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 Mississippi, a commercial lease agreement is a binding contract between a landlord and a business tenant for the rental of nonresidential property, such as office space, warehouses, or retail locations. Unlike residential tenants, commercial tenants are presumed to have greater knowledge and bargaining power, and thus, they receive fewer legal protections under state law. It is crucial for a commercial tenant to thoroughly review and negotiate the terms of the lease agreement, as the lease's provisions will govern important aspects of the tenant's rights and obligations, including the ability to terminate the lease early. The specific terms of the lease will dictate the conditions under which a tenant may break or terminate the lease before its expiration. Given the complexity and potential impact of commercial lease agreements on a business, it is often advisable for a tenant to consult with an attorney to ensure that their interests are adequately protected before entering into such an agreement.