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Sundevil2007 · Apr 25, 2007, 01:25 PM

We have 6 more years on an office lease in a 30 office office park that is in the process of being sold. The property will be torn down and replaced with larger more upscale office buildings.

We have been offered the opportunity to break our lease but the moving costs will be a minimum of around 40k not to mention the added cost of much more expensive rent.

Do landlords buy out leases? Is there a formula for arriving at the $ number?

karent23 · Apr 25, 2007, 01:43 PM

What is written in the contract about lease breaking?

Lowtax4eva · Apr 25, 2007, 02:01 PM

It's not exactly the same as breaking a lease.

Your basically being forced out, I've been told that in these cases (building being demolished or converted to another type of building) you are entitled to compensation for a part of the rent, it's all varied by where you live, check with the housing authority in your state / province. But they may have to pay your moving costs... and maybe a good deal more since your lease is for so long.

excon · Apr 25, 2007, 03:12 PM

Originally Posted by Sundevil2007

Do landlords buy out leases?

Hello Sundevil:

Of course they do. He wants you out. He'll make money if you leave early. You're willing to leave early for some cash. That sounds like a deal waiting to happen.

Is there a formula? No. The market will decide. If you're the last tenant left, the value of your move is higher than if there other holdouts. How much will it cost to move? You're going to have to pay that anyway, just down the road. He's certainly not going pay your entire moving costs. Offer him something. He'll counter, and you're off to the races.

excon

Fr_Chuck · Apr 25, 2007, 03:53 PM

There are no real guidelines, it is all making a deal,

They want you out, but you can force them to let you stay, you don't have to leave unless the lease allows it.
So you come up with a figure that you think is fair, and go to them and say, I will move if you buy my lease for... dollars.

landlord advocate · Apr 26, 2007, 06:35 AM

Have you read your lease very carefully? Is this a government restoration project or eminent domain? The answers to the questions make a big difference in the advice that we give you.