Negotiating and Drafting Commercial Lease Assignment Provisions
Learn about the key issues with commercial lease assignments and subletting.
It is fair to say that a broker and a tenant's attorney may be judged by how well the lease addresses the tenant's critical need for a realistic and flexible exit strategy. It is impossible to predict the floor space required for the efficient conduct of a tenant's business from year to year, and yet tenants routinely enter into five or ten year leases. Although there are draconian ways to ‘exit' a lease, such as a straight lease default or entering into bankruptcy, the much better solution is to negotiate and draft a fair and effective assignment and subletting provision that addresses the concerns of the landlord, tenant and the lender. In this topic, you will be led through the legal and business aspects of assignment and subletting on an issue-by-issue basis.
The presenters of this content will explain how to successfully wrestle to a fair conclusion the many thorny issues surrounding assignment and subletting. Their recommended language and tactical negotiation suggestions are supplemented by fully negotiated examples of assignment and subletting lease language and collateral documentation, including landlord's consent.
- You will be able to review transfer of tenant's interest, third-party transfers, related entities and operation of law.
- You will be able to explain consent/measurement of reasonability.
- You will be able to identify absolute landlord protections/intensity of use/type of use/exclusives/energy consumption.
- You will be able to discuss lender's concerns/lease modification requests.