A lease occurs when a contract between a property owner and a tenant that will transfer the owner’s rights to the possession and use of the real estate property to the tenant for a specific period is made. But a sublease is something else, it occurs when the original owner does not lease the premises to the tenant, but there is another person in between the two or in simple words, the property owner rents to someone else, and then that person rents another. Subleases are generally common in commercial and residential properties. But to make a sublease for a commercial purpose, a commercial sublease agreement is required to add some special considerations.
What is a Commercial Sublease Agreement?
A commercial sublease agreement is a contract that allows tenants to rent a space that is under a contract with a landlord to the sublessee. And the person who is renting out space and reviews the applicant handles the negotiations and accepts any kind of responsibility for the sublessee is called a sublessor. It is also known as a commercial sublease contract or a commercial real estate sublease. It can is mostly used when the tenant is interested in doing some business and sublets the rental place to a subtenant without breaking his or her current lease with the landlord or property manager. This subtenant has to pay the rent to the tenant who signed the original lease and only rents the property until the end of the lease term.
When to Use a Commercial Sublease Agreement Form?
A commercial sublease agreement form can be used in case any part of the commercial space will be leased or if the entire property will be leased. Such an agreement can only be used in office space, industrial space, and retail spaces. With the help of this commercial sublease agreement form, one can sublet some parts of the property to cut down on costs of the building. It also helps in case a company is going out of business and needs to move to another piece of property.
Advantages and Disadvantages of a Commercial Subleasing
Whilst there are several significant risks to subleasing a commercial space, there are some important advantages to consider as well. These are the following benefits to subleasing a commercial space as a tenant:
- Rather than a standard commercial lease, subleased spaces are often more cost-effective.
- In the case of small businesses that are just starting, subleasing works quite well.
- While subleasing space for commercial purposes, you do not have to waste your time and money upgrading the space or building it out.
- A sublease agreement qualifies easily compared to a commercial lease agreement.
- If you are a sublessee, doing the repairs or maintain the common areas may not be required.
5+ Commercial Sublease Agreement Forms in PDF | DOC
1. Commercial Sublease Agreement Form
The subletting process requires a written commercial sublease agreement form that will contain all the important data that has to be clarified before getting into a sublease. This template right here is a well-written commercial sublease agreement that involves a set of information dealing with the basic details of the subtenant and the sublandlord along with the rent and other relevant elements like the insurance and the security deposits.
2. Model Commercial Sublease Agreement
Here is a sample sublease agreement form that comprises an agreement that is made between the subtenant and sublandlord who is the original tenant. An agreement is incomplete without some terms and conditions, and this document deals with the important elements that the sublessor and the sublessee agree while subleasing.
3. Simple Commercial Sublease Agreement
A commercial agreement form is a contract made between the subtenant and the sublandlord and it must contain many things beyond the basic items that can be included in the commercial sublease agreement. Details will need to be listed that shall discuss how the tenants will get along and how the business will run without problems. It must also lay down the facts or the terms that are mandatory in the subleasing process, for example, information related to the renewal, holdover, rent, security deposits, use of the premises, alteration, and improvement, insurance and termination of the agreement.
4. Commercial Sublease Agreement Example
For commercial purposes or businesses, lease obligations can make or break a company and it is specifically true for startups and expanding businesses in general. Therefore, you must know and understand what you are getting into before you sign a commercial lease agreement form. This template carries out a standard commercial sublease that contains all the instructions that you must go through before signing a sublease agreement. It begins with a document title, followed by mentioning the source of funding, description of the purpose and ends with a detailed description of the terms and conditions.
5. Sample Commercial Sublease Agreement
Commercial sublease agreements are often long and have significant components that are required in the subleasing process. But sometimes, it can be short and crisp as well and not miss any important data in its content. It is not possible to explain every term in detail every time an agreement is made. This specific agreement contains a well-formatted sublease agreement that can be used for professional purposes anytime and anywhere as it is written in simple language and easy to understand.
6. Standard Commercial Lease Form
A standard commercial lease is made to set out the rules that the sublandlord and the subtenant agree to follow in their rental relationship. It is considered to be a legal contract as well as an immensely practical document that is full of crucial business details such as the lease term and the determination of the rent along with security deposits and taxes, instructions for lease termination and various other important details. No matter the lease or rental agreement is as short as one page or longer than five or six pages, either typed or handwritten, it needs to cover the basic terms of the sublease tenancy.
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