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I. THE PARTIES. This Commercial Sublease Agreement (“Agreement”) is made on
_________________, 20____, by and between:
Landlord: _________________ (“Landlord”), with a mailing address of
__________________________________, and
Tenant: _________________ (“Tenant”), with a mailing address of
__________________________________, and
Subtenant: _________________ (“Subtenant”), with a mailing address of
HEREINAFTER the Landlord, Tenant, and Subtenant shall be collectively referred to as
the “Parties” and agree as follows:
II. ORIGINAL LEASE. The Parties recognize that the Tenant is subletting the Premises
described in Section 3 of this Agreement. This Agreement shall be subject to the terms
and conditions of the master lease (“Master Lease”) that exists between the Landlord
and Tenant and dated _________________, 20____.
III. DESCRIPTION OF LEASED PREMISES. The Tenant agrees to lease to the
a.) Mailing Address: ________________________________________________
b.) Square Feet: ____ SF
c.) Type of Space: _______________ [e.g., retail, office, industrial).
d.) Additional Description: ___________________________________________
Hereinafter known as the “Premises”.
IV. SUBLET. The Tenant agrees to sublet: (check one)
- All of the space under the Master Lease.
- Part of the space under the Master Lease.
V. ATTACHED PLAN. The Tenant: (check one)
- Has attached a floorplan/layout to this Agreement.
- Has not attached a floorplan/layout to this Agreement.
VI. USE OF LEASED PREMISES. The Tenant is leasing the Premises to the Subtenant
and the Subtenant is hereby agreeing to lease the Premises for the following use and
purpose: ______________________________________________________________
Any change in use or purpose the Premises other than as described above shall be
upon prior written consent of Tenant only.
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VII. LEASE TYPE. This Agreement is a: (check one)
- Fixed Lease. The Tenant shall be allowed to occupy the Premises starting
on _________________, 20____, and end on _________________, 20____
(“Lease Term”). At the end of the Lease Term and no renewal is made, the
Tenant: (check one)
- May continue to lease the Premises under the same terms of this
Agreement under a month-to-month arrangement.
- Must vacate the Premises.
- Month-to-Month Lease. The Tenant shall be allowed to occupy the Premises
on a month-to-month arrangement starting on _________________, 20____,
and ending upon notice of ____ days from either Party to the other Party (“Lease
VIII. RENT. The net monthly payment from the Subtenant shall be
$_________________, payable monthly with the first payment due on the
commencement of this Agreement and each monthly installment payable thereafter on
the ____ day of each month (“Rent”).
The Rent amounts shall be for the following periods:
Period 1
Rent: $_________________
Start Date: _______________, 20____ End Date _______________, 20____
Period 2
Rent: $_________________
Start Date: _______________, 20____ End Date _______________, 20____
Period 3
Rent: $_________________
Start Date: _______________, 20____ End Date _______________, 20____
Rent for any period during the term hereon, which is for less than one (1) month shall be
a pro-rata portion of the monthly rent.
IX. OPTION TO RENEW. The Subtenant: (check one)
- May not renew this Agreement.
- May have the right to renew this Agreement with a total of ____ renewal
period(s) with each term being ____ year(s) ____ month(s) which may be
exercised by giving written notice to Tenant no less than 60 days prior to the
expiration of the Agreement or renewal period.
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Rent for each option period shall: (check one)
- Not increase.
- Increase by: (check one)
- ____%
- $__________
- The amount calculated by multiplying the Rent by the annual
change in the Consumer Price Index (CPI) published by the Bureau
of Labor Statistics by the most recent publication to the option
period start date.
- Other: _____________________________________________
X. EXPENSES. (check and initial one)
- GROSS. Subtenant’s Initials ____ Tenant’s Initials ____
It is the intention of the Parties that this Agreement be considered a
“Gross Lease” and as such, the Rent is the entirety of the monthly
rent. Therefore, the Subtenant is not obligated to pay any additional
expenses which may include utilities, real estate taxes, insurance
(other than on the Subtenant’s personal property), charges or
expenses of any nature whatsoever in connection with the
ownership and operation of the Premises. The Landlord shall be
obligated to maintain the general exterior structure of the Premises
and shall maintain all major systems such as the heating, plumbing,
and electrical. The parking area shall be maintained by the
Landlord including the removal of any snow or environmental
hazards as well as the grounds and lands surrounding the
Premises. The Subtenant shall maintain at their expense casualty
insurance for the Premises against loss by fire which may or may
not include any extended coverage. The Subtenant will provide and
maintain personal liability and property damage insurance as a
lessee, at least to the limits of One Million Dollars ($1,000,000.00),
that will designate the Landlord and Tenant as an "also named
insured” and shall provide the Landlord and Tenant with a copy of
such insurance certification or policy prior to the effective date of
this Agreement.
