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Assignment and Subleasing Toolkit (National and Select States)
Practical Law Toolkit 3-600-8965 (Approx. 18 pages)
Assignment and Subleasing Toolkit (National and Select States)
by Practical Law Real Estate
| Maintained • ExpandCalifornia, Florida, Illinois...Massachusetts, New Jersey, New York, Pennsylvania, Texas, USA (National/Federal) |
Resources to assist landlords, tenants, assignees, and subtenants in drafting and negotiating commercial assignments and subleases, agreements related to assignments and subleases, and assignment and subleasing clauses in commercial leases.
Having the ability to transfer its rights in the premises to a third party gives the tenant needed flexibility if its business changes. Assigning the lease or subleasing all or a portion of the premises can be an important exit strategy if the tenant outgrows the space or needs to downsize.
The landlord and the tenant have conflicting interests that are particularly evident during the negotiation of the assignment and subletting clause, including that:
- The landlord wants to maintain as much control as possible over the party using and occupying the premises.
- The tenant wants as much flexibility as possible to:
- successfully navigate any future changes in its business; and
- potentially alleviate its costs associated with the premises.
This Toolkit contains links to continuously maintained Practice Notes, Standard Documents, and Standard Clauses to help counsel for landlords and tenants draft and negotiate assignment and subleasing clauses and manage the assignment and subleasing process. It includes resources developed for use in particular states and jurisdictionally neutral resources that are useful and relevant to landlords and tenants in every state.