Subleasing is a common solution for tenants facing business or personal changes. It’s essential for tenants to understand their subleasing rights and responsibilities, as outlined in their lease agreement. Proper management of sublease arrangements can provide flexibility and financial relief during times of transition.

While this is certainly not an ideal situation, it ultimately can be beneficial for a landlord to have a new business occupy the space. The benefit to a landlord of a sublease is that the new occupier of the lease is ultimately more likely to stay in the space after the initial term of the lease expires. During the remainder of the lease term, a sublease allows for both the original tenant and the subtenant to have a financial responsibility for the lease. It is a right and responsibility of the landlord to understand the financial capabilities of the subtenant.

This could be an opportunity for a landlord to make the best of a bad situation. The expense of a sublease, as it relates to any commissions, or rent concessions during the remainder of the initial tenant’s term, are the responsibility of the original tenant.