While there are many similarities between commercial and residential leases, there are also some extremely important differences. These differences apply in most cases to subletting with the same force. A commercial sublease is a stand-alone agreement between a tenant who already holds a lease agreement for a commercial property (subtenant) and another party wishing to occupy part or all of the commercial property (subtenant). You can use our legal documents and resources to assist with this process. Check out our commercial sublease template to create, download and print a custom commercial sublease agreement online in minutes. As the original tenant, you remain 100% responsible for the rent and all other obligations arising from the original commercial lease agreement. Now, please list the data of the sublease agreement. These are the data on which the lease begins and ends. It shall also include the total amount of the duration for which the agreement is to enter into force. By clarifying the dates, you leave no room for misunderstandings. Subletting is also flexible for companies in volatile sectors or for companies that are not sure about the future according to COVID. This is due to the fact that a sublet allows tenants to reduce or reduce in the blink of an eye. Stopping the rent below the price you pay is often the only way to attract businesses to the property.
Nevertheless, even a rental below market value can reduce monthly costs. Pricing to attract businesses while keeping money on the table is sometimes a challenge. Knowledge of the market of a given sector or site is extremely important for the setting of sublease prices. By subletting your space in these situations, you can avoid either paying double rent or paying rent for unused land. The first question many tenants ask themselves when they want to move or close an office is, “Does my landlord let me terminate the lease?” In most cases, the owner`s answer is a clear “no”,” or if they have to consider dismissal, it requires a heavy penalty of dismissal. As a rule, the best solution is subletting, as the chances of a higher recovery of the dollar are greater. There is subletting when the original owner does not rent the premises to you, but there is another nature or organization between you and the owner. That is, the owner rents to someone else, and then that person rents you. Subletting is common in commercial and residential real estate. However, there are a few special considerations that you should keep in mind when entering into a commercial sublease agreement.
Subtenant: The subtenant is the person who rents the commercial space by the original tenant, also known as Sublandlord. The subtenant makes rental payments and reports any rental or property issues to the Sublandlord. The subtenant`s lease exists with the tenant/sublandlord and not with the owner or manager of the landlord….