Commercial Lease, Landlord Knows, Still Valid?

[tobyjoe]

Since November of 01 we have been living in a loft in a commercial building. Our landlord is next door (the building is enormous - he holds a lease and uses his half of the divided space as an office. he rents the other half to us), and knows and has known from the beginning that we live there.

We wrote him back in July, telling him that we hoped to end the lease early and, if he needed, find sublettors. We have written and called him several times, always getting 'sounds ok' from him.

Last week we met with him and he said that he would decide by the end of the week whether we needed to find a sublettor. This was the first meeting we've been able to arrange since July, and he told us "don't bother just yet. let me decide what I want to do"

Today I finally contacted him and he says that unless we find a sublettor for the last 2 months of the lease, he keeps our deposit. They would have to be in by Oct 1, which is too soon, most likely.

I'm curious whether his lack of communication and orders not to search for sublettors may give us any legal ground in disputing this.

Also, he hasn't kept our deposit in an escrow account, as required by law (is this the requirement for commercial leases, like it is for residential?)

I wonder if his knowingly renting a commercial space for living voided the lease from the beginning, as well.

Any info is greatly appreciated.

I can't find any links to commercial lease law online.