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Business Sublease Agreement

Business Sublease Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Business Sublease Agreement

"I need a Business Sublease Agreement for subleasing a 500 square meter retail space in Dubai Mall to a luxury fashion retailer, with the sublease term starting from March 1, 2025, for an initial period of three years with an option to renew for two additional years."

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Document background
The Business Sublease Agreement is essential in the UAE commercial property market where businesses frequently need to sublease space to optimize their property utilization. This document is specifically used when a current tenant wishes to lease all or part of their rented premises to another business entity. It must carefully balance the rights and obligations of the sublandlord and subtenant while ensuring compliance with the master lease and UAE property laws. The agreement includes crucial elements such as premises details, term length, rental payments, permitted use, and maintenance responsibilities. Given the UAE's strict regulatory environment, particularly in emirates like Dubai and Abu Dhabi, the agreement must incorporate specific local requirements, including RERA regulations and municipality guidelines. This document is particularly relevant in commercial zones and free zones where business subleasing is common.
Suggested Sections

1. Parties: Identification of the Sublandlord (current tenant) and Subtenant, including full legal names, commercial license numbers, and registered addresses

2. Background: Context of the sublease arrangement, including reference to the master lease and confirmation of authority to sublease

3. Definitions: Key terms used throughout the agreement, including 'Premises', 'Master Lease', 'Term', 'Permitted Use', etc.

4. Grant of Sublease: Formal grant of the sublease, specifically describing the premises and any included facilities or services

5. Term and Renewal: Duration of the sublease, commencement date, expiry date, and any renewal options

6. Rent and Payment Terms: Rent amount, payment schedule, security deposit, and other financial obligations

7. Use of Premises: Permitted business activities and restrictions on use

8. Maintenance and Repairs: Responsibilities for maintaining and repairing the premises

9. Utilities and Services: Allocation of responsibility for utilities, services, and related costs

10. Insurance and Liability: Required insurance coverage and allocation of risks

11. Assignment and Further Subletting: Restrictions on further assignment or subletting

12. Default and Remedies: Events of default and available remedies

13. Termination: Grounds for termination and the process thereof

14. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction for disputes

Optional Sections

1. Fit-out Works: Include when the subtenant is permitted to make modifications to the premises

2. Service Charges: Include when there are separate service charges in addition to rent

3. Common Areas: Include when the premises is part of a larger building or complex with shared facilities

4. Operating Hours: Include when there are specific restrictions on business hours

5. Environmental Obligations: Include for premises where environmental compliance is significant

6. Parking: Include when specific parking rights are part of the sublease

7. Signage Rights: Include when exterior or interior signage rights are granted

8. Force Majeure: Include specific provisions for unforeseen circumstances affecting the premises or business operations

Suggested Schedules

1. Schedule 1 - Premises Plan: Detailed floor plan and measurements of the subleased premises

2. Schedule 2 - Master Lease: Copy or relevant excerpts of the master lease agreement

3. Schedule 3 - Rent Schedule: Detailed breakdown of rent payments, including any escalations

4. Schedule 4 - Service Charges: Breakdown of service charges and calculation method

5. Schedule 5 - Fit-out Specifications: Approved alterations and technical specifications

6. Schedule 6 - Handover Condition: Detailed inventory and condition report of the premises

7. Schedule 7 - Building Rules: Applicable building rules and regulations

8. Appendix A - Required Permits: List of required governmental and regulatory permits

9. Appendix B - Insurance Requirements: Detailed insurance requirements and minimum coverage levels

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions

































Clauses































Relevant Industries

Retail

Office Space

Commercial Real Estate

Hospitality

Manufacturing

Warehousing and Logistics

Professional Services

Healthcare

Education

Technology

Financial Services

Media and Entertainment

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Corporate Services

Administration

Risk Management

Property Management

Relevant Roles

Real Estate Manager

Legal Counsel

Property Manager

Facilities Manager

Commercial Director

Operations Manager

Chief Financial Officer

Business Development Manager

Contract Administrator

Compliance Officer

Asset Manager

Managing Director

Finance Director

Corporate Services Manager

Real Estate Director

Industries








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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