- MODIFIED GROSS. Subtenant’s Initials ____ Tenant’s Initials ____
It is the intention of the Parties that this Agreement shall be
considered a “Modified Gross Lease”.
In addition to the Rent, the Subtenant shall be obligated to pay the
following monthly expenses:
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Tenant shall pay the following monthly expenses:
- TRIPLE-NET (NNN). Subtenant’s Initials ____ Tenant’s Initials ____
It is the intention of the Parties that this Agreement shall be
considered a “Triple Net Lease”.
a.) Operating Expenses. The Tenant shall have no obligation to
provide any services, perform any acts, or pay expenses, charges,
obligations or costs of any kind whatsoever with respect to the
Premises. The Subtenant hereby agrees to pay one hundred
percent (100%) of any and all Operating Expenses as hereafter
defined for the entire term of the Agreement and any extensions
thereof in accordance with specific provisions hereinafter set forth.
The term “Operating Expenses” shall include all costs to the Tenant
of operating and maintaining the Premises, and shall include,
without limitation, real estate and personal property taxes and
assessments, management fee(s), heating, air conditioning, HVAC,
electricity, water, waste disposal, sewage, operating materials and
supplies, service agreements and charges, lawn care, snow
removal, restriping, repairs, repaving, cleaning and custodial,
security, insurance, the cost of contesting the validity or applicability
of any governmental acts which may affect operating expenses,
and all other direct operating costs of operating and maintaining the
Premises and related parking areas, unless expressly excluded
from operating expenses.
b.) Taxes. Subtenant shall pay, during the term of this Agreement,
the real estate taxes including any special taxes or assessments
(collectively, the "taxes") attributable to the Premises and accruing
during such term. Subtenant, at Tenant’s option, shall pay to
Tenant said taxes on a monthly basis, based on one-twelfth (1/12)
of the estimated annual amount for taxes. Taxes for any fractional
calendar year during the term hereof shall be prorated. In the event
the Subtenant does not make any tax payment required hereunder,
Subtenant shall be in default of this Agreement.
c.) Insurance. Subtenant shall maintain, at all times during the
Lease Term, comprehensive general liability insurance in an
insurance company licensed to do business in the State in which
the Premises are located and that is satisfactory to the Landlord
and Tenant, properly protecting and indemnifying the Landlord and
Tenant with single limit coverage of not less than
______________________ dollars ($__________________) for
injury to or ______________________ dollars
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($__________________) death of persons and
______________________ dollars ($__________________) for
property damage. During the Lease Term, Subtenant shall furnish
the Landlord and Tenant with certificate(s) of insurance, in a form
acceptable to the Landlord and Tenant, covering such insurance so
maintained by Subtenant and naming the Landlord and Tenant and
Landlord’s mortgagees, if any, as additional insured.
XI. SECURITY DEPOSIT. In addition to the above, a deposit in the amount of
______________________ dollars ($__________________) shall be due and payable
in advance or at the signing of this Agreement, hereinafter referred to as the “Security
Deposit”, and shall be held in escrow by the Tenant in a separate, interest-bearing
savings account as security for the faithful performance of the terms and conditions of
the Agreement. The Security Deposit may not be used to pay the last month’s rent
unless written permission is granted by the Tenant.
XII. LEASEHOLD IMPROVEMENTS. The Subtenant agrees that no leasehold
improvements, alterations or changes of any nature, (except for those listed on any
attached addenda) shall be made to the leasehold Premises or the exterior of the
building without first obtaining the consent of the Tenant in writing, which consent shall
not be unreasonably withheld, and thereafter, any and all leasehold improvements
made to the Premises which become affixed or attached to the leasehold Premises
shall remain the property of the Tenant at the expiration or termination of this
Agreement. Furthermore, any leasehold improvements shall be made only in
accordance with applicable federal, state or local codes, ordinances or regulations,
having due regard for the type of construction of the building housing the subject
leasehold Premises. If the Subtenant makes any improvements to the Premises, the
Subtenant shall be responsible payment, except the following: ____________________
Nothing in the Agreement shall be construed to authorize the Subtenant or any other
person acting for the Subtenant to encumber the rents of the Premises or the interest of
the Subtenant in the Premises or any person under and through whom the Subtenant
has acquired its interest in the Premises with a mechanic’s lien or any other type of
encumbrance. Under no circumstance shall the Subtenant be construed to be the
agent, employee or representative of the Tenant. In the event a lien is placed against
the Premises, through actions of the Subtenant, Subtenant will promptly pay the same
or bond against the same and take steps immediately to have such lien removed. If the
Subtenant fails to have the Lien removed, the Tenant shall take steps to remove the lien
and the Subtenant shall pay Tenant for all expenses related to the Lien and removal
thereof and shall be in default of this Agreement.
