You’re Paying for Space You Don’t Use
Empty desks and quiet conference rooms are a cost you can see. If most days look the same, you may be carrying excess space that no longer fits the way your team works. Track actual use for a few weeks. If large areas sit idle, that is a clear sign to right‑size: sublease office space, move to a smaller office lease, or rely on an early termination clause if your documents allow it. When you are paying rent for rooms no one needs, the office is not doing its job.
Your Costs Are Above Today’s Market
Commercial real estate changes fast. If similar offices nearby now lease at lower base rent and better incentives while you keep paying higher‑than‑market rates, the gap grows each month. Review the lease term, escalation language, operating expenses, and any termination fee. If the total is well above market, it may be smarter to negotiate now than to keep paying rent under old pricing.
The Layout Fights Your Workflow
A long‑term plan can age quickly. If your space blocks collaboration or hybrid schedules, productivity suffers. Ask yourself: Can we reconfigure without major build‑outs? If the answer is no—or the landlord will not approve simple changes—consider an office space lease termination and a move to a layout that works. The right plan is often smaller, cheaper, and easier to use.
Cash Flow Is Tight and Risk Is High
A long-term lease can strain cash when revenue dips. Read the documents closely. Know your termination clauses, notice period, and any payback for free rent or tenant improvements. Confirm whether the security deposit can be applied to a termination fee or only to unpaid rent. Compare these numbers side by side to evaluate three paths: staying, subleasing, or breaking a commercial lease through a negotiated amendment.
Time Windows You Cannot Miss
Many commercial lease agreements include deadlines that trigger renewals or holdover penalties. Missing a six, nine, or twelve-month notice period can lock you into another term lease or result in a rent increase. Build a calendar with every critical date: renewal windows, expansion or contraction rights, and the earliest date you can end the agreement early without extra cost. Send notices on time and keep proof of delivery.
Restoration and Other Lease Obligations
Lease obligations at the end of a term can be large. You may need to remove cabling and partitions, restore slab openings, take down signage, and repair walls. Ask the landlord to confirm the required surrender condition in writing. Price the work before you decide. Restoration can change the math on whether to complete the lease term or terminate early.
Guarantees and Credit Exposure
Some leases include a personal guarantee or a limited guarantee that burns off over time. If you plan to terminate the lease, calculate that exposure. During lease negotiations, tie any termination fee to a full, written release of guarantees. That release can be as valuable as a rent discount.
Subleasing Helps—but Not Always Enough
A sublease can reduce costs while you reset. Check consent rules, review fees, and any landlord recapture rights under your commercial lease agreements. If sublease rates in your market are far below your rent or the floorplate is hard to divide, subleasing may be a partial bridge rather than a full fix. Build a simple market brief with rent comps and a list of prospective tenants. Showing clear mitigation can support a lower buyout.
Short‑Term and Month‑to‑Month Options
If headcount or location plans are in flux, avoid fresh long‑term commitments. Consider short-term solutions: a small direct lease with an extension option, a license inside a managed suite, or space with month-to-month flexibility. These options keep you nimble while you test hybrid policies or new markets without taking on a multi‑year obligation.
A Simple Decision Framework
Lay out three choices: stay to the end of the lease term, sublease the excess space, or terminate now. For each, add up base rent, operating expenses, utilities, restoration, brokerage, legal costs, IT decommissioning, any termination fee, and the value of a full guarantee release. Add timelines and risks. When the numbers are clear, the best path usually stands out.
How to Move Forward—Step by Step
- Read the full lease, including riders and exhibits, and flag early termination clause language, termination clauses, and surrender rules.
- Run a quick market check so you know today’s rents and incentives in your submarket.
- Get legal advice from counsel familiar with commercial real estate so notices and amendments are done correctly.
- Ask your broker to surface prospective tenants and benchmark realistic sublease rates.
- Prepare a short, clean proposal that helps the landlord re‑lease quickly and lets you end the agreement early on fair terms.
Signs It’s Time to Act
The top signs it might be time to terminate your long‑term office space lease show up as excess space, above‑market costs, and a layout that slows work. Add the risk of missed deadlines, the price of restoration, and the weight of guarantees, and the decision becomes a business case—not a guess. If the office no longer supports the team, it is reasonable to break the lease through a negotiated exit and move on.
Find Flexible Offices That Scale With You
If you are ready to right‑size, Onboard Coworking offers private offices in the San Gabriel Valley with short-term options and month-to-month plans. Compare suites in El Monte and private office rentals in Diamond Bar, set up fast, and choose the footprint that fits—without long commitments.
