Break cost

[cb14]

Hi All, my commercial lease tenants want to break their lease. There is another 2.5 years to run on the lease. Is there a standard 'break cost' that is used? I expect the tenant to pay legal costs and real estate fees, but what about a break cost for my time & hassle?

[Davo36]

I've always just let them assign (or taken on a new lease) with them paying the rent, agent's costs etc.

So that it doesn't cost anything but my time. And as you say, hassle.

Never really thought about charging for it. Not sure that you can. Will be interesting to hear what others have to say.

[Beano]

Never heard anyone charge for time
Let us know how you get on with charging for your time

[Bradley]

My first suggestion would be to (as per above) have the current tenants find a replacement tenant and then execute an assignment.

If that's off the table then I'd negotiate an exit package, with the worst case scenario for them being 2.5 years lease + OPEX + cost of any reinstatement obligations.

How long do you think the property would remain vacant for while your find a replacement tenant? Be liberal in your estimate. Your bottom line could be base on this + opex + reinstatement.