Commercial Sublease Agreement

A Commercial Sublease Agreement is a form utilized if a business or individual is attempting to sublease part of a commercial space that they are currently leasing. The form is also utilized to sublease a full property when an individual or corporation still holds a lease.

Elements of a Commercial Sublease Agreement

  • Date of agreement
  • Name and address of both parties involved in the Sublease Agreement
  • Physical location of the property
  • Terms of when the sublease begins and terminates
  • Date payment is due
  • Payment/Rent amount
  • Security deposit, late fees and penalties incurred (not paid timely, returned payments, etc.)
  • Acceptable forms of payment (PayPal, cash, check, credit card, etc.)
  • Responsible party of all services, maintenance and utilities
  • Grounds for termination of contract, expenses that may be incurred and who is responsible for payments and potential legal action
  • Communal or shared space provisions
  • Parking and visitor policies
  • Emergency and evacuation procedures
  • Insurance requirements
  • Acceptable use of the premises

How to Sublease Commercial Space

1. Read your original commercial lease

It will be critical to ensure that the original commercial lease agreement is reviewed in full. It is common to find provisions against subletting or subleasing. Subleasing a commercial space that has provisions against it could be punishable by law, have penalties incurred and cause further issues if the sublease is executed to a (Sub)tenant who is not aware of the issue.

2. Ask for permission from landlord

Once the original contract has been reviewed, the current tenant should contact the landlord. This will ensure a healthy professional relationship remains and the landlord is kept abreast of the current plans to sublease.

3. Disclose all terms and conditions with subleasee

Individuals or entities interested in subleasing should consult legal guidance on the sublease contract. Upon the contract being created  and deemed legal, the current tenant should review the requirements and all provisions with the party interested in subleasing.

4. Sign a Commercial Sublease Agreement

Upon no issues being identified by either party and the contract not requiring additional changes, each party should date and sign the Sublease Agreement.

5. You are now the (Sub)landlord

After the form is signed the property can be considered subleased and the individual now becomes a (Sub)landlord. They still remain overall responsible for the space. The individual who signed the document is now considered the (Sub)tenant.

Can I sublease my commercial space?

A commercial space may be subleased. It will be crucial to review the current agreement along with pertinent state laws to ensure the validity and ability to sublease.

Am I still responsible after subletting my commercial space?

Any parties subleasing or subletting a commercial space is still wholly responsible for the space. While another individual or party is responsible for the portion that was subleased, the principal tenant is fully responsible for any activities, issues, payments or requirements they agreed upon.  The original landlord will still hold the lessee accountable and responsible and there is little to no legal relationship between the (Sub)tenant and the original landlord.