XIII. LICENSES AND PERMITS. A copy of any and all local, state or federal permits
acquired by the Subtenant which are required for the use of the Premises shall be kept
on site at all times and shall be readily accessible and produced to the Tenant,
Landlord, and/or their agents or any local, state, or federal officials upon demand.
XIV. OBLIGATIONS OF SUBTENANT. The Subtenant shall be primarily responsible
whenever needed for the maintenance and general pickup of the entranceway leading
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into the Premises, so that this is kept in a neat, safe and presentable condition. The
Subtenant shall also be responsible for all minor repairs and maintenance of the
leasehold Premises, particularly those items which need immediate attention and which
the Subtenant, or their employees, can do and perform on their own, including but not
limited to the replacement of light bulbs, as well as the normal repair and cleaning of
windows, cleaning and clearing of toilets, etc., and the Subtenant shall properly
maintain the Premises in a good, safe, and clean condition. The Subtenant shall
properly and promptly remove all rubbish and hazardous wastes and see that the same
are properly disposed of according to all local, state or federal laws, rules, regulations or
In the event the structure of the Premises is damaged as a result of any neglect or
negligence of Subtenant, their employees, agents, business invitees, or any
independent contractors serving the Subtenant or in any way as a result of Subtenant’s
use and occupancy of the Premises, then the Subtenant shall be primarily responsible
for seeing that the proper claims are placed with the Subtenant’s insurance company, or
the damaging party's insurance company, and shall furthermore be responsible for
seeing that the building is safeguarded with respect to said damage and that all proper
notices with respect to said damage are made in a timely fashion, including notice to the
Tenant and the party or parties causing said damage. Any damage that is not covered
by an insurance company will be the liability of the Subtenant.
The Subtenant shall, during the term of this Agreement, and in the renewal thereof, at
its sole expense, keep the interior of the Premises in as good a condition and repair as
it is at the date of this Agreement, reasonable wear and use excepted. This obligation
would include the obligation to replace any plate glass damaged as a result of the
neglect or acts of Subtenant or her guests or invitees. Furthermore, the Subtenant shall
not knowingly commit nor permit to be committed any act or thing contrary to the rules
and regulations prescribed from time to time by any federal, state or local authorities
and shall expressly not be allowed to keep or maintain any hazardous waste materials
or contaminates on the Premises. Subtenant shall also be responsible for the cost, if
any, which would be incurred to bring her contemplated operation and business activity
into compliance with any law or regulation of a federal, state or local authority.
XV. INSURANCE. In the event the Subtenant fails to obtain insurance required
hereunder and fails to maintain the same in force continuously during the term, Tenant
may, but shall not be required to, obtain the same and charge the Subtenant for same
as additional rent. Furthermore, Subtenant agrees not to keep upon the Premises any
articles or goods which may be prohibited by the standard form of fire insurance policy,
and in the event the insurance rates applicable to fire and extended coverage covering
the Premises shall be increased by reason of any use of the Premises made by
Subtenant, then Subtenant shall pay to Tenant, upon demand, such increase in
insurance premium as shall be caused by said use or Subtenant’s proportionate share
of any such increase.
XVI. SUBLET/ASSIGNMENT. The Subtenant may not transfer or assign this
Agreement, or any right or interest hereunder or sublet said leased Premises or any part
thereof without first obtaining the prior written consent and approval of the Tenant.
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XVII. DAMAGE TO LEASED PREMISES. In the event the building housing the
Premises shall be destroyed or damaged as a result of any fire or other casualty which
is not the result of the intentional acts or neglect of Subtenant and which precludes or
adversely affects the Subtenant’s occupancy of the Premises, then in every such cause,
the Rent herein set forth shall be abated or adjusted according to the extent to which
the leased Premises have been rendered unfit for use and occupation by the Subtenant
and until the demised Premises have been put in a condition at the expense of the
Tenant, at least to the extent of the value and as nearly as possible to the condition of
the Premises existing immediately prior to such damage. It is understood, however, in
the event of total or substantial destruction to the Premises that in no event shall the
Tenant’s obligation to restore, replace or rebuild exceed an amount equal to the sum of
the insurance proceeds available for reconstruction with respect to said damage.
