Commercial Sublease Agreement Template for Germany

The Commercial Sublease Agreement is utilized when a commercial tenant wishes to sublease all or part of their leased premises to another business entity in Germany. This arrangement is common in situations where a tenant has excess space or needs to reduce costs while maintaining their primary lease. The document must carefully balance the rights and obligations between all parties while ensuring compliance with German commercial property laws. The agreement includes detailed provisions for rent, operating costs (Betriebskosten), maintenance responsibilities, and use restrictions. It must also address the relationship with the main lease and often requires the main landlord's consent. The document must comply with the strict written form requirements under German law and typically includes various schedules detailing technical and practical aspects of the sublease arrangement.

1. Parties: Identification of the sublandlord (main tenant) and subtenant, including full legal names, addresses, and registration details for legal entities

2. Background: Context of the sublease, including reference to the main lease agreement and confirmation of the sublandlord's authority to sublease

3. Definitions: Definitions of key terms used throughout the agreement, including 'Premises', 'Main Lease', 'Commencement Date', etc.

4. Demise: Formal grant of the sublease, specifying the exact premises being subleased and any included fixtures and fittings

5. Term: Duration of the sublease, including start and end dates, and ensuring it doesn't exceed the main lease term

6. Rent and Operating Costs: Detailed provisions for rent payment, operating costs (Betriebskosten), utilities, and other charges

7. Use of Premises: Permitted use of the premises and any restrictions, consistent with the main lease

8. Maintenance and Repairs: Responsibilities for maintenance, repairs, and renovations between parties

9. Insurance: Insurance requirements for both parties, including property and liability coverage

10. Sublessee Obligations: Key obligations and responsibilities of the sublessee, including compliance with main lease terms

11. Sublessor Obligations: Key obligations and responsibilities of the sublessor, including maintaining the main lease

12. Termination: Grounds and procedures for early termination, including relationship with main lease termination

13. Governing Law: Confirmation of German law application and jurisdiction