I am a landlord residing in New York State.
I have a commercial tenant (physician private practice) who has been with me for more than 15 years. He has sent me a certified letter requesting that we meet to discuss "mutually beneficial terms to an early termination." He wants out of the lease 18 months prior to its termination.
The lease was signed on April 1, 2006 and runs until March 31, 2011.
In his letter he states that he needs more space and in order to survive in ever changing economic and insurance times has to move. He states that he tried to reconfigure what space he had and also hired a consultant in chiropractic design, but was unable to come up with something satisfactory.
He also states that he wanted to move out in 2008, but since I had another space vacant he did not want to leave me with two empty and unrented spaces. The other space has since been rented.
What I know from reviewing the county records is that he went ahead and purchased a building in June 2007 for a new office. So, the idea of a new office has been known since 2007. He also has listed in the current telephone directory that he would have been moving to his new location as of 2008.
The only clause in the current lease is one related to default in payment of rent and if the tenant deserts or abandons the premises, he/she is responsible for the rental term of the lease agreement.
I would like to know what my rights as a Landlord are. I understand that he has purchased a building for his own use and will be renting out other spaces within it. I realize that he wants to move into his own bulding, but i also am now gonig to be left without a tenant.
I also want to agree to something that will provide me with a tenant as soon as he leaves. Is he liablfe for the remaining rent for the term of lease if we cannot agree to something and he abandons the property?
I feel as though I am in the driver's seat since there is a term lease in effect, but I undertand that I must settle this in a reasonable manner.