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Commercial Sublease Agreement Template

Used 4,901 times

To sublease your commercial property to a third party, use this template for a commercial sublease agreement. Although this agreement is intended for subleasing a building or shop space, it can be changed to accommodate various circumstances.

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  1. Templates
  2. Agreements
  3. Commercial Sublease Agreement Template

Commercial Sublease Agreement Template

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Created by:



Prepared for:




Sublessee: [Sublessee.FirstName][Sublessee.LastName]

Address of the Property: (Property.Street) (Property.City) (Property.State) (Property.ZipCode)

Property Description and Term

This Commercial Sublease Agreement ("Agreement") is entered into on (Effective Date) by and between [Sublessor.FirstName][Sublessor.LastName] ("Sublessor") and [Sublessee.FirstName][Sublessee.LastName] ("Sublessee"), collectively referred to as the 'Parties,' with reference to the following premises located at (Premises Address), hereinafter referred to as the 'Premises.’

Use of Premises

The Sublessee shall use the premises exclusively for (Permitted Use) and for no other purpose without the prior written consent of the Sublessor.


The term of this Sublease shall commence on (Commencement Date) and shall continue until (Termination Date) unless terminated earlier in accordance with the provisions of this agreement.

Rent and Payment Terms

Rent Amount

The Sublessee shall pay the Sublessor a monthly rent amount of (Insert Rent Amount). All rent payments shall be made in US dollars and are due on the (Insert Date).

Payment Schedule

The rent for the first month of this sublease agreement shall be paid upon the execution of this Agreement. Subsequent monthly rent payments shall be due on the (Insert Date) during the term of this sublease agreement.

In the event that the Sublessee fails to make a rent payment within (Insert Number of Days) days of the due date, a late fee of $(Insert Late Fee Amount) shall be imposed for each day the payment remains overdue.

The Sublessee shall make all rent payments via (Insert Accepted Payment Method), and payments shall be made to the following address: (Insert Payment Address).

Security Deposit

The Sublessee shall provide a security deposit in the amount of (Insert Security Deposit Amount) as security for the performance of all obligations under this sublease agreement.

The Sublessor shall retain the security deposit for the entire term of this agreement and shall be returned to the Sublessee, less any lawful deductions, within (Insert Number of Days) days after the termination of this sublease agreement.

Utilities and Additional Charges

The Sublessee shall be responsible for the payment of all utilities and services consumed during the term of this Sublease, including but not limited to water, electricity, gas, and internet services.

Rent Adjustment

The rent may be increased during the term of this sublease agreement only in accordance with the terms and conditions set forth in the Master Lease Agreement between the Sublessor and the Master Lessor.

In the event of a rent increase under the Master Lease Agreement, the Sublessee shall be responsible for the increased portion of the rent as outlined in the Master Lease Agreement.

Use and Condition of the Premises

Permitted Use

The Sublessee shall use the subleased premises exclusively for the purpose of (Specify the specific purposes of use). Any use of the premises beyond the scope of this permitted use shall require the prior written consent of the Sublessor.

Alterations and Improvements

The Sublessee shall not make any alterations or improvements to the subleased premises, whether structural or non-structural, without obtaining the prior written consent of the Sublessor. Any permitted alterations or improvements shall be conducted in accordance with applicable laws, regulations, and permits.

Maintenance and Repairs

The Sublessee shall maintain the subleased premises in good and safe condition throughout the term of this sublease. This includes, but is not limited to, keeping the premises clean, sanitary, and free from damage or waste.

The Sublessor shall be responsible for maintenance and repairs to the structural components of the premises, such as the roof, foundation, and structural walls, unless such maintenance and repairs are necessitated by the negligence or actions of the Sublessee, in which case the Sublessee shall bear the cost of such maintenance and repairs.

The Sublessee shall be responsible for routine maintenance and repairs, including but not limited to interior fixtures, electrical systems, plumbing, heating, and air conditioning systems, and any damage or deterioration resulting from its use on the premises.

Condition at the End of the Term

Upon the termination of this agreement, whether by expiration, early termination, or otherwise, the Sublessee shall surrender the subleased premises to the Sublessor in the same condition as received at the commencement of the sublease, ordinary wear and tear excepted.

The Sublessee shall remove all of its property and belongings from the premises, and any damage or alterations made by the Sublessee without proper consent shall be restored to their original condition at the Sublessee's expense.

Insurance and Liability

Insurance Requirements

The Sublessee shall, at its own expense, maintain the following insurance policies throughout the term of this agreement:

The Sublessee shall maintain a commercial general liability insurance policy with coverage limits of not less than (Specify Coverage Limits) per occurrence and (Specify Aggregate Limit) in the aggregate. This insurance policy shall name the Sublessor as an additional insured and provide for a waiver of subrogation in favor of the Sublessor

The Sublessee shall maintain property insurance covering all of its personal property and improvements made to the subleased premises with coverage limits sufficient to replace such property in the event of loss or damage, with such insurance policy naming the Sublessor as a loss payee.

The Sublessor reserves the right to require the Sublessee to maintain any additional insurance policies as may be reasonably necessary, and the Sublessor shall provide written notice of such requirements to the Sublessee


The Sublessee shall indemnify, defend, and hold the Sublessor, its officers, agents, and employees harmless from and against any and all claims, demands, liabilities, losses, damages, costs, and expenses, including but not limited to reasonable attorney's fees, arising out of or in connection with:

Any injury to persons or damage to property occurring within the subleased premises, regardless of fault or negligence, except to the extent that such claims result from the Sublessor's gross negligence or willful misconduct.

The Sublessee use and occupancy of the subleased premises, including any activities conducted by the Sublessee or its employees, agents, or invitees on the subleased premises.

The sublesse’s obligations under this indemnification provision shall survive the termination or expiration of this sublease agreement.

Governing Law

This sublease agreement shall be governed by and construed in accordance with the laws of the [Sublessor.State], and any legal action or proceedings arising out of or in connection with this agreement shall be instituted in the state or federal courts located within the jurisdiction of the aforementioned state.


This sublease agreement may only be amended in writing and signed by both parties. No oral modification of this agreement shall be binding.







Commercial Sublease Agreement Template

Used 4,901 times

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