If you want to rent commercial real estate or equipment to others it is necessary to have the lease agreement in writing. It is important to remember that a business lease is not like a dwelling rental. You need the right form that helps you answer all of the important questions, such as: who is responsible for repairs, what the landlord can charge, and what happens when the rent is late.
This Commercial Lease Agreement is an up-to-date, legally accurate and easy-to-use form that's specifically tailored for commercial lease transactions. Because you can edit and use this form as often as you like, you get the ultimate flexibility to meet your unique business circumstances.
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.
Commercial Sublease Agreement
This Packet Includes:
1. Instructions and Checklist
2. General Information
3. Commercial Sublease Agreement – Partial Premises
General Instructions & Checklist
Commercial Sublease Agreement – Partial Premises
This form should only be used if a part of the premises originally leased are being sublet. If the entire premises originally leased are being sublet, please see our Commercial Sublease Agreement for the entire premises.
This form includes italicized instructions to help guide you. You should erase these before printing your final version of the form.
The Sublessor (the original Tenant) must sign the Sublease and initial all pages where indicated.
The Subtenant (the new tenant) must sign the Sublease and initial all pages where indicated..
Generally both the Sublessor and the Subtenant(s) each retain an original signed Sublease. Therefore, if there is one Sublessor and one Subtenant, two original Subleases should be executed (i.e. signed).
The Sublessor should provide the Subtenant with a copy of the Master Lease Agreement.
The Sublessor and the Subtenant(s) should conduct a joint inspection before the beginning of the sublease. Some states require that such an inspection of the premises to be rented take place before physical occupancy by the Subtenant or before the Sublease is signed. Even if a state does not require a joint inspection, it is always a good idea to perform one.
If a sublease exceeds a certain number of years, some states require that it be recorded. Recording a sublease would generally also require notarization. The parties should also investigate under what circumstances a sublease may need to be recorded.
The original lease between the Sublessor and the Landlord (the owner of the premises) may require that the Landlord consent to the Sublease. Check your original lease to determine whether it contains this provision. If it does, you must have the Landlord sign and date the Sublease in the appropriate space. In addition, in certain cases other entities (e.g. banks) may need to consent to the sublease. Again, check your original lease to determine what consents it requires.
These forms contain the basic terms and language that should be included in similar agreements. The laws in some states require additional
written disclosures. Some cities and other municipalities may also have specific disclosure requirements that need to be included. Check with a real estate agent or attorney in your area to determine what additional disclosures, if any, are required in your state or locality. If not required by law, a Subtenant may still request the disclosures and try to make them part of the sublease.
Laws vary from time to time and from state to state. These forms are not intended and are not a substitute for legal advice. These forms should only be a starting point for you and should not be used or signed before first consulting with an attorney to ensure that it addresses your particular situation. An attorney should be consulted before negotiating any document with another party.
Commercial Sublease Agreement – Partial Premises
A commercial sublease agreement is an agreement used by a tenant to sublease part or all of commercial property to another for a portion or the remainder of his lease term. A tenant my choose to sublease for a number of reasons including relocation of business, reduction of business size or other business reasons. This agreement is for the sublease of only a part of the original leased premises.
A sublease agreement is made between the original tenant (“Sublessor”) and the new tenant (“Subtenant”). Depending on your original lease, to perform a sublease you may also need the consent of the Landlord (the owner of the premises) and possibly other entities (e.g. a bank). Review your original lease to determine whether such consents are required. If they are, contact the parties. The law generally does not require that these other parties give their consent to a sublease, so it is best to handle the situation diplomatically.
Some states also require that the Sublessor and Subtenant conduct an inspection of the premises to be rented either before physical occupancy by the Subtenant or before the sublease is signed. Even if a state does not require a joint inspection, it is always a good idea to complete one. A joint inspection can also help the Sublessor justify any security deposit deductions, if warranted.
Many states and localities also have different laws relating to commercial leases, so Sublessors and Subtenants should become familiar with the laws of their state and locality before entering into this type of arrangement. In addition, before using the form you should always consult with your attorney to ensure that it addresses your specific situation.
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COMMERCIAL SUBLEASE AGREEMENT
This Sublease Agreement (“Sublease”) is entered as of _________________________, 20____ by and between ________________________________________ (“Sublessor”) and _____________________ ________________________________________ (“Subtenant”).
Sublessor and Subtenant may collectively be referred to as the “Parties.”
WHEREAS, Sublessor entered into a lease agreement dated _________________ between the Sublessor and ___________________________ (“Landlord”) for the premises located at: _____________________________________________________
(the “Premises”) for a term ending on ___________________________ (the “Master Lease Agreement”); and
WHEREAS, Sublessor and Subtenant wish to enter into this Sublease.
NOW, THEREFORE, the Parties agree as follows:
1. SUBLEASE PREMISES: Sublessor hereby subleases a portion of the Premises shown/described on Exhibit A attached hereto (the “Sublease Premises”).
2. SUBLEASE TERM: The Sublease will begin on _____________ (begin date) and will end on ___________ (end date) (Sublease Term).
3. LEASE PAYMENTS: Subtenant agrees to pay to ___Landlord or ___ Sublessor (choose one) the following:
A. Base Rent: As base rent for the Sublease Premises the amount of $_________ (“Base Rent”) each month in advance on the first day of each month at: __________________________________________________ (address for rent payment) or at any other address designated by ___Landlord or ___Sublessor (choose one). If the Sublease Term does not start on the first day of the month or end on the last day of the month, the Base Rent will be prorated accordingly.
