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Commercial Sublease Template for United States

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Key Requirements PROMPT example:

Commercial Sublease

"I need a Commercial Sublease agreement for subletting 5,000 square feet of office space in downtown Seattle to a tech startup, with the sublease term running from March 1, 2025 to December 31, 2025, including specific provisions for shared conference room access and IT infrastructure."

Document background
The Commercial Sublease agreement is essential when a business needs to transfer its leasing rights to another party while maintaining its obligations under the original lease. This document is commonly used in the United States when companies need to reduce their space requirements, manage excess capacity, or relocate before their original lease expires. The agreement must comply with both federal and state-specific commercial property laws and typically requires the original landlord's consent. It should address key aspects such as rental payments, maintenance responsibilities, insurance requirements, and the relationship between the sublease and the master lease.
Suggested Sections

1. Parties: Identification of sublessor and sublessee, including legal names and addresses

2. Background/Recitals: Context of the sublease, including reference to master lease

3. Definitions: Key terms used throughout the agreement

4. Premises: Detailed description of the subleased space

5. Term: Duration of sublease, including commencement and expiration dates

6. Rent and Other Payments: Rent amount, payment schedule, and additional charges

7. Use of Premises: Permitted uses of the space

8. Relationship to Master Lease: Subordination to and incorporation of master lease terms

Optional Sections

1. Improvements and Alterations: Terms for modifications to the space - include when sublessee is permitted to make changes to the premises

2. Assignment and Further Subletting: Rights to transfer the sublease - include when parties want to explicitly address further transfer rights

3. Early Termination: Conditions for early ending of sublease - include when parties want flexibility to end the agreement early

4. Option to Extend: Terms for extending the sublease - include when sublessee is given right to extend term

Suggested Schedules

1. Floor Plan: Detailed plan showing subleased area

2. Master Lease: Copy of the original lease agreement

3. Landlord's Consent: Written consent from master landlord

4. Rent Schedule: Detailed breakdown of rent payments

5. Condition Report: Documentation of premises condition at commencement

6. Insurance Requirements: Detailed insurance specifications

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

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Industries

Americans with Disabilities Act (ADA): Federal legislation requiring commercial properties to meet specific accessibility requirements for individuals with disabilities

Fair Housing Act: Federal law that may apply to mixed-use properties, prohibiting discrimination in housing transactions

Federal Tax Laws: Federal regulations governing taxation of commercial real estate transactions and income

State Property Laws: State-specific legislation governing real property rights, transfers, and obligations

State Landlord-Tenant Laws: State regulations defining the rights and responsibilities of landlords and tenants in commercial relationships

State Commercial Lease Regulations: Specific state rules governing commercial lease agreements and their enforcement

State Real Estate Licensing Requirements: Regulations regarding necessary licenses and permits for real estate transactions

State Eviction Procedures: State-specific rules and procedures for commercial tenant eviction processes

State Security Deposit Regulations: State laws governing the handling, maintenance, and return of security deposits

Municipal Zoning Ordinances: Local regulations determining permitted property uses and restrictions in specific areas

Local Building Codes: Municipal regulations governing building construction, maintenance, and safety standards

Local Business Licensing Requirements: City or county requirements for business operation permits and licenses

Local Health and Safety Regulations: Municipal rules ensuring property meets health and safety standards

Local Fire Codes: Fire safety requirements and standards specific to the local jurisdiction

Master Lease Compliance: Requirements to ensure sublease terms do not conflict with the original master lease agreement

Landlord Consent Requirements: Provisions regarding necessary approvals from the master landlord for sublease arrangements

Insurance Requirements: Mandatory insurance coverage and liability protection for all parties involved

Environmental Regulations: Federal, state, and local environmental protection requirements affecting commercial properties

Use Restrictions: Limitations and permissions regarding how the subleased property may be used

Assignment and Subletting Provisions: Rules governing further transfer of property rights or additional sublease arrangements

Default and Remedies: Legal procedures and remedies available in case of lease violations or default

Maintenance and Repair Obligations: Responsibilities of each party regarding property maintenance and repairs

Utilities and Services Responsibilities: Assignment of responsibilities for utility services and related costs

Property Tax Obligations: Requirements regarding payment and handling of property tax responsibilities

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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