We own a small S Corp located in Indiana.
Our landlord sold and new owners of our shopping center took over. They want to increase rent 34%. He owns a lot of properties in prestigious communities [ours is not].
I know many of the owners/tenants located in the center. In speaking with them, it seems he has much to lose in his new endeavor if he continues this dictatorship type reign.
We have (2) rights of renewal to renew under the current terms for another 3 years each. I cannot renew this amount of space for another term. My business volume is no longer able to support it.
We have made the decision to close. However, I have a client who may be interested in purchasing.
In accordance with our lease terms:
-must give 90 days notice to exercise my renewal terms.
-must give 60 days notice of my intent to vacate.
Our business has been in this center if 13 years and the last thing I want to do is burn bridges. I know NOW, without a doubt that I will close if the client does not buy. The client does not intend to keep the business located here anyway.
We have 3 PT employees. We want to give them as advance notice as necessary- but not before the landlord.
If we close and not sell, I want to refrain from selling service items that will need refunded later.
When he made his 34% increase offer, I explained my renewal options. He was unaware of our renewal options at the meeting and I think that's why he's keeping quiet about our renewal- waiting for us to expire that 90 day time frame.
We want to put off the "for lease" signs hanging in the windows for as long as necessary while we still occupy the premises. According to our lease, the landlord may put them up 6 mo. prior to the lease expiration, if we have not signed a renewal.
Would you notify the landlord earlier than required?