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Commercial Sublease Agreement Template – California
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Commercial Sublease Agreement Template
1. Premises and Space Boundaries
The Sublessor subleases to the Sublessee the commercial space located at [Property Address], consisting of [Square Footage / Description of Area].
Premises Detail: [Suite/Unit], [Floor], [Included rooms/areas], [Excluded areas, if any].
Delivery Condition: [Condition at delivery] and [items included: fixtures/furniture/equipment, if any].
2. Parties and Landlord Consent
This Commercial Sublease Agreement ("Agreement") is entered into on [Date], by and between Sublessor (Current Tenant): [Full Legal Name / Business Name], Sublessee (New Tenant): [Full Legal Name / Business Name], and Landlord: [Full Legal Name / Company Name].
Sublessor Contact: [Address], [Phone], [Email].
Sublessee Contact: [Address], [Phone], [Email].
Landlord Contact: [Address], [Phone], [Email].
Consent Status: [Landlord consent required prior to occupancy / consent attached as Exhibit B / consent pending].
3. Term
The sublease term shall begin on [Start Date] and end on [End Date], unless earlier terminated under this Agreement.
Renewal: [Renewal requires written consent of all Parties].
4. Rent, Payments, and Deposit
Monthly rent: $[Amount], payable to [Sublessor/Landlord] on or before the [Day] of each month.
Security deposit: $[Amount], refundable subject to Section 10.
Late fees: [Specify amount or % after X days overdue].
Payment Method: [ACH/check/wire/portal], Payee: [Payee Name], Remit To: [Address/Link].
5. Use of Premises (Category → Subtype)
Authorized Use Category: [Office/Retail/Industrial/Service/Other].
Authorized Use Subtype: [Describe authorized operations].
Use Limitations: [Hours], [Signage], [Deliveries], [Noise], [Hazardous materials restrictions, if any].
Change of Use: The Sublessee may not change use without written consent of the Sublessor and Landlord.
6. Original Lease Compliance
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 applicable terms of the Original Lease.
Exhibit A: [Copy of Original Lease attached / access reference provided].
7. Operations and Risk Allocation
Maintenance and Repairs: Sublessee shall keep the Premises in good order and condition; damage caused by Sublessee must be promptly repaired at Sublessee’s expense.
Structural Repairs: Sublessor remains responsible for structural repairs unless otherwise stated in the Original Lease.
Utilities and Services: Sublessee shall be responsible for utilities [electricity/water/gas/internet/waste disposal], [directly / reimbursed to Sublessor].
Alterations and Improvements: Sublessee may not make alterations without prior written consent of both Sublessor and Landlord; approved improvements remain with the Premises unless otherwise agreed.
Insurance: Sublessee shall maintain liability insurance of at least [Coverage Amount], naming both Sublessor and Landlord as additional insureds; proof required prior to occupancy.
Indemnification: Sublessee agrees to indemnify and hold harmless the Sublessor and Landlord against claims arising from Sublessee’s use of the Premises.
Assignment and Subletting: Sublessee may not assign or further sublet without prior written consent of the Sublessor and Landlord.
Termination: This Agreement may be terminated by expiration, written agreement of all Parties, or Sublessee default including non-payment or breach.
8. Access Credentials Register (Table)
Credential Type | Identifier | Issued To | Issue Date | Return Date |
[Key] | [Key #] | [Name] | [MM/DD/YYYY] | [MM/DD/YYYY] |
[Badge] | [Badge ID] | [Name] | [MM/DD/YYYY] | [MM/DD/YYYY] |
[Code] | [Code/Device] | [Name] | [MM/DD/YYYY] | [MM/DD/YYYY] |
[Parking Pass] | [Pass #] | [Name] | [MM/DD/YYYY] | [MM/DD/YYYY] |
9. Handover Materials and Evidence Index
Handover Evidence: [Photos], [Video], [Walkthrough report], [Inventory list], [Other].
Evidence Identifier(s): [File name(s)/link(s)/folder path].
Handover Acknowledgment: [Date/time of handover] and [names of attendees].
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 and surrender.
Deductions Support: [Describe documentation for deductions: invoices/photos/statement].
11. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of California.
12. Signatures
Sublessor: ______________________________ Date: [Date] Name/Title: [Full Name, Title]
Sublessee: ______________________________ Date: [Date] Name/Title: [Full Name, Title]
Landlord (Consent): _______________________ Date: [Date] Name/Title: [Full Name, Title]
Access Administrator (Acknowledgment): _______________________ Date: [Date] Name/Title: [Full Name, Title]
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Commercial Sublease Agreement Template – California
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For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
California Commercial Sublease Agreement Template FAQ
How can a sublessor define the exact space being subleased?
Use a specific premises description that includes the suite or unit number, approximate square footage, and any included rooms, storage areas, or parking rights. If only part of a larger suite is subleased, describe boundaries in plain terms and reference a floor plan or marked diagram as an exhibit. Clear boundaries reduce day-to-day disputes about shared areas, access, and responsibility for damage. They also make move-out and deposit reconciliation more predictable because everyone knows what the sublessee controlled.
What should be documented at the handover to reduce disputes later?
A short handover record can include photos, a walkthrough summary, and an inventory list for any items that remain with the premises. If access credentials are issued, list them in a credential register with issue and return dates. These records help the parties confirm what was delivered and in what condition, and they can simplify end-of-term conversations about missing keys, damaged items, or access devices that were not returned. AI Lawyer templates often include an evidence index to keep these records organized.
Who should receive rent in a commercial sublease?
Many subleases require the sublessee to pay rent to the sublessor, because the sublessor remains the tenant under the original lease. Some arrangements direct payment to the landlord, especially where the landlord prefers direct remittance or where the original lease structure supports it. The key is that the agreement clearly states the payee, due date, payment method, and any required payment reference. Clear payment mechanics reduce the risk of late fees and avoid confusion about whether a payment was credited.
How should permitted use be written so it is not too broad or too narrow?
A good approach is to describe use as a category plus a subtype, then add the operational limits that matter for the building, such as hours, deliveries, signage, or noise. This format is often clearer than a single broad phrase like “retail,” because it tells the parties what operations are expected. If the sublessee wants flexibility, the agreement can require written consent for a use change so the parties can approve changes without rewriting the entire sublease.
What is the purpose of listing access credentials in the agreement packet?
Access credentials are common friction points at move-out. A register creates a clear list of what was issued, to whom, and when it must be returned. It also helps building management and the sublessor control security and reduce the chance of unauthorized access after termination. If there is a dispute about missing keys or unpaid access device fees, the register provides a simple reference that can be compared against building records or internal logs.
How does the original lease affect the sublease?
A sublease usually makes the sublessee responsible for complying with applicable terms of the original lease, because many building rules and restrictions originate there. The sublessor should avoid granting rights that conflict with the original lease, since the sublessor may not have authority to override the landlord’s requirements. Including the original lease date and attaching a copy or providing an access reference helps ensure the sublessee can review the rules that will govern occupancy.
What should the parties do at the end of the term to close out cleanly?
The agreement should include surrender expectations, a key and credential return process, and a deposit return timeline. If improvements were approved, the parties should confirm whether the improvements remain or must be removed. A move-out walkthrough record with photos can help align expectations and support any deposit deductions. Clear closeout documentation reduces the chance that end-of-term issues become a prolonged dispute over condition, missing items, or unpaid amounts.
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