Subleasing and Assignments
This week McGraw Commercial Properties’ Neil Dailey spoke again with Rich Marshall with Conner & Winters, this time discussing the process of subleasing and assignments.
Here is a brief look at what they discussed:
What is an Assignment?
From a tenant’s perspective is them relinquishing their rights to lease the space and giving them to a new party via the agreement. The new tenant then assumes all rights and responsibilities of the lease document. With an assignment, the old tenant isn’t always off the hook. Sometimes the landlord requires the old tenant to still be liable for how the new tenant performs for the remainder of the lease.
What is the Difference Between an Assignment and Subleasing?
The main difference between subleasing and an assignment is that during an assignment, the tenant relenquishes all their rights to the new tenant. However during a sublease, the original tenant is still responsible for how the new tenant performs during the lease term. The lease agreement can sometimes include a clause that gives the tenant personal choice to assign or sublease the property.
MCGRAW COMMERCIAL PROPERTIES
McGraw Commercial Property specialists offer top service by drawing from their diverse credentials and wealth of CRE experience. Contact us today if you are looking to grow your business or investment portfolio.