Do you have excess office space? Mazirow Commercial can find a suitable subtenant for your unused space. Having spent the last 30+ years in the thick of the commercial real estate market, we are aware of the needs for businesses looking to sublet available spaces.
Commercial sublease agreements
It can be profitable to sublet space in your office, but the process of creating a sublease agreement must be approached with caution. Signing a sublease contract establishes a legal relationship between you and your subtenant that is distinct from your existing relationship with your landlord. Nonetheless, your subtenant lease is circumscribed by the terms set forth in the master lease that is in place between you and your landlord. You may have to obtain permission from the landlord prior to entering into a sublet lease agreement.
Overtenants and undertenants
In a subtenant agreement, the entity subletting space is known as the overtenant, while the entity leasing space from them is the undertenant. To ensure best results and avoid legal trouble, the overtenant should evaluate all relevant factors that apply to the preparation of a lease agreement, including current and projected market conditions.
It is also important to understand that the failure of an undertenant to make a scheduled payment does not relieve the overtenant from any financial obligation to the landlord. A prospective undertenant should be properly screened in advance, and the sublease agreement must be carefully written to protect the overtenant’s rights and interests. Contact us for assistance if you plan to sublet office space.