Free Commercial Sublease Agreement

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Commercial Sublease Agreement


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Your Commercial Sublease Agreement

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THIS SUBLEASE dated this ________ day of ________________, ________


(the "Sublandlord")


- AND -

(the "Subtenant")



  1. This is an agreement (the "Sublease") to sublet real property according to the terms specified below.
  2. The master lease (the "Master Lease") is dated July 14, 2024 and is between ____________________ (the "Landlord") and the Sublandlord with respect to the following lands and any improvements on those lands (the "Premises"): __________________________________________________________________________
  3. The Subtenant is willing to undertake certain obligations of the Master Lease.

IN CONSIDERATION OF the Sublandlord subletting and the Subtenant renting the Subleased Premises, both parties agree to keep, perform and fulfill the promises, conditions and agreements below:

  1. Subleased Premises
  2. The Sublandlord leases to the Subtenant all of the Premises (the "Subleased Premises").
  3. Term
  4. The term (the "Term") of this Sublease commences at 12:00 noon on July 14, 2024 and ends at 12:00 noon on July 15, 2024.
  5. The provisions of this Sublease are subject to the terms and restrictions of the Master Lease.
  6. Rent
  7. The amount of rent and the conditions of payment are the same as under the Master Lease.
  8. The Subtenant will deliver or send the rent to the Sublandlord at ____________________________________________________________
  9. Use of Subleased Premises
  10. Except as otherwise provided in this Sublease, the Subtenant and the agents and employees of the Subtenant will only use the Subleased Premises for a purpose consistent with the permitted use allowed in the Master Lease. Further, the Subtenant agrees to comply with all other applicable provisions of the Master Lease, and will not do anything that would constitute a violation of any part or condition of the Master Lease.
  11. Utilities
  12. All payments for utilities and other similar charges for the Subleased Premises are included in the Rent.
  13. Maintenance and Repairs
  14. The Subtenant agrees to surrender and deliver to the Sublandlord the Subleased Premises and all furniture and decorations within the Subleased Premises in as good a condition as they were at the beginning of the Term, reasonable wear and tear excepted.  The Subtenant will be liable to the Sublandlord and the Landlord for any damages occurring to the Subleased Premises or the contents of the Subleased Premises or to the building which are done by the Subtenant or the Subtenant's guests.
  15. The Subtenant will immediately report all general maintenance issues and needed repairs to the Sublandlord and the Landlord.
  16. Alterations and Improvements
  17. The Subtenant may not make any alterations or improvements to the Subleased Premises.
  18. Taxes
  19. The Subtenant will pay any privilege, excise and other taxes duly assessed against the business of the Subtenant, the Subleased Premises and any personal property on or about the Subleased Premises. The Subtenant will avoid the assessment of any late fees or penalties.
  20. Event of Default
  21. The Subtenant will default under this Sublease if any one or more of the following events (the "Event of Default") occurs:
    1. The Subtenant fails to pay the Rent to the Sublandlord or any amount of it when due or within any grace period, if any.
    2. The Subtenant fails to perform any of its obligations under this Sublease or any applicable obligation under the Master Lease.
    3. The Subtenant becomes insolvent, commits an act of bankruptcy, becomes bankrupt, takes the benefit of any legislation that may be in force for bankrupt or insolvent debtors, becomes involved in a voluntary or involuntary winding up, dissolution or liquidation proceeding, or if a receiver will be appointed for the affairs of the Subtenant.
    4. The Subtenant abandons the Subleased Premises or any part of the Subleased Premises.
    5. The Subtenant uses the Subleased Premises for any unpermitted or illegal purposes.
    6. The Subtenant fails to commence, diligently pursue, and complete the Subtenant's work to be performed pursuant to this Sublease pertaining to the Subleased Premises.
    7. The Subleased Premises, or any part of the Subleased Premises is completely or partially damaged by fire or other casualty that is due to the Subtenant's negligence, wilful act, or that of the Subtenant's employee, family, agent, or guest.
    8. Any other event of default provided in the Master Lease or the Act.
  22. Remedies
  23. Upon the occurrence of any Event of Default, the Sublandlord has any or all of the following remedies:
    1. Terminate the Sublease upon the greater of any notice required in the Master Lease or the Act and the Term will then immediately become forfeited and void.
    2. The Sublandlord may, but is not obligated to, perform on behalf of the Subtenant, any obligation of this Sublease or the Master Lease which the Subtenant has failed to perform. The Sublandlord may seek redress from the Subtenant for such performance.
    3. The Sublandlord may reenter the Subleased Premises or any part of the Subleased Premises and in the name of the whole repossess and enjoy the same as of its former state anything contained within the Subleased Premises.
    4. Any other remedy provided in the Master Lease or the Act.
  24. No reference to or exercise of any specific right or remedy by the Sublandlord will prejudice or preclude the Sublandlord from any other remedy whether allowed at law or in equity or expressly provided for in this Sublease or the Master Lease. No such remedy will be exclusive or dependent upon any other such remedy, but the Sublandlord may from time to time exercise any one or more of such remedies independently or in combination.
