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.
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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
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
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
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