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Sublease Agreement

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Sublease of Office Space

This Sublease Agreement is made on the (date), between a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Lessee, and a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Sublessee.

Whereas, Lessee has leased space in an office building; and

Whereas, Sublessee desires to obtain office space in the geographical area in which the building is located; and

Whereas, the parties desire to enter a Sublease Agreement defining all rights, duties, and liabilities of the parties;

Now, therefore, for and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Description of Premises

A. Lessee has leased a building consisting of floors and approximately square feet of office space from , Lessor, of .

B. Lessee shall demise to Sublessee the square feet of the building, all located on the floor, as more fully described in Exhibit A, which is attached to and made a part of this Sublease Agreement. Said property to be subleased is hereinafter referred to as the Premises.

2. Purpose of Sublease

A. The Premises demised under this Sublease Agreement are to be used by Sublessee in the conduct of the business of and all tasks related to that business.

B. Sublessee shall not use the Premises for any illegal, immoral, or ultra-hazardous activity, whether within or outside the scope of the business of Sublessee.

3. Term of Sublease

A. The term of this Sublease Agreement shall be for an initial period of years, commencing on and terminating on , unless earlier terminated by breach of the terms and conditions of this Sublease Agreement or as provided in Sections 7 or 16.

B. Lessor concurs that Sublessee may remain in possession of the Premises for the full term of this Sublease Agreement, despite any change that may occur in the status of Lessee or the lease agreement between Lessee and Lessor.

4. Rent

Sublessee shall pay to Lessee as basic rent $ per month, on the day of each month, commencing on , and continuing each subsequent month during the term of this Sublease Agreement. Sublessee shall pay all other sums due as additional rental under the provisions of this Sublease Agreement on the basic rental payment due date first occurring after the additional rental payment arises.

5. Services and Utilities

Lessee shall furnish all water and sewer services to Sublessee at the expense of Lessee. All other utilities required by Sublessee on the Premises, including gas, electricity, and telephone services, shall be obtained by and at the expense of Sublessee. Sublessee shall also obtain and pay the expense of all janitorial services required on the Premises.

6. Accidental Damage or Injury

Lessor and Lessee shall not be liable for any damage to property or any injury to persons, sustained by Sublessee or others, caused by conditions or activities on the Premises. Sublessee shall indemnify Lessor and Lessee against all claims arising from such damages or injuries and shall carry liability insurance insuring Lessee, Sublessee, and Lessor against any claims in amounts to be approved by Lessor.

7. Casualty Damage or Injury

If the Premises shall be destroyed or damaged by any acts of war; the elements, including earthquake; or fire to such an extent as to render the Premises untenantable in whole or in substantial part, Lessor has the option of rebuilding or repairing the Premises by giving notice to that effect to Lessee within days after the occurrence of any damage of the intent of Lessor to rebuild or repair the Premises or the part so damaged. If Lessor elects to rebuild or repair the Premises and does so without unnecessary delay, Sublessee shall be bound by this Sublease Agreement, except that during the period of repair the rent of the Premises shall be abated in the same proportion that the part of the Premises rendered unfit for occupancy by Sublessee shall bear to the whole of the Subleased Premises. If Lessor fails to give notice of the intent to repair, Sublessee shall have the right to declare this Sublease Agreement terminated.

8. Compliance with Original Lease and Laws

A. Sublessee shall not cause or allow any undue waste on the Premises and shall comply with all applicable laws and ordinances respecting the use and occupancy of the Premises relating to matters not covered elsewhere in this Sublease Agreement, provided that Sublessee shall not be required to make any alterations, additions, or improvements to the Premises in order to conform with this Sublease Agreement.

B. Sublessee shall perform and observe the terms and conditions to be performed on the part of Lessee under the provisions of the original lease agreement between Lessee and Lessor, excepting the covenant for the payment of rent reserved by such lease agreement, and to indemnify Lessee against any and all claims, damages, costs, and expenses in respect to the nonperformance or nonobservance of any such terms or conditions.

9. Repairs

Subject to the obligations of Lessor under Section of the original Lease Agreement, Lessee, unless specified to the contrary in this Sublease Agreement, shall maintain the Premises in good repair and tenantable condition during the continuance of this Sublease Agreement, except in case of damage arising from acts or negligence of Sublessee or the agents of Sublessee.

10. Alterations, Additions, or Improvements

A. Sublessee shall not make any alterations, additions, or improvements on or to the Premises without first obtaining the written consent of Lessee. All alterations, additions, and improvements that shall be made shall be at the sole expense of Sublessee and shall become the property of Lessee and shall remain on and be surrendered with the Premises as a part of them, at the termination of this Sublease Agreement without disturbance, molestation, or injury.

