I asked a similar question to this a few weeks ago but it was concerning existing residential tenants in the building. I'm not sure if the commercial tenant involved in this question poses any difference in answer. Background: I just purchased an apt building that has commercial storefronts on the first floor. One storefront has an existing tenant.
The lease is written of course to be between the previous owners' company and the existing tenant's company with an initial lease term of 1 year from May 1 2014 to April 30 2015. Does this wording nullify it for new owners of the building (thus providing an opportunity for me to use my own lease) or is this commercial lease tied to the property (not the owner) and therefore still in effect until the initial 1 year lease term has expired in April of next year?
If the lease does not have a renewal option the commercial tenant becomes a month to month tenant at lease maturity. They have the right to leave or you have the right to ask them to leave. You have to negotiate new lease terms at that point. May as well use your form of lease.
In my state the lease is tied to the property and you buy the property subject to the leases in place.
Lease maturity for the lease between the previous owner and the current tenant hasn't been reached yet since it has a 1 year initial term that began on May 1 2014.
You could always approach them and ask if they would like to sign a new lease now before the term is up. Some Tenants would, some won't. No harm in asking though.
One year is rather short for a retail lease. Was it a start-up company? How are they doing?
You mentioned other retail units. Are they occupied now?
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing