Breaking a Lease
I appreciate all of your responses to my bankruptcy query. Now, can someone tell me what affect breaking a lease will have on finances? As I mentioned earlier, our business office and warehouse flooded shortly after we moved in two years ago - we got through it and carried on as usual.
Last October we had another flood, not nearly as damaging as the first (roughly 2" of water is all) but a huge inconvenience and money we didn't have was spent on cleanup.
Fast forward to this past Monday, tornados and storm cells hit Houston again - we wade into the offices waist deep in water, the facility sits high from the street and lacked about one foot getting into the office and warehouses. Our new box truck, loaded down with customer computer equipment, was submerged in floodwater.
So we have now flooded 3 times out of 3 years we have been in the offices. The terms of the lease state that flooding has no bearing on the lease, we do not have an out. We want out, the emotional and physical strains on this location are killing us and our business. The building management is unwaivering on our request to move to one of their other locations.
The SBA required us to extend the length of the lease to the term of the loan so we have another 4 years. We are seriously considering walking out on the lease but aren't sure how this will affect our finances going forward. I've never done anything like this. I know we have some real estate guru's and financial experts on the forum, does anyone have any insight they can lend?