  25. Upon the expiration, termination or cancellation of the Master Lease or this Sublease, all obligations of the parties under this Sublease will be extinguished.
  26. Any improvements remaining on the Subleased Premises upon termination will revert to the Sublandlord and will be free of any encumbrance at the time of such reversion.
  27. Surrender of Premises
  28. At the expiration of the Term of this Sublease, the Subtenant will quit and surrender the Premises in as good a state and condition as they were at the commencement of this Lease, reasonable use and wear and damages by the elements excepted.
  29. Governing Law
  30. It is the intention of the parties to this Sublease that the tenancy created by this Sublease and the performance under this Sublease, and all suits and special proceedings under this Sublease, be construed in accordance with and governed, to the exclusion of the law of any other forum, by the laws of England, without regard to the jurisdiction in which any action or special proceeding may be instituted.
  31. Severability
  32. If there is a conflict between any provision of this Sublease and the applicable legislation of England (the "Act"), the Act will prevail and such provisions of the Sublease will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporated into this Sublease.
  33. In the event that any of the provisions of this Sublease will be held to be invalid or unenforceable in whole or in part, those provisions to the extent enforceable and all other provisions will nevertheless continue to be valid and enforceable as though the invalid or unenforceable parts had not been included in this Sublease and the remaining provisions had been executed by both parties subsequent to the expungement of the invalid provision.
  34. Assignment and Subletting
  35. The Subtenant will not assign, transfer or further sublet the Subleased Premises or any part of the Subleased Premises without the prior written consent of the Sublandlord and the Landlord.
  36. Notices
  37. Unless otherwise specifically provided in this Sublease, all notices from the Subtenant to the Sublandlord will be served or sent to the Sublandlord at the following address:
  38. Unless otherwise specifically provided in this Sublease, all notices from the Sublandlord to the Subtenant will be served or sent to the Subtenant at the following address:
  39. All notices to be given under this Sublease will be in writing and will be served personally or sent by certified or registered mail.
  40. Master Lease
  41. Except as otherwise expressly provided in this Sublease, the Subtenant will perform all applicable duties and obligations of the Sublandlord under the Master Lease from July 14, 2024 until the end of the Term of this Sublease.
  42. Except as otherwise expressly provided in this Sublease, the Sublandlord will have, as to the Subtenant, all applicable rights and remedies that the Landlord has with respect to the Sublandlord in the Master Lease.
  43. This Sublease contains all of the conditions and terms made between the parties to this Sublease, and may not be modified orally or in any other manner other than by agreement in writing signed by all parties to this Sublease or their respective successors in interest.
  44. This Sublease incorporates and is subject to the Master Lease, a copy of which has been or will be later provided to the Subtenant, and which is incorporated as if it were set out in this Sublease.
  45. General Provisions
  46. In the event of any legal action concerning this Sublease, the losing party will pay to the prevailing party reasonable attorney's fees and court costs to be fixed by the court and such judgment will be entered.
  47. The Sublandlord may enter the Subleased Premises upon 24 hours notice for any of the following reasons:
    1. to inspect the Subleased Premises;
    2. to maintain the Subleased Premises; or
    3. to make repairs that the Sublandlord is obligated to perform.
  48. This Sublease will extend to and be binding upon and inure to the benefit of the respective heirs, executors, administrators, successors and assigns, as the case may be, of each party to this Sublease. All covenants are to be construed as conditions of this Sublease.
  49. All sums payable by the Subtenant to the Sublandlord under any provision of this Sublease will be deemed to be additional rent and will be recovered by the Sublandlord as rental arrears.
  50. Where there is more than one Subtenant executing this Sublease, all Subtenants are jointly and severally liable for each other's acts, omissions and liabilities under this Sublease.
  51. The Subtenant will be charged an additional amount of £25.00 for each N.S.F. cheque or cheque returned by the Subtenant's financial institution.
  52. All schedules to this Sublease are incorporated into and form an integral part of this Sublease.
  53. Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Sublease. Words in the singular mean and include the plural and vice versa. Words in the masculine include the feminine and vice versa. The words "Sublandlord" and "Subtenant" as used in this Sublease include the plural as well as the singular; no regard for gender is intended by the language in this Sublease.
  54. This Sublease may be executed in counterparts.
  55. Time is of the essence in this Sublease.
  56. The Sublandlord and the Subtenant have no interest or other rights of ownership in each other. The parties to this Sublease are not agents for each other. Under no circumstances will this Sublease be construed as creating a partnership or joint venture between the parties to this Sublease.
  57. Each signatory to this Sublease acknowledges receipt of an executed copy of this Sublease.
  58. This Sublease will not be valid and binding on the Sublandlord and Subtenant unless and until it has been completely executed by and delivered to both parties and the Landlord has consented to this Sublease.

