Commercial Sublease Termination Agreement Template

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This Commercial Sublease Termination Agreement (the “Termination Agreement”) is made as of [Effective Date] by and between:

Sublandlord (Tenant): [Sublandlord Legal Name], address: [Address] (“Sublandlord”)

Subtenant: [Subtenant Legal Name], address: [Address] (“Subtenant”)

Premises: [Property address + suite/unit + description] (the “Premises”)

Sublease Date: [Sublease Date] (the “Sublease”)

Prime Lease Date (Optional): [Prime lease date] (between Landlord and Sublandlord)

1. Termination

1.1 The Parties agree to terminate the Sublease effective [Termination Date] (the “Termination Date”).

1.2 The Subtenant will surrender possession of the Premises on or before the Termination Date in accordance with this Termination Agreement.

2. Rent and Charges; Prorations

2.1 Final Rent Paid Through: [Date].

2.2 Proration (If Needed): Rent and recurring charges will be prorated as of the Termination Date.

2.3 Outstanding Amounts (If Any):

☐ None

☐ Subtenant owes: $[Amount] for [rent/CAM/utilities/other]. Due by [Date].

☐ Sublandlord owes: $[Amount] for [deposit refund/credit/other]. Due by [Date].

3. Security Deposit

3.1 Deposit Amount: $[Amount].

3.2 Deposit Handling (Select One):

☐ Returned to Subtenant within [__] days after move-out, less lawful deductions

☐ Applied to outstanding amounts (describe): [Details]

☐ Retained by Sublandlord due to: [Damage/unpaid charges/other]

☐ Other: [Explain]

4. Condition, Removal, and Surrender

4.1 Subtenant will leave the Premises in: ☐ broom-clean condition ☐ condition required by Sublease ☐ other: [Standard].

4.2 Subtenant will remove personal property and trade fixtures: ☐ Yes ☐ No (list items left behind).

4.3 Keys/access cards must be returned by: [Date/Time].

4.4 Walk-Through (Optional): The Parties will conduct a move-out inspection on [Date/Time].

5. Release of Claims (Optional)

5.1 Upon full performance of this Termination Agreement, the Parties release each other from claims arising out of the Sublease, except for:

obligations stated in this Termination Agreement
unpaid amounts or damage discovered after move-out (if allowed)
fraud or intentional misconduct

obligations stated in this Termination Agreement

unpaid amounts or damage discovered after move-out (if allowed)

fraud or intentional misconduct

6. Prime Lease and Landlord Rights

6.1 The Prime Lease remains in effect and is not modified by this Termination Agreement.

6.2 Sublandlord remains responsible to the landlord under the Prime Lease.

6.3 Landlord rights are not waived by this Termination Agreement.

7. Notices

7.1 Notices must be in writing and delivered to the addresses above.

8. Governing Law

8.1 This Termination Agreement is governed by the laws of [State/Country].

Signatures

Sublandlord (Tenant): [Sublandlord Legal Name]

Name/Title: [Signer Name, Title]

Date: [Date]

Signature: ___________________________

Subtenant: [Subtenant Legal Name]

Name/Title: [Signer Name, Title]

Date: [Date]

Signature: ___________________________

Landlord Acknowledgment (Optional): [Landlord Legal Name]

Name/Title: [Signer Name, Title]

Date: [Date]

Signature: ___________________________

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Commercial Sublease Termination Agreement Template

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Commercial Sublease Termination Agreement Template — quick answers

Reviewed July 2026 Free download, PDF & DOCX

What is a commercial sublease termination agreement?

A Commercial Sublease Termination Agreement is a written agreement between a sublandlord (original tenant) and a subtenant to end a sublease early or confirm the sublease will end on a certain date. It clarifies the termination date, surrender conditions, final rent, and any releases.

Does terminating a sublease affect the prime lease?

Usually no. The prime lease between landlord and tenant stays in effect. The tenant/sublandlord remains responsible to the landlord unless the landlord agrees otherwise. This template includes a clause confirming the prime lease is unchanged.

What should be included?

Include: sublease reference, termination date, rent proration, security deposit handling, condition of the premises, return of keys, removal of personal property, releases, and optional landlord acknowledgment if required.

Do you need landlord consent to terminate a sublease?

It depends on the prime lease and the sublease terms. Some landlords require notice or approval. This template includes an optional landlord acknowledgment block.

What happens to the security deposit?

The parties can agree to return it, apply it to outstanding amounts, or retain it for damages. This template includes a clear deposit section with options.

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