What can I legally do to fight back a commercial landlord who discriminately declines us an option to renew?
My family purchased a Chinese restaurant business in a commercial shopping center about five years ago in California and our five year lease is up in August. The owner of the commercial property has not offered our restaurant business an option to renew our lease. We had already invested a couple of hundred thousand dollars in this business (including expensive computer and kitchen equipment), but as the end of the lease approaches, we’re scared that we can’t even sell the restaurant off even if we wanted to. I have spoken with the Asset Manager of the company that owns the property and he said that he cannot give us a long-term lease but we can pay rent on a month-to-month basis.
When I asked why couldn’t we get a long-term lease renewal, he originally said that they were going to do some remodeling on the entire front building complex (the building’s arcade) after our lease ends sometime while we’re paying rent on a month-to-month basis and then he said that we will need to vacate the premises once construction actually starts (he also said that he was going to give us a 30-day notice to vacate as well). But then I asked if we could get our original business location back after construction has completed… A moment later he said that there’s going to be a "70% chance that there’s going to be investment in the property" so that they can "change up the assortment of tenants on the property" towards a specific marketing concept where there will be select requirements for the new tenants: business income level, type of business, ability to pay higher rent, etc. I don’t exactly know what kind of "marketing concept" he was going for or even if restaurants were a part of that marketing concept equation’s composition.
It’s interesting to note that some of our family business’ neighboring tenants are also of Asian-descent, but they have about two years of their lease left. I just found it odd that they were targeting our mom and pop businesses and slowly try to get us out of the shopping center.
Can this company just kick us out like that? Isn’t there some sort of California Commercial Code that says this illegal? But more specifically (and what my family’s more concerned about), is there any way to make the company help us recoup our losses from having to find another location for our restaurant business?
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4 Responses to “What can I legally do to fight back a commercial landlord who discriminately declines us an option to renew?”
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They are NOT targeting you. They are getting rid of EVERYONE as soon as their leases are up, because they are legally required to honor the existing leases. NO state requires ANY landlord to renew leases. Any lose is an INHERENT risk of operating a business. You have NO claim. As it stands, you were given more notice than legally required. Find a new location BEFORE August.
I guess not unless you seek Information from a lawyer … mean while he would’ve had to place a blue print copy to the council for legal changes into the shopping center you might be able to see the blue prints from there. if not if he hasn’t done so then there may be a way to stop this . it could all be legal . may be its time to buy your own restaurant , see if you can buy the space from him. but I would be curious to know what sort of center he has in mind but I strongly suggest legal advise on this one
Sorry, since you don’t own the property, they can do anything they like…Sounds like they got an offer to BUY their property, and they’re going to make a fortune… so OUT ON YER BUTT YOU GO, and there’s absolutely nothing you can do about it.
Since everytime you ask your landlord a question, he comes back with a different answer, you can bet that someone came along to take his property off his hands for a big profit. He doesn’t care at all about his tenants, only making a quick buck in this economy.
Basically… SCREWED DUDE.
Sorry. The landlord is not liable in any way to help you move or recoup your losses.
It’s all on you.
Sometimes capitalism sucks, don’t it?
Good luck.
You seem to be asking if a five year lease is actually a ten year lease. It is not.