Is it possible for a landlord to unreasonably withhold us from assigning or transfering a commercial lease?
I will also add this started as a month to month rental agreement and we updated to add a 2 yr landlord guarantee as well as a
some language that says my company & or assigns.
What does your lease say? Most commercial leases have a section on assignment and subletting. Covenants against assignment are enforceable.
Real Estate Attorney
Your lease will control. Unless it say the landlord cannot unreasonably withold approval to a requested assignment then the landlord my refuse such approval.
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I agree with my colleagues that your lease will govern your rights to assign or transfer the lease. With that said, the landlord typically has the right to withhold consent if the assignee or transferee is not of sufficient financial strength or for other commercially reasonable reasons. For example, the landlord may not allow assignment or transfer to a type of business that the landlord does not want in the space - either it represents a type of business the LL does not want or it may violate other tenant's exclusive use, etc.
My caution is to be careful what "unreasonably" withholding consent entails. As I stated, what may seem unreasonable to you may not be commercially unreasonable.
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