Legal Question in Real Estate Law in California
Commercial lease negotiations
Is it legal for a commercial property manager/broker to offer a new lease to someone during the 30 day termination period of the existing tenant? Or must a lease be listed in the open market? The existing lease was for month-month tenancy with no option to renew. We have signed a lease that begins on the first day the 30 day notice to vacate expires for the existing tenant. The tenant has threatened to sue the property manager for not giving him a reason to terminate his lease or an opportunity to negotiate . Is what took place legal/illegal? Are there any grounds in his threat to sue?
3 Answers from Attorneys
Re: Commercial lease negotiations
Everything depends on the languange in the lease. We have have to review the lease and any letters and correspondence to help you. We handle cases all over California.
Re: Commercial lease negotiations
Do not need to offer it to them, but they should have been more careful in leasing to you. Landlord might be liable for failure to deliver to you; check your lease.
JOEL SELIK
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Re: Commercial lease negotiations
When a commercial lease ends, it ends (subject only to any rights the tenant may have by virtue of the lease itself, such as an option to renew). The landlord is under no compunction to re-offer to the former tenant, or to anyone. There is only a duty to avoid illegal discrimination based upon a prospective tenant's "membership" in a protected class (e.g., race, religion, etc.).
However, to expect a prior tenant to be out on the literally final day (let's say, Nov. 30) of a lease so that the new tenant can move in at 8 a.m. the following day (Dec. 1) is to live in a fool's paradise.
The former tenant probably has no ground for a successful suit. However, his foot-dragging can cause you a lot of grief. You should begin thinking about how you cope with a delay in obtaining possession and whether your lease gives you any right to recover losses you incur as a consequence of failure to deliver possession on Day One of your lease.