James2011
10-07-2010, 06:45 PM
I have one Mat and one small dry cleaners(pick-up station).
My DC's business is so slow, so I want to close store, but I have one question about Lease.
I purchased this DC three years ago and the seller had 5 years lease with additional 5 years option lease. So his lease had been assigned to me.
this lease had been expired on end of August this year.
On feb/2010, Seller asked me whether or not I want to exercise the option lease, so I sent letter to landlord that I wanted to get into option lease.
Since then, no communication from landlord. no signed document and no phone call from him.
But I paid Sep rent and still he didn't say anything.
So, now I have two questions:
1) my current lease is Month to Month? or 5 years Lease?
2) if I want to close out store and going out, do I have to pay 4years 11month's rent?
I looked at the original lease document and it's very simple, just around 10 pages and not complecated as shopping center's:
this is the one regarding option lease:
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12. If at the expiration of the term of this lease the lessee shall have performed all the terms and conditions required by the lease, then the said lessee shall have the right to renew for and additional five (5) years. However, the monthly rent of the renewed lease shall be negotiated by and between the parties to said renewed lease, meaning that the monthly rent of two thousand Dollars ( $2,000.00) as agreed to be the parties to this agreement may increase or decrease for any subsequent renewal period; any increase shall not exceed fifty percent (50%) of this lease's base rent of $2,000.
My DC's business is so slow, so I want to close store, but I have one question about Lease.
I purchased this DC three years ago and the seller had 5 years lease with additional 5 years option lease. So his lease had been assigned to me.
this lease had been expired on end of August this year.
On feb/2010, Seller asked me whether or not I want to exercise the option lease, so I sent letter to landlord that I wanted to get into option lease.
Since then, no communication from landlord. no signed document and no phone call from him.
But I paid Sep rent and still he didn't say anything.
So, now I have two questions:
1) my current lease is Month to Month? or 5 years Lease?
2) if I want to close out store and going out, do I have to pay 4years 11month's rent?
I looked at the original lease document and it's very simple, just around 10 pages and not complecated as shopping center's:
this is the one regarding option lease:
------------------------------------------------------------------
12. If at the expiration of the term of this lease the lessee shall have performed all the terms and conditions required by the lease, then the said lessee shall have the right to renew for and additional five (5) years. However, the monthly rent of the renewed lease shall be negotiated by and between the parties to said renewed lease, meaning that the monthly rent of two thousand Dollars ( $2,000.00) as agreed to be the parties to this agreement may increase or decrease for any subsequent renewal period; any increase shall not exceed fifty percent (50%) of this lease's base rent of $2,000.