Your Actual Exposure: $210,000

A $5,000/mo general lease doesn't create $5,000/mo in liability. It creates $210,000 in total exposure across rent, personal guaranty, restoration, and every other clause your landlord drafted to protect themselves — not you.

Where $210,000 Comes From

Remaining Rent$120,000
Personal Guaranty$90,000
Restoration$20,000
CAM Charges$15,000
Early Termination$30,000
Legal Fees$12,000
Holdover$30,000
Total Exposure$210,000

What Most People Miss

The use clause problem. If your lease says 'retail apparel store only,' you can't sublease to an insurance agency or tech company without landlord consent — and the landlord can refuse.

Key Risks in This Scenario

  • Business model pivot doesn't create a legal right to exit the lease
  • Use clause may restrict ability to sublease to a non-retail business
  • COVID-era force majeure precedents don't apply to voluntary business model changes

How to Reduce Your Exposure

  • Negotiate a broad use clause: 'retail, professional services, office, and general commercial use'
  • Include a right to sublease to any business use without landlord consent

Frequently Asked Questions

Can I break a retail lease because my business moved online?
No. Business model changes don't create a legal right to exit. Your options: negotiate a buyout with the landlord, sublease the space, or assign the lease to a new business.
What does a lease buyout cost?
Typically 3-12 months remaining rent depending on how much time is left and how much the landlord wants the space back. A $5,000/month lease with 4 years remaining might cost $60,000-$120,000 to terminate early.
Can I sublease a retail space to an office user?
Only if the use clause permits it. Negotiate a broad use clause that includes office and professional services — this dramatically expands your sublease options if you need to exit.
Does going out of business end the lease?
No. Closing your business doesn't terminate the lease. The landlord can still pursue you (personally, under the guaranty) for all remaining rent, restoration costs, and their legal fees.
What is a lease bailout and how do I negotiate one?
A lease bailout is a mutual termination agreement. You pay a lump sum; the landlord releases you from all remaining obligations. Successful bailouts require: (1) the landlord wants the space back, or (2) you can pay enough to make it worth their while.