Assignment and Subleasing in the Business Context

For most businesses, a lease is a significant investment and, like most investments, flexibility or inflexibility in transferring or disposing of a lease can have significant bottom line repercussions. In  negotiating a lease or in considering one’s options with respect to an existing lease, one of the most important provisions to consider is the “assignment and subletting provision”. For a tenant, carefully  drafted exceptions to landlord imposed restrictions can result in significant future savings of time and money and can smooth the way for numerous corporate and business transactions. For a landlord,  a carefully drafted provision can mean the difference between ending up with a tenant whose net worth and reputation are equivalent to what was relied upon when entering into the lease and being  stuck with a struggling ne’er do well who requires endless oversight and may end up having to be forced out via a lengthy and expensive forcible detainer proceeding.

This article will first address some basic guidelines to understanding the differences between assignments and subleases and secondly will discuss a landlord’s ability to restrict such transfers 

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