A business that leases real estate and improvements (buildings, etc.) in the form of space for offices, a warehouse, a restaurant, a nail or hair salon, a clothing store, a coffee shop, or other commercial (nonresidential) space will usually be required to sign a written contract known as a commercial lease agreement.
The tenant (the business occupying the space) who signs a commercial lease agreement is generally expected to be a more savvy, sophisticated, and informed tenant (also known as a lessee) than a tenant in a residential lease, and the law usually does not provide a commercial tenant with the same protections as residential tenant receives.
Because the law does not provide a commercial tenant with many protections, it is up to the commercial tenant to read, understand, and negotiate protections in a proposed lease agreement before signing it, as most every paragraph in a commercial lease agreement can have a significant impact on a business’s operations and financial stability.
As with most other questions, a commercial tenant's ability to break or terminate a lease before the end of the lease term depends primarily on the terms of the written lease agreement.
In Alabama, a business that leases property for commercial purposes, such as office space, warehouses, or retail locations, will typically enter into a commercial lease agreement. Unlike residential tenants, commercial tenants are considered to be more knowledgeable and are expected to understand and negotiate the terms of their leases. Alabama law does not afford commercial tenants the same level of statutory protections as residential tenants. Therefore, it is crucial for a commercial tenant to thoroughly review and negotiate the lease agreement to secure terms that safeguard their business interests. The ability to terminate a commercial lease early is largely determined by the specific provisions within the lease agreement itself. It is advisable for a commercial tenant to consult with an attorney to ensure that they fully comprehend the implications of the lease terms and to negotiate any necessary amendments before signing.