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Subleasing Pointers: The Perspective of a Prime Landlord, Sublandlord, and Subtenant

By Alison Jones, Randy Luffman and Natosha O. Reid

Part One of a Three-Part Series

Subleasing has become so common in commercial leasing today that space users, brokers, and attorneys need to be aware of the many issues that arise in these transactions. The Prime Landlord is faced with a new occupant in its building that it may or may not have contemplated. The Sublandlord needs to minimize the exposure that may come with new responsibilities of being a landlord. The Subtenant may find itself in the awkward position of looking to the Prime Landlord for the provision of services, without the comfort of privity of contract to enforce the Prime Landlord's obligations. Nonetheless, over the years, Prime Landlords, Sublandlords, and Subtenants have negotiated their way around these potential pitfalls. This three-part article provides a few pointers for the Prime Landlord, Sublandlord, and Subtenant to consider when negotiating provisions relating to subleasing.

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