Commercial Sublease Agreement Template
All states | 2 types
What Is a Commercial Sublease Agreement?
A commercial sublease agreement is a legal document that allows a tenant (sublessor) to rent out part or all of their leased commercial space to another party (sublessee). While the original lease stays in effect with the landlord, the sublease defines the terms between the tenant and subtenant, including rent, duration, and responsibilities.
When Should I Use a Commercial Sublease Agreement?
You should use a commercial sublease template when:
You want to lease out unused space in your rented commercial property.
You need to vacate the space early and find a subtenant to cover your lease.
You want to generate income from an unoccupied office, retail unit, or warehouse.
You need legal protection outlining responsibilities for rent, maintenance, and property use.
A well-structured sublease agreement helps clarify expectations and ensures compliance with your original lease.
What Should Be Included in a Commercial Sublease Agreement?
A complete commercial sublease form should include:
Landlord Consent – Written permission from the landlord is usually required to make the sublease valid.
Parties Involved – Full legal names and contact information for the sublessor and sublessee.
Property Description – The address and specific part of the property being subleased.
Sublease Term – The start and end dates of the sublease period.
Rent Terms – Monthly rent amount, due dates, and late fee policies.
Security Deposit – Amount held and conditions for return.
Permitted Use – Description of how the subleased space may be used (e.g., office, retail).
Maintenance & Utilities – Clarify who handles repairs, cleaning, and utility payments.
Insurance & Liability – Required insurance and who is responsible for damages or claims.
Termination Clause – Conditions under which either party can end the sublease early.
Compliance Clause – Sublessee must comply with the terms of the original lease.
Including these details ensures the agreement is enforceable and aligned with your responsibilities as the primary tenant.
Optional Clauses to Strengthen Your Commercial Sublease
Consider adding these optional clauses to tailor your commercial sublease agreement template to your situation:
Rent Adjustment Clause – Allows for rent increases over time or in response to changes in operating costs.
Force Majeure – Protects both parties from liability if the sublease can't be fulfilled due to natural disasters or events beyond control.
Indemnification – Requires the sublessee to cover any costs or legal claims related to their use of the space.
Subletting Restriction – Prevents the sublessee from subleasing the space again without written permission.
Dispute Resolution – Specifies how disagreements will be handled, such as through mediation or arbitration.
These clauses add clarity, flexibility, and legal protection for both sides.
How Do I Draft a Commercial Sublease Agreement
To create a professional and legally sound sublease agreement:
Start with a standart commercial sublease agreement template that includes all key sections.
Confirm whether your original lease allows subleasing and get written landlord consent.
Fill in specific details — parties, space, rent, term, and usage terms.
Add optional clauses that address your specific needs, such as liability or dispute resolution provisions.
Review everything with the sublessee and your landlord, if necessary.
Sign and date the agreement. Make sure all parties receive a copy.
A solid commercial sublease agreement protects your rights as the tenant and clearly outlines the expectations for the subtenant.
