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Commercial Real Estate Sublease Agreement Template for Canada

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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 office space in downtown Toronto to a tech startup, with the sublease term running from March 1, 2025, to December 31, 2025, including provisions for shared use of conference facilities and IT infrastructure."

Document background
The Commercial Real Estate Sublease Agreement is a vital document used when a tenant wishes to transfer partial or full use of their leased commercial property to another party while maintaining their original lease obligations. This arrangement is common in the Canadian commercial real estate market where businesses need flexibility in their real estate commitments. The document must comply with both federal and provincial regulations, and typically requires the master landlord's consent. It includes detailed provisions for rent, operating costs, maintenance responsibilities, insurance requirements, and use restrictions. The agreement protects all parties' interests by clearly defining relationships, obligations, and remedies, while ensuring alignment with the master lease terms. It's particularly useful for businesses looking to optimize their real estate costs or adjust their space requirements without breaking their original lease commitments.
Suggested Sections

1. Parties: Identification of Sublandlord and Subtenant, including legal names and addresses

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

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

4. Grant of Sublease: Formal grant of the sublease interest and description of the subleased premises

5. Term: Duration of sublease, commencement date, expiration date, and any renewal options

6. Rent and Other Payments: Base rent, additional rent, operating costs, utilities, and payment terms

7. Security Deposit: Amount, form, and conditions for return of security deposit

8. Use of Premises: Permitted uses of the premises and any restrictions

9. Master Lease Compliance: Subtenant's obligations to comply with master lease terms

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

11. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions

12. Default and Remedies: Events of default and available remedies for both parties

13. Assignment and Further Subletting: Restrictions on further transfer of sublease interests

14. Notices: Process and addresses for formal communications between parties

15. General Provisions: Standard legal provisions including governing law, amendments, and severability

Optional Sections

1. Furniture and Equipment: Details of any furniture or equipment included in the sublease, used when the premises are being subleased furnished

2. Tenant Improvements: Rights and obligations regarding alterations and improvements, included when modifications are contemplated

3. Operating Hours: Specific hours of operation and access rights, relevant for multi-tenant buildings

4. Signage Rights: Rights and restrictions regarding exterior and interior signage, important for retail locations

5. Parking: Allocation of parking spaces and related terms, relevant when parking is included

6. Environmental Matters: Special environmental obligations or concerns, needed for industrial or specialized uses

7. Building Services: Special services provided by building management, relevant in full-service buildings

8. Option to Purchase: Right to purchase the property, included when agreed between parties

9. Guaranty: Personal or corporate guaranty provisions, used when additional security is required

Suggested Schedules

1. Schedule A - Floor Plan: Detailed plan showing the subleased premises

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

3. Schedule C - Rent Schedule: Detailed breakdown of rent payments and escalations

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

5. Schedule E - Condition Report: Documentation of premises condition at commencement

6. Schedule F - Permitted Alterations: Pre-approved alterations or improvements

7. Schedule G - Service Level Agreement: Details of building services and maintenance standards

8. Schedule H - Insurance Requirements: Detailed insurance specifications and requirements

9. Appendix 1 - Landlord's Consent: Written consent from the master landlord for the sublease

10. Appendix 2 - Guaranty Agreement: Form of any required guaranty

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Office Space

Industrial

Manufacturing

Technology

Healthcare

Professional Services

Hospitality

Warehousing

Distribution

Financial Services

Education

Entertainment

Logistics

Research and Development

Relevant Teams

Legal

Real Estate

Facilities Management

Finance

Operations

Risk Management

Compliance

Administration

Business Development

Property Management

Relevant Roles

Chief Financial Officer

Real Estate Manager

Facilities Manager

Property Manager

Legal Counsel

Corporate Lawyer

Real Estate Director

Operations Manager

Business Development Manager

Risk Manager

Compliance Officer

Asset Manager

Commercial Lease Administrator

Real Estate Broker

Chief Operating Officer

Finance Director

Contract Manager

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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