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Commercial Sublease Contract Template for United States

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Key Requirements PROMPT example:

Commercial Sublease Contract

"I need a Commercial Sublease Contract for subletting 2,000 square feet of my retail space in downtown Seattle to a coffee shop, with the sublease term running from March 1, 2025, to February 28, 2026, and I want to include specific provisions about food service operations and shared kitchen facilities."

Document background
The Commercial Sublease Contract serves as a crucial document when a commercial tenant needs to transfer their leasing rights to another party while maintaining their original lease obligations. This arrangement is common when businesses need to downsize, relocate, or manage excess space. The contract must carefully balance the rights and obligations of all parties while ensuring compliance with the master lease and applicable U.S. federal, state, and local laws. It typically includes detailed provisions for rent, term, permitted use, insurance requirements, and maintenance responsibilities, while also incorporating relevant terms from the master lease.
Suggested Sections

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

2. Background/Recitals: Context of the sublease, reference to master lease, and purpose of agreement

3. Definitions: Key terms used throughout the agreement including Property, Term, Rent, etc.

4. Premises: Detailed description of the subleased space including square footage and location

5. Term: Duration of sublease, commencement and termination dates

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

7. Use of Premises: Permitted uses of the space and any restrictions

8. Master Lease Obligations: Incorporation of master lease terms and sublessee's obligations

9. Insurance Requirements: Required insurance coverage and minimum limits

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

Optional Sections

1. Improvements and Alterations: Terms for modifications to the space when sublessee will be making changes to the premises

2. Assignment and Further Subletting: Rights to assign or further sublease when allowing possibility of further transfer

3. Early Termination: Conditions for early termination when parties want flexibility to end lease early

4. Option to Extend: Terms for extending the sublease when offering extension rights

Suggested Schedules

1. Floor Plan: Detailed plan showing subleased area

2. Master Lease: Copy of original lease agreement

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

4. Fit-out Specifications: Details of any agreed improvements when premises modifications are planned

5. Service Charges Schedule: Breakdown of additional charges and utilities

6. Condition Report: Documentation of premises condition at start of sublease

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 law requiring commercial properties to meet specific accessibility requirements for disabled persons

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

Federal Tax Regulations: Federal tax laws and regulations that affect commercial lease transactions and reporting requirements

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

State Landlord-Tenant Laws: State laws governing the relationship between property owners and tenants, including rights and obligations

State Commercial Leasing Regulations: Specific state regulations pertaining to commercial lease agreements and business properties

State Security Deposit Laws: State-specific regulations regarding the handling, amount, and return of security deposits

State Eviction Procedures: Legal procedures and requirements for evicting commercial tenants as specified by state law

State Disclosure Requirements: Mandatory disclosures required by state law in commercial lease agreements

Municipal Zoning Ordinances: Local regulations governing property use, occupancy, and business operations in specific zones

Local Building Codes: Municipal requirements for building safety, maintenance, and modifications

Local Business Licensing: City or county requirements for business operations and commercial property use

Local Health and Safety Regulations: Municipal rules governing health and safety standards for commercial properties

Master Lease Compliance: Requirements to ensure sublease terms do not exceed or violate the original master lease agreement

Landlord Consent Requirements: Obligations to obtain primary landlord approval for subleasing arrangements

Insurance Requirements: Mandatory insurance coverage and liability protection for commercial property use

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

Use Restrictions: Limitations on property use and activities permitted under the lease agreement

Assignment and Subletting Provisions: Rules governing further transfer of lease rights to other parties

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

Maintenance and Repair Obligations: Requirements for property maintenance and allocation of repair responsibilities between parties

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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