Commercial Real Estate in Texas rent issues with Landlord
Hello, we have been renting a commercial property in Texas for over 15 years now. The total space is divided in two lots so we have been paying for both lots. Over the past two years we have not been able to use one lot because the city compliance told us that because of its zoning restrictions, it could not be used. We are having to pay $1k/ month in storage units to store what we originally had there but the landlord is still charging for total lots when we can only use one. I brought it up and they said well we can charge for one lot but it will be the same price because of rent going up since last year. Last year we brought it up and they said once you catch up on rent (we were a little behind at the moment because of COVID) then we can discuss lower monthly payments for the one lot. Not they’re saying since that was one year ago that rent will remain the same for one lot as what we were paying last year for two lots. Is there anything that can be done here? We’re very limited on what we can do because of zoning and so is she if we move our business somewhere else but not sure what we need to do.
[{"id": "irof6x2", "text": "What does your lease say with respect to rent /occupancy/ leased space ?", "replies": [], "depth": 1}, {"id": "iroxx3n", "text": "Few things here, you need to read your contract. You most likely agreed to pay for both lots for X amount per month. Without any clauses in it protecting you from paying the full price if one lot becomes unusable under specific circumstances then really not much you can do to renegotiate a fully executed contract. If there was a breach in contract or failure to perform i would consult a real estate attorney.\n\nIn regards to the rent increase they cant just hike rent up on you if you have an agreed price stated in the lease agreement. If you are essentially month to month without a contract then you are shit out of luck they can do whatever they want. Sure rent has gone up but if you now have 50% space and they want the same price that is basically a 100% increase. I would have a broker represent you in the lease negotiation as the lessor will pay for it and most likely get you a better deal.", "replies": [], "depth": 1}, {"id": "irphiiv", "text": "What\u2019s market rate?", "replies": [], "depth": 1}, {"id": "irqhpkj", "text": "Sublease it? Not sure what your restrictions on that are but that\u2019s the best course. Rent it out with a NNN lease at current rates and now you\u2019re more than likely covering cost of your lease, but with a potential of turning a profit. Definitely consult with a professional to help navigate this\n\n**EDIT** Grammar", "replies": [], "depth": 1}]