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Commercial Sublease Agreement

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Commercial Sublease Agreement

Commercial Sublease Agreement Template


This Commercial Sublease Agreement (“Agreement”) is entered into on [Date], by and between:

Sublessor (Current Tenant): [Full Legal Name / Business Name]
Address: [Address]
Contact: [Phone, Email]

Sublessee (New Tenant): [Full Legal Name / Business Name]
Address: [Address]
Contact: [Phone, Email]

Landlord (Consent Required): [Full Legal Name / Company Name]
Address: [Address]
Contact: [Phone, Email]

Together referred to as the “Parties.”


1. Premises

The Sublessor subleases to the Sublessee the commercial space located at [Property Address], consisting of [Square Footage / Description of Area].


2. Term

The sublease term shall begin on [Start Date] and end on [End Date], unless earlier terminated under this Agreement. Renewal requires written consent of all parties.


3. Rent and Payments

  • Monthly rent: $[Amount], payable to [Sublessor/Landlord] on or before the [Day] of each month.

  • Security deposit: $[Amount], refundable subject to conditions in Section 10.

  • Late fees: [Specify amount or % after X days overdue].


4. Use of Premises

The Premises shall be used exclusively for [Authorized Use, e.g., office, retail, industrial]. The Sublessee may not change use without written consent of the Sublessor and Landlord.


5. Compliance with Original Lease

This Sublease is subject to all terms of the Original Lease dated [Original Lease Date] between Sublessor and Landlord. Sublessee agrees to comply fully with those terms. A copy of the Original Lease is attached as Exhibit A.


6. Maintenance and Repairs

  • Sublessee shall keep the Premises in good order and condition.

  • Sublessor remains responsible for structural repairs unless otherwise stated in the Original Lease.

  • Damage caused by Sublessee must be promptly repaired at their expense.


7. Utilities and Services

Unless otherwise agreed, the Sublessee shall be responsible for payment of utilities, including electricity, water, gas, internet, and waste disposal, either directly or as reimbursed to the Sublessor.


8. Alterations and Improvements

Sublessee may not make alterations without prior written consent of both Sublessor and Landlord. Any approved improvements shall remain with the Premises unless otherwise agreed.


9. Insurance

Sublessee shall maintain liability insurance of at least [Coverage Amount], naming both Sublessor and Landlord as additional insureds. Sublessee must provide proof of insurance prior to occupancy.


10. Security Deposit

The Sublessor shall hold the security deposit to cover damages or unpaid rent. The deposit (minus deductions, if any) shall be returned within [X days] after sublease termination.


11. Indemnification

Sublessee agrees to indemnify and hold harmless the Sublessor and Landlord against all claims, damages, or liabilities arising from the Sublessee’s use of the Premises.


12. Assignment and Subletting

Sublessee may not assign this Sublease or further sublet the Premises without prior written consent of the Sublessor and Landlord.


13. Termination

This Agreement may be terminated by:

  • Expiration of the sublease term.

  • Written agreement of all Parties.

  • Default by Sublessee, including non-payment of rent or breach of obligations.


14. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [State/Country].


Signatures

Sublessor: ______________________________ Date: _________
Name/Title: [Full Name, Title]

Sublessee: ______________________________ Date: _________
Name/Title: [Full Name, Title]

Landlord (Consent): _______________________ Date: _________
Name/Title: [Full Name, Title]

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Commercial Sublease Agreement

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COMMERCIAL SUBLEASE AGREEMENT FAQ


What is a Commercial Sublease Agreement?

A Commercial Sublease Agreement is a legal document that allows an existing tenant (the sublessor) to lease out all or part of their rented commercial premises to another tenant (the sublessee). The arrangement must comply with the terms of the original lease and often requires landlord approval.


Why is a Commercial Sublease Agreement important?

It protects all parties by clearly defining responsibilities, rent payments, use of premises, and liability for damages. It also ensures that the original tenant remains in compliance with the primary lease while providing the subtenant with secure occupancy rights.


When should you use a Commercial Sublease Agreement?

Use it when an existing tenant wishes to rent out unused office, retail, or industrial space, either temporarily or long-term, while still bound by the original lease.


What should a Commercial Sublease Agreement include?

It should identify the parties, describe the premises, set the sublease term, specify rent and payment details, outline maintenance obligations, and require compliance with the original lease terms.


Who is liable under a Commercial Sublease Agreement?

Generally, the original tenant remains liable to the landlord for compliance with the lease. The subtenant is directly responsible to the sublessor under the sublease, unless the landlord consents to direct responsibility.


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