There are various reasons why a business may wish to exit their lease early, for example,  the type and size of the premises is no longer appropriate, Covid-19 has impacted business, or they simply wish/need to relocate.

Generally, a commercial lease can only be terminated at the agreed lease date unless there is a situation under the "no access" period where the property is totally or partially destroyed or damaged after a natural disaster.
Exiting a lease without the landlord’s agreement is a breach of the lease.
Once tenants understand their obligations under their lease, they should discuss the options with their landlord. Communication between tenant and landlord is paramount to moving forward. Options include assigning the lease to another party or sub-leasing, and associated costs such as real estate and legal fees would usually be paid by the existing tenant.
Assigning the lease is where the tenant (or "assignor") finds another business to take over the lease. That new tenant (or "assignee") takes on the responsibility of paying the rent to the landlord and following the terms of the existing lease, including the obligation to pay for reinstating or redecorating the premises if required. If the assignee fails to pay the rent the assignor remains responsible until the end of the current lease term.   
Sub-leasing is where the exiting tenant (or "sub-lessor") finds another business, the sub-lessee, to lease the premises. The agreed rental and terms are between the sub-lessor and sub-lessee, but the existing lease obligations still remain with the original tenant. If the premises are too large, an option may be to sub-lease part of the premises to another party.
In both of these options, the landlord has 10 days to approve an assignment or sub-lease, but approval cannot be unreasonably withheld.
Another solution is for the tenant to surrender the existing lease and another business signs a new lease. This option is likely to involve costs to the tenant, as the landlord has taken on the risk of vacant premises. However, the landlord may only do this once a new tenant has been found or could request a compensatory amount which mitigates their loss.
If you have any questions or concerns about your lease, please give me a call or drop me a line. In any scenario, we also recommend that all parties seek professional legal advice.

Phone: 021 684 775
Email: janet.marshall@colliers.com