Case Result: 95% Recovery via Surrender and Consent Judgment

In a recent matter, a commercial tenant operating a laundromat in a neighborhood shopping center had accrued approximately $1.425 million in rent and additional rent under a long-term lease. The tenant was no longer a viable operator, but it had not surrendered possession. The landlord could not re-lease the space, and arrears continued to mount.

Step One: Confirm the Claim

We began by confirming the enforceability of the lease and guaranty. The documents were clear, the arrears were well documented, and there were no credible defenses raised in writing. The landlord’s legal position was strong.

Step Two: Control the Timeline

Rather than allowing the matter to drift, we focused communications on a single question: was the tenant going to continue operating, or was an exit inevitable? Once it became clear that continued operations were not realistic, the priority shifted to regaining possession quickly and cleanly.

Step Three: Present the Full Exposure

We documented and presented the full arrears exposure, making clear that lateness and delay would only increase the total. The guarantor understood that allowing the space to remain in limbo was not a neutral choice—it was an increasingly expensive one.

The Result

The tenant and guarantor agreed to surrender the premises, return the keys, and allow the landlord to move forward with re-letting. As part of the resolution, they also agreed to a consent judgment of approximately $1.375 million—nearly 95% of the amount owed—without extended litigation or trial.

What This Means for Landlords

Every case is fact-specific, but the principles carry over: confirm the claim, take control of the timeline, present the full exposure, and resolve before leverage erodes. When done correctly, it is possible to restore income potential and preserve a strong monetary outcome.

Download the Lease Exit Playbook

If you are facing a similar long-term lease default, you can schedule a Strategic Lease Exit Consultation ($200) to review your lease, guaranty, and current arrears posture.

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Disclaimer: This article is for informational purposes only and does not constitute legal advice. Past results do not guarantee similar outcomes. Results depend on the specific facts and applicable law. Reading this article or downloading the Playbook does not create an attorney-client relationship.

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