Legal Question in Business Law in Arizona

Jen Harris

I have recently signed a commercial lease in Arizona within the last few months for some retail space. Our situation has changed and we no longer need such a large space. We did not get any extra improvement money upon signing just a couple of months free rent.

Our lease doesn't state any specific penalty for cancellation or default. I signed the lease personally with the thought that once we had our LLC finalized we would have it transferred into the LLC.

What is the way to handle this situation?


Asked on 1/22/07, 6:45 pm

1 Answer from Attorneys
James Jenkins Jenkins Law Center PLC

Re: Jen Harris

Big problem here. Your lease does not state specific remedy for cancellation (i.e. breach) because it will be the balance of the payments, less any rent collected if the landlord re-lets the space, plus attorneys fees and costs.

Personally liable = you will be sued personally.

You could ask the landlord to move you to a smaller space in the same center. They might.

You could tell them to try to re-let the space. Guess what, they will also charge a realtor commission if there is an agent representing the center.

You could find another business to share space. Tough, but not impossible.

You could find your own replacement tenant by advertising. Not easy, but possible.

Ultimately, if you cannot afford the space and cannot mitigate the damages, you may have to file bankruptcy.

Consult with an attorney now. Get help.

Sorry for your problem.

Best regards.

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Answered on 1/22/07, 10:58 pm


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