XVIII. DEFAULT AND POSSESSION. In the event that the Subtenant shall fail to pay
said Rent and expenses as set forth herein, or any part thereof, when the same are due
and payable, or shall otherwise be in default of any other terms of said Agreement for a
period of more than 15 days, after receiving notice of said default, then the parties
hereto expressly agree and covenant that the Tenant may declare the Agreement
terminated and may immediately re-enter said Premises and take possession of the
same together with any of Subtenant’s personal property, equipment or fixtures left on
the Premises which items may be held by the Tenant as security for the Subtenant’s
eventual payment and/or satisfaction of rental defaults or other defaults of Subtenant
under the Agreement. It is further agreed that if the Subtenant is in default, the Tenant
shall be entitled to take any and all action to protect its interest in the personal property
and equipment, to prevent the unauthorized removal of said property or equipment
which threatened action would be deemed to constitute irreparable harm and injury to
the Tenant in violation of its security interest in said items of personal property.
Furthermore, in the event of default, the Tenant may expressly undertake all reasonable
preparations and efforts to release the Premises including, but not limited to, the
removal of all inventory, equipment or leasehold improvements of the Subtenant’s, at
the Subtenant’s expense, without the need to first procure an order of any court to do
so, although obligated in the interim to undertake reasonable steps and procedures to
safeguard the value of Subtenant’s property, including the storage of the same, under
reasonable terms and conditions at Subtenant’s expense, and, in addition, it is
understood that the Tenant may sue the Subtenant for any damages or past rents due
and owing and may undertake all and additional legal remedies then available.
In the event any legal action has to be instituted to enforce any terms or provisions
under this Agreement, then the prevailing party in said action shall be entitled to recover
a reasonable attorney's fee in addition to all costs of said action.
Rent which is in default for more than _____ days after due date shall accrue a payment
penalty of one of the following: (check one)
- Interest at a rate of _______________ percent (_____%) per annum on a
daily basis until the amount is paid in full.
- Late fee of ______________________ dollars ($__________________) per
day until the amount is paid in full.
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In this regard, all delinquent rental payments made shall be applied first toward interest
due and the remaining toward delinquent rental payments.
XIX. INDEMNIFICATION. The Subtenant hereby covenants and agrees to indemnify,
defend and hold the Tenant harmless from any and all claims or liabilities which may
arise from any cause whatsoever as a result of Subtenant’s use and occupancy of the
Premises, and further shall indemnify the Tenant for any losses which the Tenant may
suffer in connection with the Subtenant’s use and occupancy or care, custody and
control of the Premises. The Subtenant also hereby covenants and agrees to indemnify
and hold harmless the Tenant from any and all claims or liabilities which may arise from
any latent defects in the subject Premises that the Tenant is not aware of at the signing
of the lease or at any time during the Lease Term.
XX. BANKRUPTCY - INSOLVENCY. The Subtenant agrees that in the event all or a
substantial portion of the Subtenant’s assets are placed in the hands of a receiver or a
Trustee, and such status continues for a period of 30 days, or should the Subtenant
make an assignment for the benefit of creditors or be adjudicated bankrupt, or should
the Subtenant institute any proceedings under the bankruptcy act or any amendment
thereto, then such Agreement or interest in and to the leased Premises shall not
become an asset in any such proceedings and, in such event, and in addition to any
and all other remedies of the Tenant hereunder or by law provided, it shall be lawful for
the Tenant to declare the term hereof ended and to re-enter the leased land and take
possession thereof and all improvements thereon and to remove all persons therefrom
and the Subtenant shall have no further claim thereon.
XXI. SUBORDINATION AND ATTORNMENT. Upon request of the Tenant, Subtenant
will subordinate its rights hereunder to the lien of any mortgage now or hereafter in force
against the property or any portion thereof, and to all advances made or hereafter to be
made upon the security thereof, and to any ground or underlying lease of the property;
provided, however, that in such case the holder of such mortgage, or the Tenant under
such Agreement, shall agree that this Agreement shall not be divested or in any way
affected by foreclosure, or other default proceedings under said mortgage, obligation
secured thereby, or Agreement, so long as the Subtenant shall not be in default under
the terms of this Agreement. Subtenant agrees that this Agreement shall remain in full
force and effect notwithstanding any such default proceedings under said mortgage or
obligation secured thereby.
