Buying a Commercial Property Ending Current Tenant Lease

by Sharon Cameron
(Melbourne, Victoria, Australia)

When you buy a commercial property are you able to end the lease of an existing tenant in that property?

Answer: The simple answer is no. You have to honor the terms of the lease.

In case you wish to redevelop the property or put it to a better and more productive use you can negotiate to buy back the lease. You should do this negotiation during the due diligence period prior to going unconditional on the deal.