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 Massachusetts, a business that leases commercial space such as offices, warehouses, or retail locations is typically required to enter into a commercial lease agreement. Unlike residential tenants, commercial tenants are considered to be more knowledgeable and are expected to negotiate the terms of their leases. Massachusetts law does not provide the same level of protection to commercial tenants as it does to residential tenants. Therefore, it is crucial for a commercial tenant to thoroughly review, understand, and negotiate the terms of the lease agreement to ensure it aligns with their business needs and to safeguard their operational and financial interests. The ability of a commercial tenant to terminate a lease early is largely determined by the specific provisions outlined in the lease agreement itself. It is often advisable for a commercial tenant to consult with an attorney to assist in the negotiation and review of a commercial lease to address any potential issues and to understand their rights and obligations under Massachusetts law.