IN WITNESS WHEREOF  the Sublandlord and the Subtenant have duly affixed their signatures under hand and seal on this ________ day of ________________, ________.





Consent of Landlord to Sublease

The undersigned, the landlord in the Master Lease of July 14, 2024, hereby acknowledges consent to the foregoing Sublease Agreement. The Landlord will provide both the Sublandlord and the Subtenant with notice of any breach by the Subtenant under the Master Lease.

Dated: __________________, 20____.



Last Updated February 16, 2024

Commercial Sublease Agreement Information

What is a Commercial Sublease Agreement?

A Commercial Sublease is a contract used to rent commercial property from a tenant rather than from a landlord or owner. In this case, the original tenant (i.e. the outgoing tenant) is known as the sublandlord and the new tenant (i.e. the incoming tenant) is known as the subtenant.

Although a new lease agreement is created between the sublandlord and the subtenant, the original lease (sometimes called the master lease) remains intact and the sublandlord is still responsible for reporting to the original landlord. Consequently, the terms outlined in a sublease cannot breach the terms outlined in the master lease.

LawDepot's Commercial Sublease can be customised to abide by the landlord and tenant laws in England, Northern Ireland, Scotland, and Wales.

What is included in a Commercial Sublease Agreement?

Generally, a Commercial Sublease contains information about:

  • The parties in the agreement
  • The original lease
  • The landlord's consent to sublease
  • Financial details (e.g. cost of rent, how rent is collected, if a damage deposit is required, and who is responsible for additional expenses like utilities and insurance)
  • Permitted uses of the commercial property (if the tenant is allowed to use the property for a different purpose than what is outlined in the master lease, or if alterations or improvements are allowed)

Keep in mind, the sublandlord cannot give the subtenant more rights than what the landlord gave them under the master lease. For example, a master lease could allow a tenant to use a property as a dental office. If a sublease is created from this master lease, the subtenant would be allowed to use the space as a dental office only. In this case, the tenant (now the sublandlord) is not breaching any terms in the master lease because they are not giving the new tenant more rights than what was originally provided. However, if the subtenant wanted to open another type of business, like a retail store, the sublandlord would not be able to authorise it without the landlord's written consent.

Typically, you must obtain written consent from your landlord before you can sublet a property. In most cases, a landlord will state in the master lease that subletting is either not permitted or is allowed with consent of the landlord. If nothing about subletting is specified in the master lease, you should ask for written permission. If a tenant sublets without the landlord's permission, the landlord can take legal action to evict the tenant from the property.

How do I sublet a lease?

When you sublet your Commercial Lease, your role changes from tenant to sublandlord and you take on new responsibilities, which means that you must ensure your subtenant's actions do not violate your original lease agreement. This means you'll need to address certain landlord obligations, such as:

  • Screening new tenants
  • Ensuring rent is paid
  • Maintaining the condition of the property
  • Protecting yourself from liabilities

LawDepot's Commercial Sublease Agreement helps you address some of these obligations by allowing you to include certain terms within the agreement, such as:

  • Requiring a check-in inspection and/or damage deposit
  • Establishing the area that is available to the tenant (some sublandlords choose to rent out only a portion of the commercial property, like an office space within a building)
  • Establishing the permitted uses of the premises (e.g. to be used only for retail)
  • Reducing the amount of changes the subtenant can make to the property (e.g. repainting the walls, expanding a store front, etc.)
  • Requiring the subtenant to obtain insurance

It's important to remember that a sublease is always subordinate to the original lease and can be terminated if the terms of the original lease are not met. Therefore, it's strongly recommended that a sublandlord and subtenant do their due diligence to ensure their Commercial Sublease Agreement preserves the integrity of the master lease.

Related Documents:

  • Commercial Lease Agreement: a contract that outlines the rights and responsibilities of a commercial landlord and tenant
  • Commercial Eviction and Renewal Notices: notice forms that landlords use to inform a tenant about the end of their lease or that tenants use to request a lease renewal
  • Equipment Hire Agreement: a contract that gives a party permission to rent equipment, such as storage and disposal units, from another party
  • Lease Assignment Agreement: a contract that transfers a tenant's right to and interest in a lease to another party
  • Indemnity Agreement: a contract that protects a party from personal liabilities that may arise from participating in a certain activity (such as entering into a sublease agreement) with another party
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Commercial Sublease Agreement

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