Office Rental Termination Letter due to Space Limitation

Real estate housing is having a far-off business. Overpopulation results in space limitation. In this way, the trend of flats system is gaining wide acceptance. People opt for it because it is feasible to keep their families in the city where they are doing jobs.

For various kinds of businesses and offices, tenants hire a property from landlords. Sometimes landlords or tenants come across various situations in which they must terminate the contract before time. Space limitation issues can arise for certain offices or businesses.

Sometimes landlord wants his property back for certain reasons like starting a new business or investment as well as demolishing it. Some tenants who have applied for the jobs in foreign get it before the tenancy contract ends, so they must terminate the lease.

The rental contract is in written form by the landlord if it is for more than a year. An Oral lease is also legally used for less than a year. A standard lease is always used by the landlords covering all favorable terms and policies.


I regret to inform you that we would have to terminate the Office rental contract our firm [name] signed with you on [date]. The reason is a space limitation. On our first recon, it seemed that the office space is enough to accommodate our firm but when we started getting the interiors done, our interior designers indicated that there is not enough space and they cannot adjust all the required offices and recreation space, conference halls and meeting room in this space.

We regret the inconvenience we have caused but it seems unavoidable. Please inspect the property before [date] and refund the security deposit by the end of this month.

Looking forward to a swift and positive response.


We have been your tenants since [date] and we have had no issues to date. We found you to be a very accommodating and considerate Landlord. We have always tried to care for the building and get any small repair work done without bothering you.

The issue is that two new departments have been added to our branch and the office space is not sufficient to accommodate the new employees.

We regret to inform you that we would have to terminate the office rental contract. Since according to that contract, in case of termination before [date] a penalty would have to be paid by the party initiating the termination, so we are willing to pay that out of the security deposit.

Please send the inspection team to assess for any damages to the building before [date] and after cutting the repair costs (if any) and the penalty for premature termination of the contract, please refund the remaining security deposit by [date].

Looking forward to a positive response from your side.


Life Zone Pharmacy
Morgan Steve
26 St. Castle Avenue, New York.


Mr.  James Lopez
James Proprietors
Block 12C, Crew Avenue, New York.

Dear [Recipients Name],

I want to inform you that I want to terminate my office rental contract. Per the documentation, it will end on 23rd January 20XX. You were being the most cooperative and caring landlord I have met so far.

In the past two months, I am facing the issues of space limitation in my office. Customers are unsatisfactory and making complaints. I must shift to a wide-area place as soon as possible. I have hired two doctors in my pharmacy due to which patient’s rush is increasing day by day.

I would like to have my security deposit back in the form of cash as I need it urgently. Please let me know if any formalities I must go through. I shall be very grateful to you for your kind cooperation.

Waiting for your response.


Morgan Steve
CEO, Life Zone Pharmacy


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