B. Nothing contained in this Section shall prevent Sublessee from removing all office machines, equipment, and trade fixtures customarily used in the business of Sublessee.

11. Liens

Sublessee shall keep the Premises free and clear of all liens arising out of any work performed, materials furnished, or obligations incurred by Sublessee.

12. Access to Premises

Sublessee shall allow Lessor or Lessee or the agents or employees of either the free access to the Premises at all reasonable times for the purpose of inspecting or of making repairs, additions, or alterations to the Premises or any property owned by or under the control of either party.

13. Advertisements

All signs or symbols placed in the windows or doors of the demised Premises or on any exterior part of the building by Sublessee shall be subject to the approval of Lessee. If Sublessee shall place signs or symbols on the exterior of the building or in the windows or doors where they are visible from the street that are not satisfactory to Lessee, Lessee may immediately demand the removal of the signs or symbols. The refusal by Sublessee to comply with any demand within a period of hours will constitute a breach of this Sublease Agreement and entitle Lessee immediately to recover possession of the Premises in the manner provided by law. Any signs so placed on the Premises shall be so placed on the understanding and agreement that Sublessee shall remove these signs or symbols at the termination of the tenancy created in and by this Sublease Agreement and repair any damage or injury to the demised Premises caused by the same. If not so removed by Sublessee, then Lessee may have the signs or symbols removed at the expense of Sublessee.

14. Sales, Assignments, and Subleases

A. Sublessee shall not assign this Sublease Agreement or sell or sublet the subleased Premises, or any part of or interest in them, without the prior, express, and written consent of Lessee.

B. This Sublease shall not be assigned by operation of law.

C. If consent is once given by Lessee to the assignment of this Sublease Agreement or Sublease of the Premises or any interest in this Sublease Agreement, Lessee shall not be barred from subsequently refusing to consent to any further assignment or sublease.

D. Any attempt to sell, assign, or sublet without the consent of Lessee shall be deemed a default by Sublessee, entitling Lessee to reenter pursuant to Section 19 if Lessee so elects.

15. Quiet Enjoyment

If Sublessee performs the terms of this Sublease Agreement, Lessee will warrant and defend Sublessee in the enjoyment and peaceful possession of the Premises during the term of this Sublease Agreement without any interruption by Lessee or Lessor or either of them or any person rightfully claiming under either of them.

16. Condemnation

A. If the Premises or any part of the Premises are appropriated or taken for any public use by virtue of eminent domain or condemnation proceedings or if by reason of law, ordinance, or court decree, whether by consent or otherwise, the use of the Premises by Sublessee for any of the specific purposes referred to in this Sublease Agreement shall be prohibited, Sublessee shall have the right to terminate this Sublease on written notice to Lessee, and rental shall be paid only to the time when Sublessee surrenders possession of the Premises.

B. In the event of partial appropriation, Sublessee may elect to continue in possession of that part of the Premises not so appropriated under the same terms and conditions of this Sublease Agreement, except that in those cases Sublessee shall be entitled to an equitable reduction of the rental payment under this Sublease Agreement.

C. Any rental paid in advance beyond the time that the property has been taken from Sublessee shall be returned by Lessee to Sublessee on demand.

D. Sublessee does not waive any right to recover from the condemnation authority for any damage that may be suffered by Sublessee by reason of any condemnation.

17. Option to Renew

Subject to the receipt by Lessee of an extension of the original lease agreement for a sufficient duration to include this renewal, at any time before the commencement of the last calendar month of the first term of this Sublease Agreement, Sublessee is granted the option and privilege of extending and renewing the term of this Sublease Agreement for an additional -year period at an annual rental to be agreed on or arbitrated as provided in this Sublease Agreement.

18. Default by Lessor or Lessee

If Lessor or Lessee fails or neglects to perform under the provisions of this Sublease Agreement or of the original lease between them, then Sublessee may, after reasonable notice in writing of not less than days, terminate this Sublease Agreement.

19. Default of Sublessee

A. If any rents reserved, or any part of them, shall be and remain unpaid when they shall become due or if Sublessee violates or defaults in any of the provisions of this Sublease Agreement, then Lessee may cancel this Sublease Agreement by giving the required notice and reenter the Premises.

B. In spite of any reentry, the liability of Sublessee for the rent shall not be extinguished for the balance of the term of this Sublease Agreement, and Sublessee shall make good to Lessee any deficiency arising from a reentry and reletting of the demised Premises at a reduced rental.

C. Sublessee shall pay any deficiency on the first day of each month immediately following the month in which the amount of deficiency is ascertained by Lessee.

20. Insolvency or Bankruptcy

If Sublessee becomes insolvent, voluntarily or involuntarily bankrupt, or if a receiver, assignee, or other liquidating officer is appointed for the business of Sublessee, then Lessee may terminate this Sublease Agreement at the option of Lessee.

21. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

22. Termination and Surrender

A. Sublessee shall surrender the Premises within days from receipt of notice of termination of this Sublease Agreement or on the last day of the term of this Sublease Agreement.

B. Lessee shall have the right to place and maintain on the Premises "For Rent" or "For Sale" signs during the last days of the term of this Sublease Agreement.

C. Sublessee shall, at the expiration of this Sublease Agreement, surrender the keys to the Premises to Lessee.

D. If Sublessee shall surrender the Premises at the election of Sublessee, the liability for all duties and obligations required of Sublessee shall continue until the surrender has been accepted by Lessee in writing.

23. Removal of Personal Property

A. Sublessee shall have the right to remove all personal property, trade fixtures, and office equipment, whether attached to the Premises or not, provided that these items can be removed without serious damage to the building or the Premises.

B. All holes or damages to the building or the Premises caused by removal of any items shall be restored or repaired by Sublessee promptly.

C. Sublessee shall be entitled to remove any electrical service connections installed by Sublessee that were designed specifically for Sublessee.

D. If Lessee or Lessor reenters or retakes possession of the Premises prior to the normal expiration of this Sublease Agreement, Lessee or Lessor shall have the right, but not the obligation, to remove from the Premises all personal property located on the Premises belonging to Sublessee. Either party may place the property in storage in a public warehouse at the expense and risk of Sublessee.

24. Holding Over

A. Any holding over at the expiration of this Sublease Agreement with the consent of Lessee shall be on a month-to-month basis, which tenancy may be terminated as provided by the laws of .

B. During any holdover tenancy, Sublessee shall pay the same rate of rental on a monthly basis as is in effect at the time of the termination of this Sublease Agreement and shall be bound by all the terms and conditions of this Sublease Agreement.

25. Acknowledgment by Lessor

This Sublease Agreement is made with the full knowledge and agreement of lessor of the Premises and Lessor accepts this Sublease Agreement but retains all rights to disapprove any future Sublease between Lessee and Sublessee or between Lessee and any other party.

26. Severability

The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

27. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

28. Notices

Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

29. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

30. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

31. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

32. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

33. In this contract, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine.

WITNESS our signatures as of the day and date first above stated.

By:

By:

Consent/Approval of Lessor:

Additional Notes:

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What a Sublease Agreement Is and When It Applies

A Sublease Agreement is a written contract in which an existing tenant (the sublessor) grants all or part of their leased premises to another party (the sublessee) for a defined term while the original lease remains in effect. It allocates rights and obligations between sublessor and sublessee, clarifies rent and utilities, addresses maintenance, and typically requires landlord consent when the master lease prohibits assignment or subletting. Well-drafted subleases reduce ambiguity about liability, preserve the master lease relationship, and document conditions for termination, renewal, and security deposits to avoid disputes.

Why Use a Sublease Agreement

A clear sublease protects all parties: it defines who pays rent and maintains the property, allocates legal risk tied to the master lease, and documents landlord consent and remedies. This reduces eviction risk and clarifies responsibilities during the sublease term under ESIGN and UETA for electronic records.

Why Use a Sublease Agreement

Who Typically Prepares and Signs a Sublease

Typical users include tenants seeking to transfer occupancy rights, property managers facilitating sublets, and brokers arranging interim occupancy.

  • Tenants who need to vacate temporarily or reduce space and want to preserve the original lease
  • Property managers and landlords who must track permission, compliance, and payments
  • Commercial brokers and leasing agents who prepare terms and screen potential subtenants

Each participant has distinct responsibilities: tenants manage landlord relations, managers enforce lease terms, and brokers document transaction details.

Core Clauses Every Professional Sublease Should Include

A professional sublease should clearly allocate rights and responsibilities, link to the master lease, and include remedies so parties and courts can enforce terms without ambiguity.

Landlord Consent

State whether landlord approval is required and attach written consent to avoid default under the master lease; describe approval timing and form.

Premises Description

Identify the exact space being sublet by street address, suite number, and square footage or a precise description to avoid boundary disputes.

Term and Renewal

Specify start and end dates and any renewal or holdover terms that must align with the master lease to avoid overlapping obligations.

Rent and Payment

State the rent amount, due date, payment method, late fees, and who pays utilities or common area charges during the sublease term.

Maintenance

Allocate routine maintenance and repair responsibilities, and state whether alterations require landlord consent or restoration at exit.

Default Remedies

Provide cure periods, late fee schedule, and indemnity provisions clarifying liability for breaches and third-party claims tied to the master lease.

Essential Information to Collect in the Sublease

Sublessor Name: Full legal name
Sublessee Name: Full legal name or entity
Premises Address: Street, suite, city, state, ZIP
Term Dates: MM/DD/YYYY start and end
Rent Details: Amount, due date, payment method
Signatures: Signed and dated by all parties

Key Risks and Potential Consequences

Lease Violation: Master lease default
Eviction Risk: Sublessee removal exposure
Financial Liability: Tenant remains liable
Security Deposit Disputes: Claims over deductions
Unenforceable Terms: Void provisions risk
Tax Consequences: Reporting or withholding issues

Common Drafting and Execution Mistakes to Avoid

  • Signing a sublease without first obtaining written landlord consent, which can trigger master lease default and eviction proceedings if prohibited.
  • Vague premises descriptions that fail to define the portion of space sublet, causing disputes over access, utilities, and liability.
  • Mismatch between sublease term and master lease remaining term, creating premature termination or holdover conflicts at the master lease's end.
  • Failing to address responsibility for repairs, alterations, and insurance, which leads to unexpected bills and coverage gaps.

How to Complete a Sublease Agreement — Step by Step

Follow these core steps to prepare, approve, and execute a clear sublease that aligns with the master lease and protects parties.

  • 01
    Prepare draft: Assemble master lease, proposed terms, and identity documents.
  • 02
    Check permission: Obtain written landlord consent per master lease requirements.
  • 03
    Negotiate terms: Agree rent, term, utilities, and liability allocation.
  • 04
    Execute: Sign, notarize if required, and exchange fully executed copies.

Where to Send the Fully Executed Sublease

Routing depends on parties and landlord requirements; follow the master lease instructions for delivery and retention of executed documents.

  • Landlord: Send executed copy to landlord or property manager for their records.
  • Sublessor: Retain original signed file and proof of delivery.
  • Sublessee: Provide signed copy and payment receipts to sublessee.
  • Legal Counsel: Deliver copy to counsel when review or enforcement may be needed.

How to Configure an Online Sublease Workflow

Set up fields, signer order, and authentication to match your approval process before sending for signatures.

Field Action
Signature Blocks Place signature and date fields for each signer
Signer Order Set sublessor, sublessee, then landlord
Authentication Use email or SMS code for identity verification
Storage Enable PDF export with audit trail

Signing Platforms and Technical Considerations

Digital signing simplifies execution but requires compatible file formats and signer authentication options.

  • eSignature Format: PDF or DOCX accepted
  • Authenticator: Email, SMS, or stronger options
  • Integrations: Connects to cloud storage and ERP

Choose a platform that supports audit trails, secure storage, and the authentication level required by the parties and applicable law.

Key Dates and Notice Deadlines to Track

Monitor dates tied to payments, consent deadlines, and termination notices to maintain compliance and avoid disputes.

Effective Date:

Document start date in MM/DD/YYYY format.

Rent Due Date:

Specify monthly due date and grace period if any.

Landlord Consent Deadline:

Set a clear deadline to obtain written landlord approval.

Termination Notice:

State required notice period for early termination.

Recordation Window:

If local law requires, note recording timeframe.

Milestone Timeline for a Typical Sublease

Sequence major milestones so parties know when approvals, payments, and handover should occur during the sublease lifecycle.

01

Negotiate Terms

Agree rent, term, utilities, and any deposits.

02

Obtain Consent

Secure landlord written consent before execution.

03

Execute Documents

All parties sign and exchange fully executed copies.

04

Handover

Sublessee takes possession and begins payments.

Real-World Examples of Sublease Use

These brief examples show how organizations document and execute subleases to maintain compliance and operational continuity.

Martin Properties — Commercial Sublease

A local property manager needed remote execution for multiple subleases

  • Used mobile and offline signing options to close faster
  • I can process and execute all of these documents online with 100% compliance and built-in security, whether on mobile or offline, which sped up turnovers and reduced in-person meetings.

Optica Ventures — Office Short-Term Sublet

A tenant sought a short-term subtenant during renovation

  • Required landlord estoppel and explicit utility allocation
  • The interface was simple for internal teams and customers, enabling quick execution while preserving the master lease obligations.

eSignature Vendor Comparison for Sublease Execution

Compare common eSignature providers by pricing and features relevant to signing and storing a Sublease Agreement; signNow is listed first per comparison format.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no credit card Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently Asked Questions About Sublease Agreements

Answers to common questions about drafting, signing, and enforcing a sublease to help reduce errors and disputes.


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