The Assignment & Subletting clause is typically one of the more heavily negotiated clauses in an office lease—for good reason. While a landlord is heavily vested in ensuring that the original tenant continues to be in occupancy of the space, the tenant understands that business needs change over time and that demands flexibility. A thoughtful practitioner will be able to achieve his client’s desired goals while providing the other side with the flexibility and comfort that it requires for its business.
This presentation will offer suggestions on how to effectively negotiate the various concepts in the Assignment & Subletting clause from both the landlord’s and the tenant’s points of view. Some of the issues covered will be:
- When to ask for consent (when tenant has prospective assignee/sublessee vs. intention to assign/sublease)
- Landlord’s right to approve or deny a request for assignment or subletting in its sole discretion vs. reasonable discretion
- Time periods for landlord to respond, and deemed consent in the event of a failure to respond
- Recapture vs. leaseback
- Carve-out from landlord’s consent right for certain related party transactions
- Use clause
Program Co-sponsor: Vendome Real Estate Media
Faculty: Amol Pachnanda, Ingram Yuzek Gainen Carroll Bertolotti, LLP; Member, Board of Advisors, Commercial Tenant’s Lease Insider.
Moderator: Elizabeth Purcell-Gibney, Editor, Commercial Tenant’s Lease Insider, Vendome Real Estate Media