Tenant Default
Commercial Tenant Default in New Jersey: What Owners Can Do
Plain-language steps when a commercial tenant stops paying — and how a broker helps re-lease. Not legal advice.
For northern NJ owners whose commercial tenant has stopped paying rent or broken other lease terms. This page is general information, not legal advice. Talk to a New Jersey attorney before you send notices, change locks or file in court.
Call Jonathan Libock at (201) 694-6463 for a broker view of re-leasing. For legal strategy, call your attorney first.
First steps (with your attorney)
Read the default, notice, cure and remedies sections of the lease
Document missed payments, bounced checks and any other breaches
Confirm where and how notices must be delivered
Ask counsel before lockouts, utility shutoffs or removing tenant property
Check whether a personal guaranty or letter of credit still helps
How a broker helps after you control the space
Written opinion of rent for the vacant suite
Marketing plan and listing under a written agreement
Outreach to tenant brokers with a 50/50 fee share
Coordination on timing so showings do not conflict with any remaining tenant access rights
Related
This guide does not cover residential eviction rules. Apartment defaults follow different statutes.
Questions owners ask
What should I do if a commercial tenant defaults in NJ?
Read the lease default and notice clauses, document the missed payments, and talk to a New Jersey real estate attorney before changing locks or shutting off utilities. A broker can help remarket the space once you have the legal right to re-lease.
Can AcreX help with a defaulting tenant?
AcreX is a brokerage, not a law firm. We can review the lease with you at a high level, help estimate re-leasing time and rent, and list the space when you are ready. Legal notices and court filings belong with your attorney.
Should I lock the tenant out?
Self-help lockouts are risky under New Jersey law for many commercial situations. Confirm the lease and current case law with your attorney before any lock change or utility shutoff.
How long does it take to re-lease after a default?
It depends on the space type, condition, rent and market. AcreX can give a written opinion of rent and a marketing plan once you control the space.
What does AcreX charge to re-lease the space?
The published leasing fee: 5% of total base rent for years 1–5 and 2.5% after; above 50,000 SF, 4% and 2% on that part. In New Jersey commissions are negotiable.
More owner questions: AcreX FAQ.
About the broker
Jonathan Libock is the founder and principal broker of AcreX Commercial Real Estate in Caldwell, NJ. He has a decade of experience in commercial real estate, including time at DR Properties, a New York City development brokerage. He specializes in industrial and multifamily land development and also works on development sites in Southeast Florida. Licensed real estate broker in New Jersey (#1757237) and Florida (#BK3462244). AcreX Realty LLC, Licensed Real Estate Broker. Licensure does not imply endorsement.
AcreX Realty LLC is a licensed NJ commercial real estate broker with published fees, at 307 Bloomfield Ave, Caldwell, NJ 07006. Call (201) 694-6463. General information, not legal or tax advice.