Industrial/Warehouse Sublease (Pro-Sublandlord Short Form)

by Practical Law Real Estate

A sublease agreement for industrial warehouse space, favoring the sublandlord and detailing essential drafting and negotiating tips for both sublandlords and subtenants. Key elements include the definition of the subleased premises, the term of the sublease, and the payment structure for base and additional rent. The document emphasizes the importance of obtaining prime landlord consent and addresses the subordination of the sublease to the primary lease. It incorporates the primary lease by reference, with specific exclusions and modifications to suit the sublease transaction. The sublease agreement stipulates the permitted use of the premises and the conditions under which the subtenant may occupy the space, including the "as-is" condition clause. It also covers the subtenant's obligations for maintenance and repair, security deposit requirements, and the indemnity provisions protecting the sublandlord. The document includes guidance on handling subtenant defaults, late charges, and interest on overdue payments, along with the necessary consents and approvals. While subleases are generally governed by state law, this jurisdictionally neutral template is useful and relevant in every state.