Assignment and Subletting Clause
(Commercial Lease) (Pro-Landlord)

Summary

This template for an assignment and subletting clause is for use in a commercial office, retail or industrial building lease. This clause prohibits the tenant from assigning or subletting all or any portion of its space without the consent of the landlord, which can be withheld by the landlord for any or no reason. This template includes practical guidance, alternate provisions favoring the tenant and reasonably balanced between the landlord and the tenant, respectively, and drafting notes. In this template, indirect transfers of ownership or economic interests in the tenant are considered the equivalent of a prohibited assignment. An exception is provided for transfers of securities of a public company. The capitalized terms and section references used in this template should be conformed to the relevant lease agreement. For a full listing of key content covering retail leasing, see Retail Leasing Resource Kit. For a full listing of key content covering real estate transactions for in-house attorneys, see In-House Real Estate Resource Kit For more information on negotiating an assignment and sublease provision in an office lease, see Closing an Office Lease Transaction. For more information on negotiating an assignment and sublease provision in a retail lease, see Closing a Retail Lease Transaction. For more information on negotiating an assignment and sublease provision in an industrial lease, see Closing an Industrial Lease Transaction. For an example of an assignment and subletting clause in the context of a complete, annotated commercial office lease, see Office Lease Agreement. For an example of an assignment and subletting clause in the context of a complete, annotated retail lease, see Retail Lease Agreement (Long Form). For an example of an assignment and subletting clause in the context of a complete, annotated industrial lease, see Commercial and Industrial Lease.