Legal Question in Real Estate Law in California

I have a commercial lease on an industrial space that ends at the end of September. We are purchasing a new building and will not be able to occupy the new building until November 1 or December 1. We have a holdover clause in our lease that states that we are to pay 200% of our current rent if we want to holdover. We have no option to renew in our lease, nor do we have a month to month provision. Our landlord said if we want to stay, we can at the 200% holdover rate. I feel this is a ridiculous penalty to pay even when we are willing to keep paying our current rent. What would be my legal ramifications if I just pay my current rent and avoid paying the hold over. Will they sue me for the difference? Any other legal problems you can think of?


Asked on 8/26/15, 5:34 pm

1 Answer from Attorneys
Nicholas Spirtos Law Offices of Nicholas B. Spirtos

There are very few protections in place for commercial/industrial tenants. The agreement will govern your arrangement. It is possible that the 200% increase might be considered excessive. You should try to work something out with the landlord.

If they refuse to negotiate, then you may need to pay the increased rent. If you pay only the rent you are paying now, the landlord could move to evict you for non-payment. How realistic is your move in date? Maybe you can reach an agreement with the landlord for a 6 month lease. That will probably be cheaper than 200% increase or the cost of moving somewhere else until your new building is ready. That would also give you some time to move into the new building.

Read more
Answered on 8/27/15, 9:05 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in California