Rather than buying a building to conduct business operations, numerous Arkansas companies often lease commercial property for their necessary uses. These leases act as binding contracts and can help create a clear relationship between the landlord and the tenant. Of course, commercial lease disputes are not uncommon, and litigation can result when conflict arises between parties.
The owner of a bar in another state is currently facing this type of scenario. Reports indicated that the bar had entered into a lease at its initial location in 1998. The lease was set to run through 2022. However, a development project began in the area, which resulted in the building where the bar operated being demolished. The developers agreed to pay the owner $30,000 a month to account for lost revenue during construction, and the bar was set to open in a different location.
The agreement between the bar owner and developers apparently hinged on the owner's ability to obtain a liquor license to operate at the new location. The owner claims that the license is unobtainable, and because the bar will not be able to operate as intended, the lease will need to be terminated, resulting in a $600,000 fee. The bar owner believes that the developer should pay the termination fee, but the developer claims that the owner did not properly attempt to obtain a liquor license for the new location, which would keep the business operating. The bar owner filed suit against the developer in hopes of obtaining the termination fees.
Commercial lease disputes can come about for any number of reasons. Whatever the reason, it is not unusual for businesses to suffer financially because of the problems. If Arkansas businesses are having issues with their commercial leases, they may wish to consult with knowledgeable attorneys about their legal options.