innovative approaches are often necessary to the successful marketing and promotion of

Building and maximizing your network
Use this worksheet to identify the people you want to connect with, where and how to find them and how to make sure you’re spending your valuable

Assessing customer profitability
It’s a standard business adage that it is easier (and less expensive) to sell to a current customer than to acquire a new one. Determining which of

Pitching your business
Whether you are making a sales presentation, seeking financing, networking at an event, or even just chatting with a neighbor, you need to have your

Marketing your business on search engines
To get the results you want from your search engine programs, it helps to learn about how search engines work. Once you’re comfortable with search
Have a burning question? Ask now!