SUBLET AGREEMENT for COMMERCIAL, INDUSTRIAL, WAREHOUSE or OFFICE SPACE

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

Sublease Agreement

Change is necessary in the life of every business. Whether you just want to relocated or your business outgrows it's current premises, your need for change may encounter problems if you cannot leave your current Commercial Lease Agreement. For whatever reason your moving on, you may need to find a new tenant to fill your place. For this to be legally binding, then you will need to enter what is called a Sublease Sublet Agreement. Listed below are just a few of the key points of consideration before entering into a Sublet Agreement.

A SUBLET AGREEMENT- WHAT IS IT?
When you rent a property for commercial use, or with intent for commercial use, you have to enter what is known as a Commercial Property Lease. Due to clausing and terms, these usually last for a number of years and when you want/need to move from the premises, you will need to find a tenant to fill your spot, and enter into what is known as a Commercial Sublease Agreement.

A SUBLET AGREEMENT-WHEN CAN I USE IT?
To assign your rights and responsibilities to a third party, if allowable from the original lease or with explicit consent from the landlord, you will need to enter a sublease agreement. This type of sublease contract is only valid if the original commercial lease agreement states so, or there is explicit permission granted from the landlord.

HOW DO I ENTER INTO A SUBLET AGREEMENT?
The permission from the landlord or consent given in the original lease is the first step. Finding a tenant willing to take your position is the next step. After these are done, you will have to draft and enter into a Sublease Agreement for Commercial Property.

WHAT NEEDS TO BE STATED IN THE SUBLET AGREEMENT?

The person you enter into the sublease contract becomes the new tenant in essence, and the new sublease agreement will have to make it clear and concise who is responsible for what, such as rent, duration, landlord's duties, tenants duties etc. All of these duties must be made clear so that there is no confusion when it comes to responsibilities and rights.

CAN I ASSIGN PARTS OF THE LEASE?

It may be possible to enter into a sublease agreement where you only give part of the lease rights to the new party. Again, you’ll have to make sure it is ok with your landlord, but partial assignments may be possible. In these cases, it is even more important to make sure the intentions of all parties are expressed clearly and accurately. If you first consult with your landlord, it may be possible to assign only parts of the lease to the third party. It is essential that this is in the original contract, OR explicit permission is given by the landlord.

Like any other legal agreement, your Sublet Agreement needs to be well drafted, easy to understand and precise. It does no one any good if your agreement is incomplete or weighed down with draconian terms and conditions. Not only that, but you want to make sure all parties involved can understand what their rights and obligations are. Making sure your Commercial Sublease states your intentions clearly is the best step you can take when the time for change comes around.