Commercial Sublease

Commercial Sublease

If you wish to sublease space to another business, this is the form you need.  You can use this form to establish a relationship with a subtenant if you want to:

  • turn over part of your space to another tenant while you continue to occupy the rest of the space
  • lease out all of your space for a while, but return to the space during the term of your original lease.

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See below the form for a full product description.

Parties

This sublease is made by Sublandlord, , with a principal place of business at , and Subtenant, , with a principal place of business at .

Property Subleased 

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all of premises

Sublandlord is subleasing to Subtenant the premises at .

part of premises

Sublandlord is subleasing to Subtenant part of the premises at , specifically .

Original Lease

A.   This subtenancy is subject to all the terms and conditions of the attached Original Lease dated  between  Landlord, and , Tenant, except for the following: .

B.   Except as specified in this sublease, Subtenant will perform and observe all of the terms and conditions of the Original Lease as if Subtenant were named as Tenant in the Original Lease. Subtenant will do nothing that will create a breach by Sublandlord of any of the terms or conditions of the Original Lease.

Term of Sublease

This sublease begins on  and ends on .

Rent

Subtenant's first rent payment will be due on  in the amount of $. After that, Subtenant will pay rent of $, in advance, on the  day of each month.

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annual rent increase

Rent will increase each year, on the anniversary of the starting date in Paragraph 3, as follows: 

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option to extend

Option to Extend Sublease

Sublandlord grants Subtenant the option to extend this lease for an additional  years. To exercise this option, Subtenant must give Sublandlord written notice on or before .  Subtenant may exercise this option only if Subtenant is in substantial compliance with the terms of this sublease. Subtenant will lease the premises on the same terms as in this sublease except as follows: .

Security Deposit 

Subtenant has deposited $ with Sublandlord as security for Subtenant's performance of this sublease. Sublandlord will refund the full security deposit to Subtenant at the end of the sublease if Subtenant returns the premises to Sublandlord in good condition (except for reasonable wear and tear) and Subtenant has paid Sublandlord all sums due under this sublease. Otherwise, Sublandlord may deduct any amounts required to place the premises in good condition and to pay any sums due under the sublease.

Notices From Landlord

If Landlord notifies Subtenant  that Subtenant is in breach of any terms or conditions in the Original Lease, Subtenant will immediately notify Sublandlord in writing. Subtenant will promptly cure any breach.

Similarly, if Landlord notifies Sublandlord that Subtenant is in breach of the terms or conditions of the Original Lease, Sublandlord will immediately notify Subtenant in writing. Subtenant will promptly cure any breach.

Subletting and Assignment

Subtenant will not assign this sublease or further sublet any part of the premises without the written consent of both Sublandlord and Landlord. Sublandlord will not unreasonably withhold such consent.

Insurance

A.   Subtenant and Sublandlord release each other from any liability to the other for any property loss, property damage, or personal injury to the extent covered by insurance carried by the party suffering the loss, damage, or injury.

B.   Subtenant will carry public liability insurance; this insurance policy will include Sublandlord and Landlord as additional insured parties. The public liability coverage for personal injury will be in at least the following amounts:

  • $ per occurrence
  • $ in any one year

C.   Subtenant will give Sublandlord a certificate of insurance for all insurance policies that this sublease requires Subtenant to obtain.

Condition of Premises

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modifications or improvements

Before the sublease term begins, Sublandlord, at Sublandlord's expense, will make the following modifications or improvements to the premises: 

"as is" Subtenant accepts the premises in "as is" condition. Sublandlord will not make any modifications or improvements before the sublease term begins.
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require landlord's consent

Landlord's Consent

This sublease will not be effective unless Landlord signs this sublease.
 
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mediation

Mediation 

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preselected mediator If a dispute arises, the parties will try in good faith to settle it through mediation conducted by .
to be agreed upon If a dispute arises, the parties will try in good faith to settle it through mediation conducted by a mediator to be mutually agreed upon.

The parties will share the costs of the mediator equally. Each party will cooperate fully and fairly with the mediator and will attempt to reach a mutually satisfactory compromise to the dispute. If the dispute is not resolved within 30 days after it is referred to the mediator, either party may take the matter to court.

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losing party pays attorneys' fees

Attorneys' Fees

If either party brings a legal action arising out of a dispute over this agreement, the losing party will reimburse the prevailing party for all reasonable costs and attorneys' fees incurred by the prevailing party in the lawsuit.

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additional agreements

Additional Agreements 

Sublandlord and Subtenant additionally agree that .

Entire Agreement

This is the entire agreement between the parties. It replaces and supersedes any and all oral agreements between the parties, as well as any prior writings.

Successors and Assignees

This agreement binds and benefits the heirs, successors, and assignees of the parties.

Notices

All notices about this sublease must be in writing and must be delivered either in person or in a way that provides written documentation of delivery -- for example, certified U.S. mail or a delivery service that provides evidence of delivery.

Governing Law

This agreement will be governed by and construed in accordance with the laws of the state of .

Counterparts

This sublease may be signed by the parties in different counterparts and the signature pages combined will create a document binding on all parties.

Modification

This sublease may be modified only by a written agreement signed by all the parties.

Waiver 

If one party waives any term or provision of this sublease at any time, that waiver will be effective only for the specific instance and specific purpose for which the waiver was given. If either party fails to exercise or delays exercising any of its rights or remedies under this sublease, that party retains the right to enforce that term or provision at a later time.

Keep Together

Severability

If any court determines that any provision of this agreement is invalid or unenforceable, any invalidity or unenforceability will affect only that provision and will not make any other provision of this agreement invalid or unenforceable. Provisions shall be modified, amended, or limited only to the extent necessary to render them valid and enforceable.


, a 
By: 
Title: _______________________________________

Signature:______________________________________
Date: _________________________________________

 
 
, a 
By: 
Title: ________________________________________

Signature:_______________________________________
Date: __________________________________________

 

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include landlord signature


By: 
Title: _______________________________

Signature: _____________________________
Date: _________________________________

 

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1-Year Subscription

Price: $24.99

Use this form if you are leasing commercial property and want to turn over a portion of it to a subtenant, or need to rent out the entire space for a short time while you're away.

Important to Know

  • You will still be obligated to the terms of your original lease with your landlord -- even if your subtenant doesn't pay the rent owed to you.
  • Your lease most likely requires that you obtain permission from your landlord to sublease space -- this form includes a clause that refers to the landlord’s consent, for which you should use a separate form (Landlord’s Consent to Commercial Sublease)
  • If you want to obligate your subtenant to responsibilities not specified in this sublease, you may need to use a full-blown lease and modify it accordingly

If you plan to sublease all of your space and not return to it, use Assignment of Commercial Lease  instead.

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