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I just want to know if this is possible and if the tenant has any recourse. The business has been in the same space for 33 years. Yesterday the LL came in and asked us to be out by September since they plan to start their business and need our space. But the business they plan to start is the same we have, so they would build upon our work for their new business.
I just want to know if this is possible and if the tenant has any recourse. The business has been in the same space for 33 years. Yesterday the LL came in and asked us to be out by September since they plan to start their business and need our space. But the business they plan to start is the same we have, so they would build upon our work for their new business.
That is a very interesting question, I am not sure the commercial renter has a leg to stand on.
They do not own the property, the owner does. He can choose to do with it as they please.
It is also not illegal to compete against a business by creating a similar business.
Bottom line is I have no idea, but I'm interested.
I'm assuming that, since the notice given is so short, the tenant doesn't have a term lease (or has one which is ending soon). I rather agree with the previous poster, though, that there's likely no impediment to the owner/landlord opening up the same sort of business in the space. I've seen this happen a lot particularly in the restaurant business although other businesses also come to mind.
If you have any equipment which the owner needs then sock it to him on price or else clean out the whole place of everything that's not a permanent fixture.
As long as you don't have a lease that extends beyond that time period, the landlord can ask you to vacate. It is his building and not yours. That's the down side to being a renter.
33 years you've been there? Just think. if you'd bought a place instead of renting, you'd have been the owner of your space 13 years ago.
I suspect that what you are hoping for is a "non compete" clause. I've never heard of one that applies to the rental. They are used when purchasing a business. If it is in the contract, the seller of the business can not open the same type of business within so many miles during a specified time period. For example, for 5 years, he can not open the same type of business within 50 miles.
Unless you have a non compete contract with your landlord that survives your lease, I suggest that you get busy and find a different (and better) location. If you work at it, you can take your customer base with you. I hope you have given good service and good product all those 33 years so that your customers will be happy to follow you to a new location.
I just want to know if this is possible and if the tenant has any recourse. The business has been in the same space for 33 years. Yesterday the LL came in and asked us to be out by September since they plan to start their business and need our space. But the business they plan to start is the same we have, so they would build upon our work for their new business.
It's not your space, it's the landlord's space, and he doesn't want to rent to you anymore. He can open/run/operate and type of business he wants out of his space and you have no say or control over that.
Seems to me you're going to have some competition in town, I hope you guys take care of your loyal customers so you can keep their business and not lose it to the new guy.
Here's hoping you can find a suitable place to relocate.
As soon as you know where it is, put up very obvious signage letting people know where you are going.
I suggest this because it recently happened and the owner refused to allow the departing tenant to leave any signs up with their new location.
To those that didn't know they had moved, it looked like they had just disappeared/gone out of business.
Spend as much as you can before and after,on other forms of advertising announcing your relocation.
I just want to know if this is possible and if the tenant has any recourse. The business has been in the same space for 33 years. Yesterday the LL came in and asked us to be out by September since they plan to start their business and need our space. But the business they plan to start is the same we have, so they would build upon our work for their new business.
It seems everyone is assuming your lease is month to month. If it is then the landlord can do this, if it's not he can only do it when the lease is concluded. As mentioned above, make sure you let everyone know you are moving signs etc. Also apply for patent/trademark/copyright protection for whatever you can and what you can afford(and is valuable obviously). And from now on make sure your landlord knows as little as possible about the operations of your business. Also keep an eye on them afterwords.
It seems everyone is assuming your lease is month to month.
Not so. The lease term was twice mentioned in posts.
If the OP does intend to/decide to relocate then obviously as much signage and notice to customers as possible is a given and also don't neglect newspaper advertising and even a direct mailing. After that long in business you may even garner the interest of a reporter from your local newspaper and/or radio/TV station. Then again, maybe after 33 years a hiatus might be in order! Good luck whatever you decide to do.
I'm afraid that aside from his being very unfair and bad after 33 years there is nothing that you can do than go to a printer and have a lot of business cards or other pamlets printed stating you are moving after 33 years.
Afterwards you can hire a person and stand near the road of the store of the LL and have on the sign that you have moved and your new address.
I don't think the owner will like that but it is legal and perfectly allowed to advertise like that. Freedom you have and perhaps the best advertisement as well as local story in the news paper and don't with hold anything, many people may feel bad for your and it can getyour more customers and avoid people to go to the owner of the building.
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