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Sublease
An arrangement where an existing tenant re-rents all or a portion of their leased premises to a third party while retaining primary lease liability.
A Sublease is an arrangement wherein an existing commercial or residential tenant (the sublessor) leases all or part of their rented premises to a third party (the sublessee) for a designated period within their remaining lease term.
The original tenant remains strictly liable to the property owner for all rent payments, insurance requirements, and property maintenance covenants.
More in Leasing
See all Leasing terms →Assignment of Lease
The complete legal transfer of an existing tenant's entire leasehold rights, obligations, and physical occupancy to a new incoming tenant.
Read definition →Base Rent
The fixed minimum monthly rent agreed upon in a lease agreement, excluding utilities, janitorial, or shared operating expense pass-throughs.
Read definition →Co-Tenancy Clause
A commercial lease clause granting rent reductions or termination rights if anchor tenants vacate or center occupancy falls below agreed levels.
Read definition →Continuous Operation Covenant
A commercial lease requirement obligating a retail tenant to keep its store open, fully stocked, and staffed during designated business hours.
Read definition →Escalation Clause
A commercial lease provision specifying annual rent increases tied to a fixed percentage, stepped rates, or the Consumer Price Index (CPI).
Read definition →