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Sub Lease Contract Template for Australia

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Key Requirements PROMPT example:

Sub Lease Contract

"I need a Sub Lease Contract for a retail space in a shopping center in Melbourne, where my company will be sub-letting 100sqm to a Cafe operator for 3 years starting March 2025, with specific provisions for food preparation and shared facilities usage."

Document background
A Sub Lease Contract is essential when a tenant wishes to transfer part or all of their leased premises to another party while maintaining their original lease agreement with the landlord. This document is commonly used in Australian commercial, retail, and industrial contexts when businesses need to downsize, share space, or monetize excess capacity. The agreement must carefully balance the rights and obligations of all parties while ensuring compliance with Australian federal and state-specific property laws. It includes detailed provisions for rent, maintenance, insurance, permitted use, and default scenarios, while preserving the head landlord's interests and the integrity of the head lease. The sub-lease must operate within the constraints of the head lease and typically requires explicit landlord consent to be valid.
Suggested Sections

1. Parties: Identification of head landlord, head tenant (sub-landlord), and sub-tenant, including ABN/ACN and contact details

2. Background: Context of the sub-lease, reference to head lease, and confirmation of head landlord's consent

3. Definitions and Interpretation: Defined terms used throughout the agreement and rules for interpreting the document

4. Grant of Sub-lease: Formal creation of the sub-lease, specifying the premises and any included facilities or services

5. Term and Option Periods: Duration of the sub-lease, commencement date, expiry date, and any option periods

6. Rent and Other Payments: Rent amount, payment frequency, review mechanisms, and other financial obligations

7. Outgoings and Utilities: Responsibility for operational costs, utilities, and other property-related expenses

8. Security Deposit/Bank Guarantee: Details of security required, amount, form, and conditions for return

9. Use of Premises: Permitted use of the premises and any restrictions

10. Maintenance and Repairs: Responsibilities for maintaining and repairing different aspects of the premises

11. Insurance Requirements: Insurance obligations for both parties, including types and levels of coverage required

12. Sub-tenant's Obligations: Comprehensive list of sub-tenant's responsibilities and commitments

13. Sub-landlord's Obligations: Comprehensive list of sub-landlord's responsibilities and commitments

14. Assignment and Further Sub-letting: Conditions under which the sub-tenant may assign or further sub-let the premises

15. Default and Termination: Events of default, consequences, and termination procedures

16. Dispute Resolution: Process for resolving disputes between parties

17. Notices: Requirements for giving formal notices under the agreement

18. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and severability

Optional Sections

1. Fit-out Works: Include when the sub-tenant will be performing initial fit-out works to the premises

2. Make Good Obligations: Include when specific requirements for premises restoration at lease end are needed

3. Trading Hours: Include for retail premises or when specific operating hours are required

4. Environmental Obligations: Include when premises have specific environmental requirements or risks

5. Car Parking: Include when car parking spaces are part of the sub-lease

6. Building Rules: Include when premises are part of a larger building with specific rules

7. Signage Rights: Include when sub-tenant has specific signage requirements or rights

8. COVID-19 Provisions: Include specific provisions relating to pandemic-related restrictions or obligations

9. Right of First Refusal: Include when giving sub-tenant first right to lease additional space or extend term

10. Common Areas: Include when premises include rights to use common areas

Suggested Schedules

1. Schedule 1 - Premises Plan: Detailed plan showing the leased premises and any exclusive or common areas

2. Schedule 2 - Head Lease Provisions: Relevant provisions from head lease that affect sub-tenant

3. Schedule 3 - Rent Review Schedule: Detailed rent review mechanisms and calculations

4. Schedule 4 - Outgoings Schedule: Breakdown of outgoings and calculation methods

5. Schedule 5 - Fit-out Specifications: Detailed specifications for any approved fit-out works

6. Schedule 6 - Condition Report: Detailed report of premises condition at commencement

7. Schedule 7 - Building Rules: Detailed building rules and regulations

8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and specifications

9. Appendix A - Head Landlord's Consent: Written consent from head landlord for the sub-lease

10. Appendix B - Special Conditions: Any special or negotiated conditions specific to this sub-lease

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

Relevant legal definitions













































Clauses






































Relevant Industries

Real Estate

Retail

Commercial Property

Industrial

Professional Services

Hospitality

Healthcare

Education

Technology

Manufacturing

Logistics

Warehouse

Office Space

Relevant Teams

Legal

Operations

Facilities Management

Real Estate

Finance

Risk & Compliance

Property Management

Asset Management

Administration

Business Development

Relevant Roles

Property Manager

Facilities Manager

Legal Counsel

Real Estate Manager

Commercial Leasing Manager

Operations Director

Chief Financial Officer

Business Development Manager

Store Manager

Office Manager

Compliance Officer

Risk Manager

Asset Manager

Portfolio Manager

General Counsel

Chief Operating Officer

Industries










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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