What restrictions and permissions should be included in a sublease and assignment clause in a commercial lease? The landlord wants to ensure that they have control of the premises and who is using their property. However, the tenant also may need the flexibility to either get out of the lease if their needs change or share space with another tenant.
The parties should negotiate reasonable conditions to be applied to the landlord’s approval of any proposed sublease or assignment of the lease. Also, the parties should address the terms applicable to sharing any excess rent that the tenant may be receiving from the subtenant or assignee, and what limits should be placed on what is included in excess rent calculations. Contact us for help with Commercial Leases.