Sublease Agreement
(Commercial) (MI)

Summary

This template of a sublease agreement may be used when a tenant or sublandlord in Michigan wishes to lease all or a portion of its leased premises for a period of time less than the remaining term. This template includes practical guidance, drafting notes, and alternate and optional clauses. This template may be tailored to suit each transaction. This template incorporates Michigan law. Unlike the direct lease (principal lease) between a tenant and a landlord (principal landlord), with a sublease there is no privity between the subtenant and the principal landlord. The sublease typically incorporates by reference (or excludes) many of the terms and conditions of the principal lease so that (i) repetition is unnecessary and (ii) the potential for inconsistencies is diminished. Depending on the amount of modifications or new sublease-specific terms the sublandlord requires, subleases can be brief or extensive. Once the sublease is executed, but prior to its effectiveness, the principal landlord's consent is typically required pursuant to the terms of the principal lease. If the tenant is assigning all of its rights and obligations under the lease for the remainder of the lease term, use an assignment and assumption of lease agreement, rather than a sublease agreement. For a full list of key content regarding sublease agreements, see Subleasing Resource Kit. For more on sublease agreements, see Sublease Agreements and Sublease Due Diligence. For common commercial consent to sublease templates, see Landlord Consent to Sublease, Consent to Sublease (Office Lease) (Short Form), and Consent to Sublease (Retail Lease) (Short Form). For a Michigan assignment and assumption of lease agreement, see Assignment and Assumption of Lease Agreement (Commercial Lease) (MI). For further guidance on commercial leasing in Michigan, see Assignment and Assumption of Lease Agreement (Commercial Lease) (MI). For templates of commercial leases for use in Michigan, see Retail Lease Agreement (Long Form) (MI), Retail Lease Agreement (Short Form) (Pro-Landlord) (MI), Office Lease Agreement (Long Form) (MI), and Office Lease Agreement (Short Form) (MI).