Subleases – 10 Things to Consider

10 Things You Should Consider when Subletting Space

1) Scrutinize the sublet clause and other relevant prime lease provisions, such as the use clause.  Subtenant can’t obtain rights greater than those granted to sub-landlord under the prime lease without owner’s consent. 2) Don’t let owner’s sublet consent form modify the prime lease. 3) Obtain a recognition agreement from the owner for the benefit of subtenant. 4) Limit sub-landlord’s obligations to the extent that they are performed by owner under the prime lease. 5) Don’t let sub-landlord agree to be bound by any representations or warranties made by the owner under the prime lease. 6) Require subtenant to make its rental payments 5 to 10 days before sub-landlord is required to make the same under the prime lease. 7) Get a representation from the sub-landlord that the prime lease is in full force and effect and that sub-landlord is not in default.  Make sure subtenant gets copies of default notices delivered to the sub-landlord by owner. 8) Subtenant should not have any obligation to fix pre-existing violations. 9) Get sub-landlord to agree that it won’t modify the prime lease in any way that increases the subtenant’s obligations. 10) Subtenant shouldn’t have any obligations to remove improvements made by sub-landlord.