Commercial Sublease Agreement: Everything You Need to Know
A commercial sublease agreement is also known as a commercial sublease contract or a commercial real estate sublease. This agreement is a form that lets tenants rent a space that's under a contract with a landlord to the sublessee.3 min read
A commercial sublease agreement is also known as a commercial sublease contract or a commercial real estate sublease. This agreement is a form that lets tenants rent a space that's under a contract with a landlord to the sublessee. The sublessor is the person renting out space and reviews the applicant, handles negotiating, and accepts any responsibility for the sublessee.
What Is a Commercial Sublease Agreement?
Commercial sublease agreements can only be used in the following spaces:
- Office space
- Industrial space
- Retail space
Residential sublease agreements are used for any type of residential property, including the following:
- Roommate situations
Details of a Standard Commercial Sublease Agreement
There are several items that are required to be in a commercial sublease agreement. Both parties need to have their full names, business addresses, and any other necessary contact information. The specific place that's going to be subleased needs to have a description as well as the address of the building. The terms will need to be stated so it's known when the agreement starts and how long it lasts for.
Payment information needs to be addressed, such as how much payments will be every month, when they're due, and how they'll get paid. Information about late fees should also be listed. It might be necessary for the tenants to get their own services in some cases. This may be for internet, utilities, cleaning services, refuser services, and building security, while other landlords may pay for that. It needs to be clear what happens if the contract gets terminated and what expenses can happen. This may be fees for lawyer, damage, cleaning, and collection.
Items to Consider Putting in a Shared Space Agreement
Beyond basic items, there are many other things that can be included in the commercial sublease agreement. Sometimes parts of a space are shared, so details will need to be listed that discuss how the tenants will get along and how the business will run without problems. While these don't need to be in the lease itself, everyone should agree with them. It should discuss how communal or shared space will work, including break rooms, conference rooms, storage rooms, lobby space, interview rooms, bathrooms, and stairwells and hallways.
Everyone should agree on the way these spaces will be kept clean and any information about how someone can reserve interview and conference rooms. There may also be office equipment and appliances that people can rent, so it should be listed who owns these and who is in charge of maintaining them. How new items will be handled should also be discussed. Many offices come with parking spaces, but that doesn't mean there will be enough for everyone to park there. It should be clear who can park there and where customers will park if applicable.
Actions should be outlined that talk about what to do in case of an emergency. Every tenant should know where the fire extinguishers and medical supplies are. You can benefit from what type of signage will be allowed and where it can be found. This includes signage that's outdoors and inside shared spaces, including the lobby. Subletters will need to know if they can paint or alter the space they're renting. Any restrictions on visitors should also be stated, including pet restrictions.
When to Use the Commercial Sublease Document
A commercial sublease document can be used if part of the commercial space will be leased or if the entire property will be leased. If the agreement says the property can be sublet, subletting parts of the property is a good way to cut down on costs of the building. This is also helpful if the company is going out of business and needs to move to another piece of property. A sublease agreement can be used to rent out part of the space while the landlord owns the rest.
If the lease does not state if space can be sublet or not, consent can be obtained from the property manager or landlord for a consent to sublease form. This shows that the person got the landlord's permission to sublet the space.
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