Surrender

Surrender in commercial real estate is the mutual agreement between a landlord and tenant to terminate a lease before its scheduled expiration date. Unlike a default or eviction, a surrender is consensual — both parties agree to release each other from their remaining lease obligations.

Surrender agreements are often negotiated when a tenant needs to exit early and the landlord is willing to accept the space back, sometimes in exchange for a surrender payment or other consideration. The terms of a surrender, including the condition in which the space must be returned, are typically documented in a formal surrender agreement.