How can we end out lease if we have rising rent but declining revenue?

UPDATED: Oct 1, 2022

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How can we end out lease if we have rising rent but declining revenue?

We have been operating restaurant for past 4 years in a strip center. Our rent went from 6k to almost 8k this year while our revenue declined from approximately 45k per month to 26-28k now. The landlord Publix opened 2 more restaurants in our vicinity which obviously added to our lost revenue. Also, the landlord, a grocery chain, came out with very aggressive pricing on their deli items. Our lease will expire in 2 years. How can we get out of it now? We already asked for rent reduction last year and were declined. We can’t go on at this pace anymore. Last year we had to use money from our retirement savings and maxed out our business credit card just to pay the bills. Now we have same problem plus tax bill for taxes and early withdrawal penalty.

Asked on April 17, 2019 under Real Estate Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Unfortunately, negative changes in your financial situation are NOT legal grounds to terminate a lease early. It is also not grounds that your landlord is effectively competing with you, unless the lease itself had some clause preventing them from doing what they are doing. (If it did, then their breach of that clause would be a "material," or important, lease violation which would allow you to treat the lease as terminated and end it early.)
Once you sign a lease, you are obligated for its full duration unless there is some early termination clause in the lease, with which you fully comply, or unless, as mentioned above, the landlord breaches or violates the lease in a material way. If those do not apply, you will not be able to get out of the lease early.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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