The Commercial Sublease agreement is essential when a business needs to transfer its leasing rights to another party while maintaining its obligations under the original lease. This document is commonly used in the United States when companies need to reduce their space requirements, manage excess capacity, or relocate before their original lease expires. The agreement must comply with both federal and state-specific commercial property laws and typically requires the original landlord's consent. It should address key aspects such as rental payments, maintenance responsibilities, insurance requirements, and the relationship between the sublease and the master lease.
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1. Parties: Identification of sublessor and sublessee, including legal names and addresses
2. Background/Recitals: Context of the sublease, including reference to master lease
3. Definitions: Key terms used throughout the agreement
4. Premises: Detailed description of the subleased space
5. Term: Duration of sublease, including commencement and expiration dates
6. Rent and Other Payments: Rent amount, payment schedule, and additional charges
7. Use of Premises: Permitted uses of the space
8. Relationship to Master Lease: Subordination to and incorporation of master lease terms
1. Improvements and Alterations: Terms for modifications to the space - include when sublessee is permitted to make changes to the premises
2. Assignment and Further Subletting: Rights to transfer the sublease - include when parties want to explicitly address further transfer rights
3. Early Termination: Conditions for early ending of sublease - include when parties want flexibility to end the agreement early
4. Option to Extend: Terms for extending the sublease - include when sublessee is given right to extend term
1. Floor Plan: Detailed plan showing subleased area
2. Master Lease: Copy of the original lease agreement
3. Landlord's Consent: Written consent from master landlord
4. Rent Schedule: Detailed breakdown of rent payments
5. Condition Report: Documentation of premises condition at commencement
6. Insurance Requirements: Detailed insurance specifications
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