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 Wisconsin, a commercial lease agreement is a binding contract between a landlord and a business tenant for the rental of nonresidential property, such as office spaces, warehouses, or retail locations. Unlike residential tenants, commercial tenants are considered more knowledgeable and are expected to negotiate the terms of their leases. Wisconsin law does not provide the same level of protection to commercial tenants as it does to residential tenants, which means it is crucial for a business to thoroughly review and understand the lease agreement before signing. The ability to terminate a commercial lease early is typically dictated by the specific provisions within the lease agreement itself. Therefore, it is advisable for a business to seek the guidance of an attorney to negotiate favorable terms and to ensure they fully comprehend the legal implications of the lease agreement they are entering into.