Almost all preprinted commercial real estate lease forms in the state of California provide the tenant the ability to sublease the premises with the landlord’s prior written consent. The landlord cannot unreasonably withhold the consent to sublease. However, there are legitimate reasons to withhold consent for example change of use of the premises, financial ability and the tenant’s prior experience in the stated business.
A recommendation for the tenant is to have a meeting with the landlord to notify them of the intention to sublease the property. The landlord may be able to work with the tenant in releasing them from the lease early. Listed below are 3 reasons to meet the landlord:
1. The landlord may have a replacement tenant for the premises.
The list below should be considered by the tenant if the landlord does not oppose subleasing the premises:
1. The tenant should not ask more than the current rate he is paying to the Landlord. The lease obligation is a liability for the tenant. It may take far longer to sublease at a higher rate which could be a costly mistake. In addition, the rents should be offered at a discount rate from the current rate if the lease time is 3 years or less.
The recommendations mentioned above should provide a roadmap for success in subleasing commercial real estate property.