sublease

In Leasing Property - Asked by Jeremy G. - Jul 2, 2014
Report Abuse
Answer this Question

Answer(s)

Rod A.
Lender/Mortgage Broker
Tampa, FL

Sublease? Are you asking what is a sublease? A sublease typically refers to a scenario whereby a lessee (tenant), of a property, in turn, leases a portion, or all, of their interest (position), in a property, to a third party. In such a scenario the lessee, becomes the lessor, but typically remains the lessee, in the primary lease agreement, for which they are financially responsible. There are scenarios where by a third party will "take over" the financial responsibility of the lessee's position in a particular lease, and the original lessee is relieved of any responsibility. In these scenarios the original (primary) city lessor typically retains the right to approve, or disapprove, of any change in the lessee's legal, and financial obligations. If you have a question pertaining to sub-leasing a property asked to see the lease as the terms and conditions whereby this is allowed is typically spelled out.

Jul 3, 2014
Report Abuse
Doyle D.
Broker/Agent
Huntington Beach, CA

People and companies sublease all the time, some contracts specifically prohibit this activity because of legality issues. It's a great way for some to move up or downgrade without breaking a contract and potentially getting into litigation or credit problems.
I know a few companies that only care about the bottom line, someone make payment at the end of the month and they don't care where it comes from.
I wish you luck and hope you can benefit from this.

Jul 3, 2014
Report Abuse
Randolph G.
Broker/Agent
Boca Raton, FL

I know I'm a few months late in answering this, but from the number of subleases I've done, you should know...
The lease usually spells out what is required and what is prohibited in a sublease. And approval is always needed by the master landlord. This approval can be a challenge and feel like its own lease negotiation. Some landlords require that someone else pay their attorney's fees for this process, some will not let a tenant make a profit on the sublease, and some take weeks upon weeks to sign the consent form.
The big issue which owners usually have is to keep the legal relationship separate, whereby the master landlord does not have a direct legal relationship to the subtenant.

Oct 10, 2014
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question