COMMERCIAL, INDUSTRIAL, WAREHOUSE or OFFICE SPACE SUBLEASE AGREEMENT

What a commercial leaseholder needs to do to sublet a commercial property, warehouse, industrial building or office space.

Change is an integral part of every business, and is inevitable. Your need for change may run into problems though. Whether your business requires more room, or you would just like to relocated, you may have trouble if you cannot get out of your current commercial lease agreement. If a new tenant is needed to fill your spot. To do this you will need to enter a Commercial Sublet Agreement.

Here is what you need to know before you take this step:

A COMMERCIAL SUBLEASE- WHAT IS IT? Entering into a Commercial Property Lease means you sign an agreement with the landlord and agree to pay rent, keep the place clean, etc. These leases usually last several years or longer. If you want to change locations, you may have to find someone to occupy your position. Once found, you can allow them to become the tenant in your stead, if they enter into a Commercial Sublease Agreement.

WHEN CAN I USE A COMMERCIAL SUBLEASE? If you are a current tenant in a commercial property, you may be able to assign your lease rights and duties to a third party. To do this, you will first have to ensure the terms of the original commercial lease allow for such a transfer. You may have to ask permission of the property owner (landlord) first, or you may be able to do so without their express consent. In other words, make sure you check your original Commercial Lease Agreement.

HOW DO I ENTER INTO A COMMERCIAL SUBLEASE? You will need to make sure a sublease is possible under the terms of the original lease. Once you are sure you can do it, you’ll need to find a third party, a new tenant. After you find them, you’ll have to draft and enter into a Sublease Agreement for Commercial Property that outlines the rights and duties of each party.

WHAT NEEDS TO BE STATED IN THE SUBLEASE AGREEMENT? The person you enter into the sublease with, essentially becomes the new tenant, so you will have to make sure the terms of the sublease agreement makes it clear and concise who is responsible for what: rent, duration, landlord’s duties and tenant’s duties. All of these concerns must be made clear so no one is confused as to what their rights and responsibilities are.

CAN I ASSIGN PARTS OF THE LEASE? It may be possible to enter into a sublease agreement where you only give partial lease rights to the new party. Once again, you’ll have to make sure it is allowed with your landlord. In these cases, it is even more critical to make sure the intentions, rights and responsibilities of all parties are expressed clearly and accurately.

Like any other legal agreement, your Commercial Sublet Agreement needs to be well written, easy to understand and precise. It doesn’t do any good to anyone if your agreement is incomplete or weighed down with insignificant terms and conditions. Not only that, but you want to make sure all parties involved can understand what their rights and responsibilities are. Making sure your Commercial Sublease states your intentions clearly is the best step you can take when the time for change comes around.