Subtenant shall, in the event of the sale or assignment of Tenant's interest in the
building of which the Premises form a part, or in the event of any proceedings brought
for the foreclosure of the Premises, or in the event of exercise of the power of sale
under any mortgage made by Tenant covering the Premises, attorn to the purchaser
and recognize such purchaser as Tenant under this Agreement.
a.) Usage by Subtenant. Subtenant shall comply with all rules, regulations and laws of
any governmental authority with respect to use and occupancy. Subtenant shall not
conduct or permit to be conducted upon the Premises any business or permit any act
which is contrary to or in violation of any law, rules or regulations and requirements that
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may be imposed by any authority or any insurance company with which the Premises is
insured, nor will the Subtenant allow the Premises to be used in any way which will
invalidate or be in conflict with any insurance policies applicable to the building. In no
event shall explosives or extra hazardous materials be taken onto or retained on the
Premises. Furthermore, Subtenant shall not install or use any equipment that will cause
undue interference with the peaceable and quiet enjoyment of the Premises by other
tenants of the building.
b.) Signs. Subtenant shall not place on any exterior door, wall or window of the
Premises any sign or advertising matter without Tenant’s prior written consent and the
approval of the local and State municipalities. Thereafter, Subtenant agrees to maintain
such sign or advertising matter as first approved by Tenant in good condition and repair.
Furthermore, Subtenant shall conform to any uniform reasonable sign plan or policy that
the Tenant may introduce with respect to the building. Upon vacating the Premises,
Subtenant agrees to remove all signs and to repair all damages caused or resulting
from such removal.
c.) Pets. Unless otherwise stated in this Agreement, the only pets that shall be allowed
on the Premises are those needed legally due to a disability or handicap.
d.) Condition of Premises/Inspection by Subtenant. The Subtenant has had the
opportunity to inspect the Premises and acknowledges with its signature on this
Agreement that the Premises are in good condition and comply in all respects with the
requirements of this Agreement. Furthermore, the Tenant makes no representation or
warranty with respect to the condition of the Premises or its fitness or availability for any
particular use, and the Tenant shall not be liable for any latent or patent defect therein.
Furthermore, the Subtenant represents that Subtenant has inspected the Premises and
is leasing and will take possession of the Premises with all current fixtures present in
their “as is” condition as of the date hereof.
e.) Right of Entry. It is agreed and understood that the Tenant and its agents shall have
the complete and unencumbered right of entry to the Premises at any time or times for
purposes of inspecting or showing the Premises and for the purpose of making any
necessary repairs to the building or equipment as may be required of the Tenant under
the terms of this Agreement or as may be deemed necessary with respect to the
inspection, maintenance or repair of the building.
XXIII. ESTOPPEL CERTIFICATE. Subtenant at any time and from time to time, upon at
least ten (10) days prior notice by Tenant, shall execute, acknowledge and deliver to
Tenant, and/or to any other person, firm or corporation specified by Tenant, a statement
certifying that the Agreement is unmodified and in full force and effect, or if the
Agreement has been modified, then that the same is in full force and effect except as
modified and stating the modifications, stating the dates to which the fixed rent and
additional rent have been paid, and stating whether or not there exists any default by
Tenant under this Agreement and, if so, specifying each such default.
XXIV. HOLDOVER. Should Subtenant remain in possession of the Premises after the
cancellation, expiration or sooner termination of the Agreement, or any renewal thereof,
without the execution of a new agreement or addendum, such holding over in the
absence of a written agreement to the contrary shall be deemed, if Tenant so elects, to
have created and be construed to be a tenancy from month to month, terminable upon
thirty (30) days’ notice by either party.
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XXV. WAIVER. Waiver by Tenant of a default under this Agreement shall not constitute
a waiver of a subsequent default of any nature.
XXVI. GOVERNING LAW. This Agreement shall be governed by the laws of the state of
XXVII. NOTICES. Payments and notices shall be addressed to the following:
XXVIII. AMENDMENT. No amendment of this Agreement shall be effective unless
reduced to writing and subscribed by the Parties with all the formality of the original.
XXIX. BINDING EFFECT. This Agreement and any amendments thereto shall be
binding upon the Tenant and the Subtenant and/or their respective successors, heirs,
assigns, executors and administrators.
XXX. ADDITIONAL TERMS & CONDITIONS. _________________________________
IN WITNESS WHEREOF, the parties hereto set their hands and seal this ____ day of
_________________, 20____.
Tenant’s Signature _____________________________ Date ______________
Print Name _____________________________
Landlord’s Signature _____________________________ Date ______________
Print Name _____________________________
Subtenant’s Signature _____________________________ Date ______________
Print Name _____________________________