Subleasing Commercial Space in Pennsylvania

What is a commercial sublease?

A commercial sublease is an arrangement in which the existing tenant (the sublandlord) rents all or part of its leased space to another business (the subtenant), while the original tenant remains bound to the landlord under the main lease. The subtenant's rights flow through — and cannot exceed — the original lease.

Sublease vs. assignment

In a sublease, the original tenant keeps its lease and stays on the hook to the landlord. In an assignment, the tenant transfers the entire lease to a new tenant. The key practical difference is ongoing liability: a subtenant's default is still the original tenant's problem. The original tenant generally stays responsible to the landlord for the rent and every other lease obligation unless the landlord signs a written release.

Does the landlord have to consent?

Most commercial leases prohibit subleasing without the landlord's consent. Whether the landlord can refuse for any reason, or only for a commercially reasonable one, depends on the lease language — a "consent not to be unreasonably withheld" standard is something the tenant negotiates into the lease, not something that applies automatically. If your lease is silent on the point, how much discretion the landlord has is a question worth reviewing for that specific lease.

What a sublease should address

Landlord consent and any recapture or profit-sharing rights;
Use — the subtenant's use must fit the main lease and zoning;
Rent flow, security, and default between sublandlord and subtenant;
Condition and surrender of the space at the end of the term.

How Nochumson P.C. helps

Nochumson P.C. drafts and reviews commercial subleases for tenants looking to offload space and for landlords protecting their buildings. Contact us to handle your sublease the right way.

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