Legal Question in Intellectual Property in California

Re: commercial office lease

Bankruptcy, I suppose......sometimes even the threat of bankruptcy will propel unreasonable creditors to the bargaing table. But before you actually file a Chapter 11 consider how disruptive and perhaps expensive it can be.

Alternatively, you can breach the lease, with or without moving out to cheaper quarters, and see what happens. The landlord must take steps to mitigate damages in order to recover very much; it is sometimes termed a "duty" to mitigate by attempting to re-rent, but technically it isn't a duty so much as it is a precondition to recovery of damages. However, it this market the landlord may not have much luck in finding a replacement tenant at the same rent, or at all, so even vigorous attempts to re-rent may not produce any mitigation and you'll owe the whole rent at the old place as well as at the new location!

Maybe if the landlord won't release you from your obligation it would at least allow you to stretch out the payments, possibly in connection with a renewal for a few more years (if you think the business will survive).

Another possibility is to sub-let some space you don't need due to less activity in your business.