{"id":5724,"date":"2024-02-13T13:35:19","date_gmt":"2024-02-13T19:35:19","guid":{"rendered":"https:\/\/npcrowd.com\/?p=5724"},"modified":"2024-02-15T08:22:08","modified_gmt":"2024-02-15T14:22:08","slug":"__trashed-4","status":"publish","type":"post","link":"https:\/\/npcrowd.com\/__trashed-4\/","title":{"rendered":"Tenant’s Guide to Exiting an NNN Lease Early: Options and Considerations"},"content":{"rendered":"\n
Exiting a triple net (NNN) lease early can be a complex process for tenants, especially for nonprofit operations staff and executives who may not deal with commercial real estate on a daily basis. This guide aims to equip you with awareness and practical suggestions to navigate this process effectively, aiming for the best outcome with the least cost.<\/p>\n\n\n\n
An NNN lease is a type of commercial real estate lease in which the tenant is responsible for all costs associated with the property, including real estate taxes, building insurance, and maintenance, in addition to rent and utilities. Exiting such a lease early requires careful consideration and negotiation.<\/p>\n\n\n\n
Before signing a lease, it’s crucial to negotiate early termination rights. This includes specifying conditions under which the lease can be terminated early, penalties, and notice periods[2]. If you’re already in a lease without these rights, you might still negotiate an exit, but it will likely come at a higher cost.<\/p>\n\n\n\n
One common strategy is to find another business to sublet the space or to assign the lease to a new tenant. This can be an attractive option for both the tenant looking to exit and the landlord, as it ensures continuous occupancy and income from the property[2].<\/p>\n\n\n\n
A lease buyout involves negotiating with the landlord to pay a lump sum to terminate the lease early. The amount is usually less than what would be paid if the lease ran its full term but can still be significant[2].<\/p>\n\n\n\n
Some NNN leases include termination clauses that allow for early exit under specific conditions, such as a bailout clause for low sales or a co-tenancy clause if a major tenant leaves the property[2]. Understanding these clauses and their implications is crucial for leveraging them effectively.<\/p>\n\n\n\n