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Sublease Agreement Commercial

Leaseholders of commercial property regularly sublease all or a portion of their leased property to a third party. Under the terms of a commercial sublease agreement, the third party shares or takes over the rented property and pays rent to the original leaseholder, who in turn pays the landlord of the property. In some cases, the number of employees working in a leased commercial space may be reduced, leaving unused office space. A third party can then use and/or share the space by entering into a sublease agreement. Commercial properties also sometimes become too expensive for the original leaseholders to afford, and are subleased to avoid the penalties that could occur from breaking a lease. An モapproval clauseヤ is often included in most commercial leases, requiring a tenant to request approval from a landlord before subleasing a property. A landlord may withhold consent with a reasonable commercial objection, for example if the nature of the business that will be conducted by the sublessee is unfit for the particular building.

Fast Facts

  • In Chicago, commercial sublease space increased 40% during the first quarter of 2009 to 3.8 million feet.
  • In 2003, commercial sublease space typically rented for 20% less than direct space.

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