Legal Advice During Challenging Times

Am I allowed to sublease a commercial property?

On Behalf of | Jun 25, 2023 | Real Estate Law |

Leasing commercial property is usually much more expensive than renting residential property. This is because commercial property tends to be much bigger and is intended for businesses. So when circumstances lead business owners to scale down, move elsewhere, or shut down altogether, they might want to consider subleasing a commercial property they no longer need as before.

Finding yourself in this situation might lead you to wonder whether you are allowed to sublease a commercial property without running into legal problems.

Reasons landlords try to stop subleasing

Suppose your business has changed in a way that no longer requires as much space as before. For example, you have downsized and do not require as much space for operations. You might want to sublease unused space to bring costs down. 

You will have to let the landlord know about this change of circumstances, but will they agree to it? If you present your landlord with a candidate who is as financially capable as you are, they may not object to a sublease agreement. However, this is often the point of contention in situations where business owners want to sublet all or part of a property under lease.

The landlord can also turn down your plan to sublease if the sublessee intends to physically alter the premises. If it can be shown that your sublease candidate is, in fact, not able to meet financial requirements or alteration to the property would have a negative impact, the landlord will likely object to and possibly block an agreement. Some landlords will even include a clause in the lease prohibiting you from subleasing the commercial property. 

What can you do?

Even though your landlord can object to a sublease agreement, they may be violating your rights.

If your commercial property landlord is making it difficult for you to sublease, you can always opt for legal guidance to better comprehend the terms of your specific lease and possible solutions.