If a business or individual wants to sublease a portion of the commercial space they are currently leasing, they can use a sample commercial sublease agreement. When an individual or corporation is still under a lease, potential tenants can also use the commercial sublease contract template to sublease the entire property.
Businesses often sublet rental space to subtenants without breaking their leases with landlords or property managers by using a commercial sublease agreement.
Subtenants pay the original tenant’s rent, and they only rent the space until the end of the lease term.
Whether you can’t get out of your lease or not, a sublease may make sense. You may make a quick decision without careful consideration or thorough investigation just to get rid of the financial obligations associated with the contract. You can avoid some of the most common pitfalls associated with subletting by understanding your rights and responsibilities.
Landlords are those who own or manage a property and who offer it for rent. They must give tenants permission to sublease the space.
When the tenant sublets the space, the tenant becomes the sub-landlord. The tenant must still report to the landlord and must abide by the original lease’s terms.
Sub-landlords are responsible for their subtenants and any damage they cause.
A subtenant is a tenant who rents commercial space from the original tenant also called a sub-landlord. There is no lease relationship between the subtenant and the landlord.
A commercial sublease may be needed if:
For a commercial sublease agreement form, please provide:
Identifying the granted rights established in the master lease is critical when planning the available options. Subleasing a commercial space requires ensuring that the original lease permits it. If the lease does not specify a clause to cover subletting, express permission is necessary before moving forward.
When it is clear the tenant can sublease the leased space, it is critical to market the unit so that the tenant can find a suitable subtenant. Commissioning a broker may be beneficial. Brokers can assist with various steps in the process of finding a subtenant, negotiating, developing contracts, closings, and other time-consuming tasks.
Before entering into a contract with the tenant, the next step is to examine his or her qualifications. By conducting an extensive background investigation, the tenant, subtenant, and landlord have protection, and all are on the same page regarding financials.
The sublease document can develop a cohesive agreement after a discussion with all involved individuals regarding the lease. To properly understand what will work for all parties, it can help to have a printed copy of the sublease on hand to go over each clause individually.
To conclude the subleasing process, all parties must accept the proposed register containing contractual terms and obligations. This validates the commitment in law. The tenant and subtenant can occupy a commercial unit after paying all required initial payments. The sub-lessee must receive the keys to the premises, closets, mailboxes, and private spaces.
A valid sublease agreement and landlord consent are necessary to sublet commercial space. Subleasing does not cancel a lease; the tenant remains ultimately responsible for rent and delivery of the property.
To create your document, please provide:
The full name and address of the property owner
Original tenants who entered into a master lease with the landlord and now sublet some or part of the property to subtenants
The full name of the new subtenant (sub-landlord) of the property
Full address and description of the leased property
The sublease’s length of time usually contains a start and end date. Term renewals and periodic tenancies are also here.
Details of the original lease, including start and end dates, rights and obligations of both parties, and any additional clauses, like rules for improvements or alterations.
The cash amount is payable to the sub-landlord every billing period. The sublease typically addresses the utilities in the same way as the master lease.
A sublease agreement should specify the amount of the security deposit, if required.
A lease establishes the minimum rent with the option for the landlord or sub-landlord to increase the rent during the lease term.
When a subtenant remains on the property after the sublease agreement expires, there’s a new rent rate. Sublease agreements usually specify a higher rent rate.
If a tenant can’t pay rent, the landlord may terminate the lease and evict the tenant.
In the event of nonpayment of rent, the sub-landlord can demand immediate payment of the debt or take actions described in the sublease agreement.
Despite the legality of one of the other conditions, a contract provision validates it.
You can download our free commercial sublease agreement template in Word or PDF. Make sure to check your local governing state laws, and if you have any questions about tenancy standards, consult licensed attorneys or better yet, a commercial sublease lawyer. Our free commercial sublease template is available below.
When you use this commercial sublease agreement template, you assume all responsibility and liability. Lawrina retains no legal responsibility for the legal document’s accuracy, reliability, or functionality.
The unprofessional use of this legal form or other templates on this website could result in direct or indirect losses or damages. By downloading, printing, or using this agreement, you accept all liability for any loss or damage you may suffer.
Frequently Asked Questions
An agreement between a subtenant and a sub-landlord (the original tenant) is a commercial sublease, and it contains information about both parties, the original lease, landlord approval, financial obligations (including damage deposits, utilities, and insurance), and any additional terms the parties find relevant.
Before subletting property, the tenant should check the master lease to see if subleasing is possible. If it is, notify the landlord; written permission may be necessary.
Subleasing office space can be a wise move for your company if it is outgrowing its current location, moving to another city, or downsizing due to unexpected circumstances. It might be less expensive than breaking your lease if your lease hasn’t yet expired, and you could offset costs by subletting your commercial space.
