Closing your business before the end of your lease term can be a challenging situation, but it’s not uncommon. Here’s what you can do if you find yourself in this position:
Understand the Consequences: If your lease is for 6 or 12 months and you have to shut down your business before the term ends, you’ll likely be in default of your lease agreement. Each executive suite center handles this differently—some may require you to pay the remainder of the lease term, while others may be open to negotiation.
Negotiation Options: In some cases, the center may agree to take your security deposit as “damages” in lieu of paying the entire remaining rent. This is something you can discuss with the leasing manager to explore any possible leniency or flexibility.
Plan Ahead: If you already know that your business situation carries some risk, it’s wise to sign the minimum lease term (usually 3 months) instead of committing to a longer contract. While the incentives for longer leases—such as discounts or free rent—may seem attractive, you could end up losing more than you save if you need to close early.
Consider the Contract Carefully: Always make sure to think through your decision before signing any lease. A lease is a binding contract, and understanding the potential risks ahead of time can help you make a more informed decision.
If you’re uncertain about your business’s future, it’s always best to opt for a shorter lease term to minimize potential losses.
Chris, Leasing Manager
www.viewpointecenter.com
