Commercial Gross Lease Sublease
Agreement
This attorney drafted Commercial Gross Lease Sublease
Agreement sets forth numerous standard provisions for the
sublease of a portion of a leased commercial premises, as well as
the opportunity for customization based on the parties
preferences and negotiations. This form sets forth subtenants
particular obligations to Tenant, while also maintaining
obligations set forth under the original lease. This form should
be utilized by landlords, tenants, managing agents and their
respective attorneys.
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EXPRESS, IMPLIED, OR OTHERWISE, INCLUDING AS TO THEIR LEGAL EFFECT AND
COMPLETENESS. They are for guidance and should be modified to meet your needs and the
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modifying any form is not creating or entering into an Attorney-Client relationship. Docstoc
does not provide legal advice. The information and forms are not a substitute for the advice of
your own attorney.
Commercial Gross Lease Sublease Agreement
This commercial sublease agreement is entered into as of this ___ day of ___, 20__ [Instruction:
Insert date.] by and between _____, [Instruction: Insert Tenant’s name.] as tenant under a
lease with landlord (“Tenant”) and ____ [Instruction: Insert Subtenant’s name.] as subtenant
(“Subtenant”) (the “Sublease”).
WHEREAS, Tenant, entered into a lease with ____, [Instruction: Insert Landlord’s name.] as
landlord (“Landlord”) dated as of ____, [Instruction: Insert original lease date.] for the
premises located at _____ [Instruction: Insert property address and suite number, if any, of
leased premises.]and consisting of _____ [Instruction: Insert description of leased premises,
including size of premises.] (the “Lease); and
WHEREAS, such Lease permits the subleasing of all or a portion of the leased premises; and
WHEREAS, Tenant covenants it is not in default of any of the provisions of the Lease, including
obtaining any necessary consent from Landlord to enter into this Sublease; and
WHEREAS, Subtenant wishes to sublease a portion of the leased premises consisting of _____,
[Instruction: Insert description of premises to be subleased, including size of subleased
premises.] such Sublease to commence on _____ [Instruction: Insert sublease commencement
date.] and terminate on _____. [Instruction: Insert sublease termination date.]
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, and in consideration of the mutual covenants set forth herein the parties
hereto agree as follows:
1. Subtenant shall submit $____ [Instruction: Insert security deposit amount.] to Tenant
as a security deposit, which shall be held by Tenant in accordance with applicable state
law, and if no such law exists, shall be held by Tenant pursuant to the same provisions by
which Landlord holds Tenant’s security deposit [Comment: Parties may revise the
method of holding the security deposit. If Tenant has not deposited a security
deposit with Landlord, delete inapplicable language and set forth manner in which
Tenant will hold Subtenant’s security deposit.]. The security deposit shall not be
considered rent;
2. Such security deposit shall be returned to Subtenant, without interest, and less any set off
for damages to the premises upon the termination of this agreement. The security deposit
will be applied first to any non-rent items, including late charges, returned check charges,
repairs, brokerage fees, and periodic utilities, then to any unpaid rent. In the event that
Tenant shall at any time apply any of such security deposit to cover unpaid rent, the late
fee, or to repair damage caused to the premises, then, upon the request of Tenant to
Subtenant specifying the amount so applied, Subtenant shall immediately deposit with
Tenant, as an additional security deposit, the amount so applied, so that the security
deposit held by Tenant shall at all times during the term hereof be equal to the
aforementioned amount specified in this section. If deductions exceed the security
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deposit, Subtenant will pay to Tenant the excess within ten (10) days after Tenant makes
written demand;
3. Subtenant will pay rent in equal monthly installments in the amount of $__________
[Instruction: Insert monthly rental amount.] per month in advance for the term of this
Sublease. Due date for rent payment shall be the 1st day of each calendar month and
shall be considered advance payment for that month. If not remitted on the 1st, rent shall
be considered overdue and delinquent on the 2nd day of each calendar month. In the
event that the commencement date is not the 1st of the calendar month, rent payment
remitted on the commencement date shall be prorated based on a 30-day period. In case
of rent increment under the Lease, the Subtenant will be notified as set forth herein;
4. Acceptable forms of payment of rent to Tenant shall be by Subtenant’s good check,
subject to collection or official check issued by any bank, savings bank, trust company or
savings and loan association, unendorsed and payable to Tenant at the following address:
_______. [Instruction: Insert Tenant’s address for payment.];
5. In the event that any payment required to be paid by Subtenant hereunder is not made in
full within three (3) days of when due, subtenant shall pay to Tenant, in addition to such
payment or other charges due hereunder, a "late fee" in the amount of Twenty-Five
United States Dollars ($25.00) per day until rent is paid in full. If rent is paid by the 3rd
day of the month for the month in which it is due, Tenant will waive the late fee for that
month. Any waiver of late fees under this paragraph will not affect or diminish any
other right or remedy Tenant may exercise for Subtenant’s failure to timely pay rent.
