Expert: Brian Bocchieri - 11/4/2008

Question
Hi - I have a convenient store in Downtown Cleveland and due to the fact Bank was sold to some other bank the building is going to get empty almost. I have about 4 years of lease left and the business has been down almost more than 50% .... I like to know that how I can approach to management so that they can understand my situation and they can lower my rent... I just can not ..can not afford to pay the rent that have been paying for almost 5 years now...please help.

Answer
Hello Al;

I am sorry for your position this is happening all across the country.  The main question is what does it say in your lease?  Is there a clause that it a major tenant leaves (the bank or other) how does this effect your lease?  In some well written leases this situation would be addressed such as if a major anchor is to go dark (leave the space) the remaining tenants have the opportunity to renegotiate their lease.  This does not always work out to advantage of the tenant.  

Please have your attorney read your lease to see if you have any type of remedy.  

This is a problem that people have a tendency to get into when signing a long term lease.  When you are first starting out or you have bought out anothers business things are very rosy and optimistic.  Then when thing start changing they want out of their lease.  You have both signed an agreement(you and the landlord) and made promises on the terms of the lease you both need to abide by.  

Your best solution is to speak directly to the landlord and explain how the bank moving out has hurt business and has hampered your ability to pay.  See if you can pay less rent now for a while and pay a higher rent as things get better.  Remember he has just lost a paying tenant and his cashflow will be suffering,  also he still needs to make his payments to the bank and or investors.  I am sorry there is no easy answer nor easy way to break a lease.  

I hope this has helped.

Wishing you all the best

Brian Bocchieri