The most common shock in a store closure is the lease. Owners assume locking the door ends the obligation. It usually does not — and if you personally guaranteed it, the obligation can follow you for years. Here is how commercial-lease exit actually works.

Your four exit paths

PathWhat it costsBest when
Ride out the termRent until expiry; lowest conflictYou can sublet or wind down slowly
AssignmentLandlord fee; new tenant takes overLease allows assignment; market is healthy
SubleaseYou stay liable; collect from subtenantYou want income but can’t assign
Buyout / terminationLump sum negotiatedPG at risk; want a clean break

The duty to mitigate

In most states, after you surrender the premises, the landlord must use reasonable efforts to re-rent. You are generally liable for rent until a replacement tenant is found (or the original term ends), plus any difference if the new rent is lower — not automatically the entire remaining balance. A few states and some lease clauses alter this, so read your lease and your state rule. Document your surrender in writing and request the landlord’s mitigation efforts.

Personal guarantee: if you signed a PG, the landlord can pursue you personally for any unmitigated shortfall — including your home equity in the worst cases. A negotiated buyout that releases the PG is often worth more than the cash it costs.

Use the Lease Exit Calculator to compare riding out, terminating with a fee, and subleasing — and see which leaves you owing the least after mitigation.

Sources: commercial-lease law summaries (duty to mitigate by state), NOLO and legal-clinic lease-exit guides, commercial real-estate brokerage data. Retrieved 2026-08-13. State law varies; this is not legal advice.