What is a break clause in a commercial lease?

A break clause is a contractual right to end a lease early, before the natural expiry date. It's typically available at a specific point in the lease term (e.g. at the 3-year point in a 5-year lease), or sometimes at any time with a minimum notice period. Without a break clause, a tenant is bound to pay rent for the full lease term even if they want to leave.

The critical detail: a break clause is a right, not an automatic event. It only activates if you serve the correct notice, in the correct form, to the correct address, within the specified notice period. Miss the break date by a single day and the right is typically lost -- you're locked in until the next break point or the end of the term, which could be years away. Commercial leases often require 6 months' notice to exercise a break; some require more. The break date is often the most financially significant date in any commercial lease, and it arrives quietly unless you've tracked it.