Skip to content
English
Contact us
  • There are no suggestions because the search field is empty.

Assigning a Commercial Lease

How to transfer an entire lease to a new tenant — and stay protected doing it.

What does it mean to assign a commercial lease?

Assigning a commercial lease means transferring the tenant's entire interest in the lease to a new tenant, who steps into the original tenant's shoes for the rest of the term. Assignment is common when a business is sold, merges, or exits a location entirely.

Assignment vs. sublease

An assignment transfers the whole lease; a sublease transfers only part of the term or space and leaves the original lease in place. The distinction matters most for liability: after an assignment, the original tenant is often still liable to the landlord unless the lease — or a separate release — expressly says otherwise. That continuing liability is why a departing tenant should insist on a written release as a condition of the assignment.

Landlord consent and conditions

Nearly every commercial lease requires the landlord's consent to an assignment. Landlords frequently condition consent on the new tenant's financial strength, a matching use, an updated guaranty, and sometimes a share of any increased rent. A landlord may also request an estoppel certificate confirming the lease status as part of the transfer.

Protecting yourself in an assignment

The outgoing tenant should push for a full release; the incoming tenant should confirm exactly what obligations it is inheriting; and the landlord should verify the assignee can perform. Getting these documented — not assumed — is what prevents a dispute later.

How Nochumson P.C. helps

Nochumson P.C. handles lease assignments as part of commercial real estate and business-sale transactions for landlords, tenants, and buyers. Contact us to assign or accept a lease correctly.

Related articles:

Learn more from Nochumson P.C.: