Subleasing and assignments are essential instruments for tenants to reduce the size and cost of their space as their needs change. Landlords (and their lenders) often disfavor subleases and assignments because they might lose control of who occupies the space. Subleases come in a variety of forms, all of which need to conform to the provisions of the master lease. Because of this, subleases can quickly become wildly complex, and have the potential to give rise to multiple levels of friction and possibly litigation. This program will provide you with a practical guide to the types of subleases and assignments, key issues for landlords, tenants, and subtenants, and drafting tips
- Subleasing v. assignments – when is each used or allowed?
- Types of subleases – no reference to master leases, reference by incorporation, custom subleases
- Standards of “reasonableness” in obtaining landlord consent to assignment or sublease
- Identifying and mitigating risks to tenants and subtenants in subleasing
- Landlord and lender concerns in subleases and methods to address
- Space recapture, profit sharing, and other landlord remedies
- Restrictions on use in subleases and subtenant risks
- Non-disturbance agreements with landlord and lender
- Subtenant remedies when tenant defaults on master lease
- Most important provisions of lease assignments
Note: This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for ethics, elimination of bias or Kansas credit.