"Concerns with Subleasing Space"
One of the common provisions in a commercial lease is the sublease clause. This is of concern to every tenant whether you are the sublessor or the sublessee. The term of the lease determines the importance of the subletting provision. The tenant should consult with its attorney and commercial real estate broker to be cognizant of the following ramifications:
- A broad “use” clause allowing for a tenancy not tied to tenants’ only use of the premises.
- Restrictions placed by landlord due to other existing tenants’ rights or exclusivity.
- Landlord’s right to recapture the space or obtain rental overage if applicable.
- Tenant’s ability to sublet all or part of the premises.
- Landlord’s rights as to restoration at end of term.
- Landlord’s restrictions on tenant improvements.
- Landlord not to unreasonably withhold or delay its consent.
Rockland SCORE Mentor Larry Spinowitz has been a commercial real estate broker and investor in NYC and Rockland County. Having negotiated over 1,000 leases he welcomes your questions and concerns. He can provide examples of each of the above as to when and how they have come into play.
Contact him at firstname.lastname@example.org or at 845-426-1206.