How do break clauses in commercial leases work?
21 October 2025 | Commercial Property |
Many commercial leases contain a “break clause” allowing either the tenant or the landlord to end the lease early under certain circumstances. There are normally various conditions included in a break clause, including specific dates on which the tenancy can be ended early and a requirement for the party breaking the lease early to compensate the other.
Break clauses can be a good idea, especially with longer leases, as they give you a way out of a lease if your priorities change e.g. a particular location you are leasing is unprofitable for your business, or you wish to sell a property that you are leasing and need the tenant to leave.
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