Signing a commercial lease agreement in New Jersey is a legally binding commitment that landlords and tenants should not take lightly. Once they enter this agreement, both parties are bound to specific terms and conditions for an agreed-upon duration.
However, life and business circumstances can change, leaving tenants wondering if they can legally break their lease without facing substantial financial penalties. In the Garden State, there are specific circumstances under which a tenant may legally terminate a commercial lease. Understanding these situations can help tenants navigate this challenging process while avoiding unnecessary conflicts or legal disputes.
Commercial Leases in the Garden State
Commercial leases differ significantly from residential leases; they often involve:
- Longer terms
- Fewer tenant protections
- Greater flexibility for landlords in terms of customizing lease agreements
While residential tenants benefit from robust protections under the state’s landlord-tenant law, commercial tenants are expected to operate under the assumption of equal bargaining power with landlords. Therefore, breaking a commercial lease requires a strong legal basis or compliance with the lease’s terms for early termination.
Legal reasons to break a commercial lease
Suppose the landlord falls short of their obligations as outlined in the lease agreement; tenants may have grounds to terminate the lease. For example, tenants can pursue early lease termination due to a material breach of contract if the landlord:
- Does not maintain the premises in a habitable condition
- Compromises the safety of the commercial premises
- Fails to provide agreed-upon utilities and services
In such cases, the tenant must provide written notice to the landlord and allow a reasonable period for the issues to be resolved before pursuing termination.
Breaking a commercial lease in New Jersey can be a complex process with significant implications for both parties. Tenants and landlords who find themselves in such a predicament can benefit from legal guidance to determine the most suitable route to address any concerns.
