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Commercial Lease Termination & Buyout Calculator

Estimate the cost of buying out a commercial lease early. Calculate remaining rent obligation, vacancy loss, and unamortized tenant improvement allowance.

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Landlord's remaining TI and leasing commission costs

Contract Context:
Total Remaining Rent$0
Estimated Buyout Cost
$0
Unamortized Costs$0
Vacancy Loss (re-leasing period)$0

Disclaimer: This calculator is for educational and informational purposes only and does not constitute financial, legal, or tax advice. Real estate investments carry significant risk. Always consult with a licensed commercial real estate professional, CPA, or financial advisor before making investment decisions.

Expert FAQ

How to break commercial lease?

Review your lease for a break clause, negotiate a surrender agreement with the landlord, or find a replacement tenant for a sublease or assignment.

How to get out of a commercial lease?

You can negotiate an early termination buyout, exercise an existing termination option, or prove landlord default (constructive eviction), though the latter is legally complex.

What is a break clause commercial lease?

A negotiated provision that allows either the landlord or tenant to terminate the lease early at a specified date, usually requiring advance written notice and a penalty fee.

How does accounting for tenant improvement allowance work in a buyout?

Unamortized TI allowances are typically factored into the buyout cost, requiring the tenant to reimburse the landlord for the remaining unamortized portion of the original build-out costs.

Can a landlord break a lease?

Yes, but typically only if the tenant defaults on rent, breaches lease covenants, or if the lease contains a specific landlord early termination or redevelopment right.

Can a landlord cancel a lease?

Only under strict conditions outlined in the lease contract, such as eminent domain, severe property damage, or a negotiated termination clause.

What happens if the landlord breaks a lease?

If a landlord unlawfully breaks a lease, the tenant may sue for breach of contract, seek an injunction to stop the eviction, or claim damages for relocation and lost business.

Can a landlord terminate a lease early?

Yes, if a mutual surrender agreement is reached, or if the landlord invokes a demolition, sale, or redevelopment clause present in the original agreement.

Can a tenant terminate a lease early?

Yes, by paying a negotiated buyout fee, exercising a break clause, or transferring the lease liability via assignment, pending landlord approval.

What happens if a tenant breaks a lease?

The tenant remains legally liable for the remaining rent, unamortized costs, and leasing commissions until the landlord mitigates damages by finding a new tenant.

How is early termination of lease by landlord handled?

It requires formal written notice according to the lease terms, often accompanied by a termination fee paid to the tenant to cover relocation costs if the tenant is not at fault.

What are the penalties for early lease termination by tenant?

Penalties typically include paying the remaining rent obligations, reimbursing unamortized TI and brokerage commissions, and forfeiting the security deposit.