Commercial Sublease Contract Template for Canada

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Key Requirements PROMPT example:

Commercial Sublease Contract

"I need a Commercial Sublease Contract for subletting 2,000 square feet of office space in downtown Toronto, with the sublease term running from March 1, 2025, to December 31, 2025, including standard provisions for a professional services company."

Document background
The Commercial Sublease Contract is essential when a business tenant needs to transfer their leasing rights to another party while retaining their obligations under the original lease. This document is commonly used in Canadian jurisdictions when companies need to downsize, relocate, or optimize their real estate costs while still being bound by their original lease terms. The agreement must comply with both federal and provincial regulations governing commercial properties and requires careful consideration of the master lease terms, landlord's consent, and the rights and obligations of all parties involved. The contract typically includes detailed provisions for rent payments, operating costs, maintenance responsibilities, insurance requirements, and default remedies, ensuring all parties understand their roles and responsibilities in this three-way relationship.
Suggested Sections

1. Parties: Identification of all parties: Original Landlord, Tenant/Sublandlord, and Subtenant

2. Background: Context of the sublease, including reference to the master lease and confirmation of required consents

3. Definitions: Key terms used throughout the agreement, including specific references to master lease definitions where applicable

4. Grant of Sublease: Formal grant of the sublease, description of premises, and term

5. Master Lease Incorporation: Incorporation of master lease terms and specification of which provisions apply to subtenant

6. Rent and Other Payments: Base rent, additional rent, utilities, operating costs, and payment terms

7. Use of Premises: Permitted use of the premises and any restrictions

8. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements

9. Insurance and Indemnification: Required insurance coverage and indemnification obligations

10. Assignment and Further Subletting: Rights and restrictions regarding further transfer of the premises

11. Default and Remedies: Events of default and available remedies

12. Surrender of Premises: Requirements for returning the premises at end of term

13. Notices: Communication requirements and contact information

14. General Provisions: Standard contract clauses including governing law, amendments, and entire agreement

Optional Sections

1. Security Deposit: Terms of security deposit if required - include when sublandlord requires additional security

2. Alterations and Improvements: Specific provisions for modifications - include when alterations are anticipated

3. Shared Facilities: Rules for common areas or shared spaces - include when premises are part of larger facility

4. Environmental Matters: Environmental obligations and restrictions - include for industrial or potentially contaminating uses

5. Signage Rights: Provisions for exterior or interior signage - include when signage is important to subtenant

6. Option to Extend: Terms for extending the sublease - include when extension rights are granted

7. Right of First Refusal: Rights to lease additional space - include when expansion possibilities exist

8. Parking: Specific parking rights and obligations - include when parking is separately allocated

Suggested Schedules

1. Schedule A - Floor Plan: Detailed plan showing the subleased premises

2. Schedule B - Master Lease: Copy of the master lease agreement

3. Schedule C - Rent Schedule: Detailed breakdown of rent payments and escalations

4. Schedule D - Landlord's Consent: Written consent from the original landlord

5. Schedule E - Services and Utilities: Details of services provided and utility responsibilities

6. Schedule F - Rules and Regulations: Building rules and regulations applicable to subtenant

7. Schedule G - Condition Report: Documentation of premises condition at commencement

8. Schedule H - Permitted Alterations: Pre-approved alterations or improvements if any

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Relevant Industries

Retail

Office Space

Industrial

Manufacturing

Warehouse and Distribution

Technology

Healthcare

Professional Services

Food and Beverage

Entertainment

Education

Financial Services

Relevant Teams

Legal

Finance

Operations

Facilities Management

Real Estate

Risk Management

Procurement

Administration

Corporate Services

Business Development

Relevant Roles

Chief Financial Officer

Real Estate Manager

Facilities Manager

Operations Director

Legal Counsel

Property Manager

Business Development Manager

Chief Operations Officer

Risk Manager

Commercial Lease Administrator

Space Planning Manager

Corporate Real Estate Director

Asset Manager

Procurement Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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