Two years into a new 10-year lease (with a +5 option) the tenant realised that his lease was incorrectly priced; the business was already bleeding money and there was new competition coming into the catchment which would cause even worse losses.

A GEM Lease Analytics™ report pointed to an annual gross rent of about $150,000 as the appropriate level, and that would have allowed the business to keep trading. The tenant asked the landlord for a rent reduction to a more sustainable level, but the landlord declined.

Following legal advice, and a thorough review of the lease terms, the business owner discovered he could vacate the lease/property without penalty. He chose to vacate. The investment savings from the rent alone on the remaining 7+ years of the lease, without considering the costs of running the operation at a loss, was close to $2.25 million.