Need advice on a commercial rental

[airx22]

Since this is general discussion and it said I could talk about anything......................anyone out there have some advice about a commercial rental that I want to get out of maybe or at least have our rent reduced. We have 2.5 years left to go and we are paying through the nose and most other businesses are leaving as a result we are loosing foot traffic. We did give a personal guarantee and we are an s-corp. Not sure what other details to give other then paying a lawyer for "advice"is not in our budget.

Thanks all.

 

[dondon48]

you are pretty well stuck unless they give you a break out of the goodness of their heart....especially if they are losing other tenants....you might tell them business is down since the center is losing so many tenants and you may be forced to close if they don't give you a break...

 

[airx22]

I can assume that they would put a lean on our house,but if we decide to sell won't the bank get their money first ?

 

[tas6691]

Your options are to negotiate for lower rent as the other businesses leaving are costing you business, check your agreement for a loophole you can use to your advantage. Other than that, if you break the lease, and you are the guarantor...they are gonna come after you and win. Talk with the landlord, plead, be nice, appeal to his business sense in this rough economy. Breaking the lease is a BAD idea.

 

[tas6691]

I can assume that they would put a lean on our house,but if we decide to sell won't the bank get their money first ?

Once the lien is discovered no bank is gonna finance it, so it wont sell. If it sells, the lien must be satisfied. Yes, whoever holds the mortgage will get paid....so you have to satisfy the lien, think another loan to pay the lien. But after its discovered, most banks and buyers evaporate.

 

[eflat]

If the lessor is losing a lot of other lessees then they will probably be willing to re negotiate. It is happening everywhere right now and many are in the same boat that you are in, they are losing business. So be nice, explain the situation, and try to hash out a new deal. More than likely you will both leave happy.

 

[Hayata]

A little bit of something is better than a whole lot of nothing...

With this in mind, try to negotiate with your landlord. They probably have notes due, too, and I'm sure they want to keep you.

Good luck with whatever course of action you choose!

 

[airx22]

really really appreciate all the great advice,I will try and talk to him again and HOPE that he gives us a break. thanks again for everyones time.