Commercial Real Estate Sublease Agreement Template for United States

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Key Requirements PROMPT example:

Commercial Real Estate Sublease Agreement

"I need a Commercial Real Estate Sublease Agreement for subletting 5,000 square feet of my tech company's office space in downtown Seattle to a startup, with the sublease starting March 1, 2025, including specific provisions for shared conference rooms and IT infrastructure."

Document background
The Commercial Real Estate Sublease Agreement is essential when a business needs to transfer their leasing rights to another party while maintaining their original lease agreement. This document is commonly used when a company needs to downsize, relocate, or monetize excess space. It's particularly relevant in the United States where commercial real estate transactions are governed by both federal and state-specific regulations. The agreement must comply with the original lease terms while establishing new obligations between the sublandlord and subtenant. It typically includes detailed provisions for rent, security deposits, maintenance responsibilities, insurance requirements, and use restrictions. The document requires careful consideration of state-specific commercial property laws and often needs the original landlord's consent to be valid.
Suggested Sections

1. Parties: Identifies and provides full legal details of the sublandlord and subtenant, with reference to the original landlord

2. Background: Explains the context of the sublease, including reference to the master lease and the sublandlord's authority to sublease

3. Definitions: Defines key terms used throughout the agreement, including Property, Master Lease, Term, and other relevant terminology

4. Grant of Sublease: Formal statement of the sublease grant, including precise description of the subleased premises

5. Term and Possession: Specifies the duration of the sublease, commencement date, end date, and possession details

6. Rent and Other Payments: Details base rent, payment schedule, security deposit, and other financial obligations

7. Use of Premises: Specifies permitted uses of the property and any restrictions

8. Maintenance and Repairs: Outlines responsibilities for property maintenance, repairs, and improvements

9. Utilities and Services: Addresses responsibility for utilities, services, and related expenses

10. Insurance and Liability: Specifies required insurance coverage and liability obligations

11. Assignment and Further Subletting: States whether further assignment or subletting is permitted and under what conditions

12. Default and Remedies: Defines events of default and available remedies

13. Relationship to Master Lease: Establishes the relationship between the sublease and master lease, including incorporation of terms

14. Termination: Details circumstances and procedures for termination

15. Governing Law and Dispute Resolution: Specifies applicable law and methods for resolving disputes

Optional Sections

1. Broker Representation: Required if real estate brokers were involved in the transaction

2. Environmental Matters: Needed for properties with potential environmental concerns or specific requirements

3. Parking: Include when parking spaces are part of the sublease

4. Signage Rights: Include when addressing subtenant's rights to install exterior or interior signage

5. Operating Expenses: Required for triple net (NNN) or modified gross leases

6. Build-Out and Improvements: Include when subtenant will be making significant modifications to the space

7. Security Systems: Include when addressing specific security requirements or systems

8. Original Landlord's Consent: Required when master lease requires landlord's consent to sublease

Suggested Schedules

1. Schedule A - Property Description: Detailed description of the subleased premises, including floor plans and measurements

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

3. Schedule C - Rent Schedule: Detailed breakdown of rent payments, escalations, and other financial terms

4. Schedule D - Building Rules and Regulations: Specific rules and regulations governing the use of the property

5. Schedule E - Service Level Agreement: Details of services provided by sublandlord or building management

6. Schedule F - Condition Report: Documentation of the premises condition at commencement of sublease

7. Schedule G - Insurance Requirements: Detailed insurance requirements and specifications

8. Appendix 1 - Original Landlord's Consent: Written consent from the original landlord for the sublease

9. Appendix 2 - Fit-Out Specifications: Details of any agreed-upon improvements or modifications to the premises

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

Relevant legal definitions
Clauses
Relevant Industries

Retail

Professional Services

Technology

Healthcare

Manufacturing

Financial Services

Hospitality

Education

Non-profit Organizations

Media and Entertainment

Logistics and Distribution

Research and Development

Relevant Teams

Legal

Finance

Operations

Facilities Management

Risk Management

Real Estate

Administration

Procurement

Corporate Services

Business Development

Relevant Roles

Chief Financial Officer

Real Estate Manager

Facilities Manager

Property Manager

Operations Director

Legal Counsel

Risk Manager

Business Development Manager

Office Manager

Corporate Real Estate Director

Procurement Manager

Asset Manager

Space Planning Manager

Relocation Manager

Company Secretary

Industries
Americans with Disabilities Act (ADA): Federal law requiring commercial spaces to be accessible to individuals with disabilities, including specific requirements for building access, facilities, and reasonable accommodations
State Commercial Landlord-Tenant Laws: State-specific laws governing commercial property leases, including rights and obligations of landlords and tenants, eviction procedures, and security deposit regulations
Federal Fair Housing Act: While primarily focused on residential properties, certain provisions affect commercial properties in terms of preventing discrimination in real estate transactions
State Property Law: State-specific regulations governing real property transactions, including requirements for valid property transfers and lease agreements
Local Zoning Laws: Municipal regulations governing property use, occupancy requirements, and business operations in specific zones
Environmental Protection Laws: Federal and state environmental regulations affecting commercial properties, including CERCLA (Superfund), asbestos regulations, and clean air requirements
Building and Fire Safety Codes: Local and state regulations governing building safety, occupancy limits, fire prevention, and emergency access requirements
State-Specific Sublease Regulations: Specific state laws governing sublease arrangements, including requirements for original landlord consent and the relationship between all parties
Uniform Commercial Code (UCC): State-adopted standardized business laws affecting commercial transactions and lease agreements
Federal Bankruptcy Code: Regulations affecting lease obligations and rights in the event of bankruptcy of any party involved in the sublease arrangement
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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