A sublease commercial agreement is a legal document that outlines the terms and conditions under which a tenant (sublessor) leases a portion of their leased commercial space to another party (subtenant). This agreement serves as a contract between the sublessor and the subtenant, defining their rights and responsibilities regarding the subleased space.
Essential Elements of a Sublease Commercial Agreement
Free Commercial Sublease Agreement Template – PDF Word – eForms
A well-structured sublease commercial agreement should include the following key elements:
Parties Involved
Sublessor: The original tenant who is subleasing a portion of their leased space.
Subtenant: The party leasing the subleased space from the sublessor.
Description of the Subleased Space
Specific Location: Precisely identify the subleased space within the larger leased premises.
Square Footage: Clearly state the square footage of the subleased space.
Amenities: List any specific amenities or features included in the subleased space.
Term of the Sublease
Start Date: Specify the date on which the sublease commences.
End Date: Indicate the date on which the sublease terminates.
Renewal Options: If applicable, outline any options for renewing the sublease.
Rental Payment
Amount: Clearly state the monthly or annual rental amount for the subleased space.
Payment Schedule: Specify the due date for rental payments.
Late Fees: Outline any late fees or penalties for missed or late payments.
Security Deposit
Amount: Indicate the amount of the security deposit required from the subtenant.
Purpose: Explain the purpose of the security deposit, such as covering damages or unpaid rent.
Refund Policy: Describe the terms and conditions for refunding the security deposit upon termination of the sublease.
Use of the Subleased Space
Permitted Uses: Specify the intended use of the subleased space, ensuring it aligns with the terms of the original lease.
Prohibited Uses: Outline any activities or uses that are prohibited within the subleased space.
Maintenance and Repairs
Sublessor’s Responsibilities: Clearly define the sublessor’s obligations for maintaining common areas and structural elements.
Subtenant’s Responsibilities: Specify the subtenant’s responsibilities for maintaining the interior of the subleased space.
Utilities and Expenses
Allocation: Determine how utilities and other expenses will be allocated between the sublessor and the subtenant.
Payment Responsibility: Specify who is responsible for paying utilities and other expenses.
Assignment and Subletting
Restrictions: Outline any restrictions on the subtenant’s ability to assign or sublet the subleased space.
Default and Remedies
Default Events: Define events that constitute a default by either party.
Remedies: Specify the remedies available to the non-defaulting party in the event of a default.
Dispute Resolution
Mediation or Arbitration: Consider including provisions for mediation or arbitration to resolve disputes.
Entire Agreement
Merger Clause: State that the sublease agreement constitutes the entire agreement between the parties, superseding any prior or contemporaneous agreements.
Governing Law
Jurisdiction: Specify the governing law that will apply to the sublease agreement.
Notices
Method: Indicate the method for providing notices, such as in writing or by email.
Signatures
Execution: Both the sublessor and the subtenant must sign the agreement to make it legally binding.
Design Elements for Professionalism and Trust
To convey professionalism and trust, consider the following design elements when creating your sublease commercial agreement template:
Clear and Concise Language: Use plain, straightforward language that is easy to understand.
Consistent Formatting: Maintain consistent formatting throughout the document, including font, spacing, and headings.
Professional Layout: Use a professional layout that is visually appealing and easy to read.
Branding: If applicable, incorporate your company’s branding elements into the template.
Legal Disclaimer: Include a disclaimer stating that the template is a general guide and should not be considered legal advice.
By incorporating these elements, you can create a sublease commercial agreement template that is both professional and effective in protecting the interests of both the sublessor and the subtenant.
