A commercial sub-lease is an agreement between two tenants for the occupation of a commercial property, allowing the original lessee to maintain their lease agreement with the property owner. It can be used when a business owner needs to vacate the property before the lease period has expired or when they have leased more space than they need. However, it is important to check the terms of the original lease agreement before offering a sublease.
A commercial sub-lease is a tenant-to-tenant agreement created and signed to govern the occupation of a commercial property. Usually, leasing commercial property involves two parties: a person or company that owns commercial property and the person or company that agrees to lease that property. A commercial sub-lease, however, adds another part to this deal. In essence, a commercial lease is an agreement that allows a person or business to rent from the original lessee of a commercial lease.
Instead of having a contract with the owner of a commercial property, a commercial sublet has a contract with the original lessee. The original tenant does not cancel or otherwise waive the lease agreement they signed with the property owner. Instead, he has two contracts. It maintains the original lease agreement it has with the owner and has a separate agreement with the commercial sub-lease.
In some cases, commercial subleases are used when a business owner needs to vacate the rental property before the lease period has expired. For example, an entrepreneur can rent a shop window by signing a two-year lease. After several months, he may decide that he wants to close his business or move it to a new location. Trying to end the lease early could prove problematic, so he might decide to rent the property to a new tenant instead. When this type of deal goes smoothly, the business owner finds a way out of paying rent on a property he does not want to use, without breaking the lease.
Sometimes a businessman plans to use commercial space that he has leased but does not need to. This is another situation where a commercial sublet can work well. For example, if a commercial lessee is leasing office space but finds she only needs half of the space he has rented, he can offer the remaining space to a sublectorate. This allows him to stay in the rented space without having to pay the rent himself.
When an original lessee intends to offer a prospective lessee a commercial sublease, it is important that they carefully check the terms of the original lease agreement. Some commercial lease agreements may prohibit subletting or require the original lessee to obtain the landlord’s consent first. If the terms of the original lease prohibited subletting, a commercial sublease would be void and could result in legal action.
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