Assignment To Lease A Retail Space In Florida.
I am in the process of purchasing a small business in the Miami area and soon would have to sign and assignment of lease from the previous owner. My question is, in the original lease, the option to renew was crossed out, how could this situation affect my renewal when it comes time for the lease to expire? The lease is due to expire in October 2006. Also, my yearly increases are tied to a CPI index and there is no cap to the percentage of the increase. Is this standard procedure or should I be concerned? Please advise. Thanks. :-?
Not having an option puts you at risk if you have invested in tenant improvements. The landlord could not renew when your lease expires and keep the benefits of your investment.
[ Edited by alhf on Date 08/26/2004 ]
Unless you expect to be ready to re-locate the business in 2006 (which really isn't that far away) I'd contact the land-lord and negotiate an extension on the lease prior to purchasing the business.