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 Maryland, a business that intends to lease commercial space for various purposes such as offices, warehouses, or retail stores will enter into a commercial lease agreement. Unlike residential tenants, commercial tenants are considered more knowledgeable and are expected to conduct due diligence before signing a lease. Maryland law does not extend the same level of statutory protections 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 safeguard their business interests. The ability to terminate a commercial lease early is typically governed by the specific provisions within the lease agreement itself. It is advisable for a commercial tenant to consult with an attorney to ensure that the lease terms are clear, fair, and provide adequate protection for the tenant's business operations and financial well-being.