Further, any waiver of late fees under this paragraph shall not constitute a waiver of any
future or past late charge.
6. In the event that any payment by Subtenant is returned for insufficient funds ("NSF") or
if Subtenant stops payment, Subtenant will pay $35 to Tenant for each such check, plus
late fees as described herein until Tenant has received payment in full. Further, Tenant
may require in writing that Subtenant pay rent in cash for three months, and that all future
rent payments shall be remitted by subtenant to Tenant by money order or cashier's
check. Tenant will apply all funds received from Subtenant first to any non-rent
obligations of Subtenant including late charges, returned check charges, charge-backs for
repairs, brokerage fees, then to rent, regardless of any notations on a check;
7. In addition to rent, Subtenant will pay all utilities (and taxes) when due, based upon its
prorata percentage share of the total leased premises. [Instruction: Parties may revise
this provision to divide up the utilities based upon their negotiation. If taxes are not
to be paid by Subtenant, delete reference to same.]
8. Subtenant shall pay any other additional rent amounts due as set forth in the Lease, based
upon it’s prorate percentage share of the total leased premises. Notwithstanding the
foregoing, Subtenant shall not be liable for payment of any fees based upon Tenant’s
failure to pay rent when due, or for any NSF check or stopped payment fee of Tenant’s.
9. Upon the termination date, Subtenant shall be required to vacate the premises unless one
of the following circumstances occur: (i) Tenant and Subtenant formally extend this
agreement in writing or create and execute a new, written, and signed agreement or (ii)
Tenant willingly accepts new rent from Subtenant, which does not constitute past due
rent. In the event that Tenant accepts new rent from Subtenant, a month-to-month
tenancy shall be created. Either party may terminate this month-to-month tenancy by
written thirty (30) day notice. Rent shall continue at the rate specified in this agreement,
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or as allowed by law, unless otherwise agreed to in writing by the parties. All other terms
and conditions as outlined in this agreement shall remain in full force and effect.
10. This Sublease is subject to all present or future mortgages affecting the premises.
11. Subtenant shall use and occupy the premises only as a _________________________
[Instruction: Insert permitted uses.] subject at all times to the approval of the Landlord
and Tenant, and in all events, subject to the terms of the Lease.
12. Subtenant hereby acknowledges receipt of a copy of the Lease and agrees to be bound by
all of the terms and provisions contained therein s if same were fully set forth herein,
except with respect to rent, which shall be payable as set forth in this Sublease.
13. Subtenant shall have no right to further assign or sublease the premises, without the prior
written consent of Tenant, and Landlord, where such consent of Landlord is required.
14. Subtenant represents that Subtenant was not shown the premises by any real estate broker
or agent and that Subtenant has not otherwise engaged in, any activity which could form
the basis for a claim for real estate commission, brokerage fee, finder's fee or other
similar charge, in connection with this Sublease.
15. Should it become necessary for Tenant to employ an attorney to enforce any of the
conditions or covenants hereof, including the collection of rentals or gaining possession
of the premises, Subtenant agrees to pay all expenses so incurred, including a reasonable
attorneys' fee. Subtenant hereby understand and agree specifically that such attorney may
be Tenant, and in such instance, Subtenants would remain responsible for all expenses so
incurred, including such reasonable attorneys’ fee as Tenant would normally charge in
such matters.
16. This Agreement shall be governed, construed and interpreted by, through and under the
Laws of the State of _____. [Instruction: Insert state.]
17. If any provision of this Sublease or the application thereof shall, for any reason and to
any extent, be invalid or unenforceable, neither the remainder of this Sublease nor the
application of the provision to other persons, entities or circumstances shall be affected
thereby, but instead shall be enforced to the maximum extent permitted by law.
18. The covenants, obligations and conditions herein contained shall be binding on and inure
to the benefit of the heirs, legal representatives, and assigns of the parties hereto.
19. The pronouns used herein shall include, where appropriate, either gender or both,
singular and plural.
20. No indulgence, waiver, election or non-election by Landlord under the Lease or by
Tenant under this Sublease shall affect Subtenant's duties and liabilities hereunder.
21. The parties hereby agree that this document contains the entire agreement between the
parties and this Agreement shall not be modified, changed, altered or amended in any
way except through a written amendment signed by all of the parties hereto.
22. Any notice required or permitted under this Sublease or under state law shall be deemed
sufficiently given or served if sent by United States certified mail, return receipt
requested and directed to the party at the address first set forth above. Tenant and
Subtenant shall each have the right from time to time to change the place notice is to be
given under this paragraph by written notice thereof to the other party.
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Signature of Subtenant: Signature of Sub leaseholder:
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