B. Other Charges: [If Subtenant will not have a separate account with utility providers, this is where you would include charges for electricity, heating, etc. If there are no other charges, write “none” below.] ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________(“Other Charges”). The Other Charges are to be paid together with the Base Rent each month in advance of the first day of each month. If the Sublease Term does not start on the first day of the month or end on the last day of the month, the Other Charges will be prorated accordingly.
4. LATE CHARGES: If any amount under this Sublease is more than _____ days late, Subtenant agrees to pay a late fee of $________.
5. INSUFFICIENT FUNDS: Subtenant agrees to pay the charge of $_____ for each check that is returned for lack of sufficient funds.
6. BUSINESS TAXES: Subtenant shall pay all business taxes in respect of the business carried on in or upon the Sublease Premises.
7. SECURITY DEPOSIT: At the signing of this Sublease, Subtenant shall deposit with Sublessor/Landlord (circle one), in trust, a security deposit of $__________ as security for the performance by Subtenant of the terms under this Sublease and for any damages caused by Subtenant, Subtenant’s family, agents or visitors to the Sublease Premises during the Sublease Term. However, Sublessor is not just limited to the security deposit amount and Subtenant remains liable for any balance. Subtenant shall not apply or deduct any portion of any security deposit from the last or any month's rent. Subtenant shall not use or apply any such security deposit at any time in lieu of payment of rent. If Subtenant breaches any terms or conditions of this Sublease, Subtenant shall forfeit any deposit, as permitted by law.
8. QUIET ENJOYMENT: Subtenant shall be entitled to quiet enjoyment of the Sublease Premises, and neither Sublessor nor Landlord will interfere with that right, as long as Subtenant pays the Base Rent and Other Charges in a timely manner and performs all other obligations under this Sublease.
9. POSSESSION AND SURRENDER OF PREMISES: Subtenant shall be entitled to possession of the Sublease Premises on the first day of the Sublease Term. At the expiration of the Sublease, Subtenant shall peaceably surrender the Sublease Premises to Sublessor or Sublessor’s agent in good condition, as it was at the commencement of the Sublease, reasonable wear and tear excepted.
10. CONDITION OF PREMISES: Subtenant or Subtenant’s agent has inspected the Sublease Premises, the fixtures, the grounds, building and improvements (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with the requirements of the Americans with Disabilities Act) and acknowledges that the Sublease Premises are in good and acceptable condition and suitable for Subtenant’s intended use. If at any time during the term of this Sublease, in Subtenant’s opinion, the conditions change, Subtenant shall promptly provide reasonable notice to __Sublessor or ___Landlord (choose one).
11. OBLIGATIONS UNDER MASTER LEASE: Subtenant acknowledges the receipt of a copy of the Master Lease, as attached hereto as Exhibit B.
A. Subtenant agrees that all terms and conditions of the Master Lease are hereby incorporated into this Sublease except for those provisions of the Master Lease that are directly contradicted by this Sublease, in which event the terms of this Sublease shall control over the Master Lease.
B. Subtenant will comply with the terms in the Master Lease and will avoid actions or inactions that would constitute a breach or default of Sublessor’s obligations in the Master Lease.
C. If Subtenant desires to do perform any act that requires the consent/approval of Landlord, Subtenant shall also be required to first obtain the consent/approval of Sublessor (Sublessor’s right to withhold consent or approval shall be independent of Landlord’s right).
12. SEVERABILITY: If any part or parts of this Sublease shall be held unenforceable for any reason, the remainder of this Sublease shall continue in full force and effect. If any provision of this Sublease is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited.
13. BINDING EFFECT: The covenants and conditions contained in the Sublease shall apply to and bind the parties and the heirs, legal representatives, successors and permitted assigns of the Parties.
14. ENTIRE AGREEMENT: This Sublease constitutes the entire agreement between the Parties and supersedes any prior understanding or representation of any kind preceding the date of this Sublease. There are no other promises, conditions, understandings or other agreements, whether oral or written, relating to the subject matter of this Sublease. This Sublease may be modified in writing and must be signed by both Parties.
15. GOVERNING LAW: This Sublease shall be governed by and construed in accordance with the laws of the State of __________________________________________.
16. NOTICE: Any notice required or otherwise given pursuant to this Sublease shall be in writing and mailed certified return receipt requested, postage prepaid, or delivered by overnight delivery service, if to Subtenant, at the Premises and if to Sublessor, to ____________________ _________________________________________________________________. Either party may change such addresses from time to time by providing notice as set forth above.
17. WAIVER: The failure of either party to enforce any provisions of this Sublease shall not be deemed a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Sublease. The acceptance of rent by Sublessor or Landlord does not waive Sublessor’s right to enforce any provisions of this Sublease.
18. LEGAL FEES: In the event of any legal action by the parties arising out of this Sublease, the losing party shall pay the prevailing party reasonable attorneys' fees and costs in addition to all other relief.
ADDITIONAL PROVISIONS (Specify “none” if there are no additional provisions)
[The remainder of this page intentionally left blank.]IN WITNESS WHEREOF, the parties have caused this Sublease to be executed the day and year first above written.
If Landlord’s consent is not required check here [__].
The undersigned, Landlord in the Master Lease, hereby consents to the foregoing Sublease Agreement.
OTHER REQUIRED CONSENTS
If no other consents are required check here [__].
The undersigned, ____________________________________________, hereby consents to the foregoing Sublease Agreement.
DESCRIPTION OF SUBLEASE PREMISESEXHIBIT B
MASTER LEASE AGREEMENT