You may desire to lease premises for your business with the intent to grow and sell the business for a profit. You can only do so if the lease allows for a sublease or assignment to a third party.
Subleasing and Assignment Considerations
You must not only negotiate with the landlord to allow a sublease or assignment, but you must also negotiate the type of consent that you must seek from the landlord. The tenant may be required to obtain landlord consent on a scale that ranges from reasonable consent not being unreasonably withheld, to strict requirements where a potential sublessee or assignee must meet specific criteria, including but not limited to:
- Minimum credit score thresholds
- Background checks
- Tangible assets valued at a specified amount
- A required number of years of business experience within the same industry
If you would like to discuss how we can help you draft, review, and/or negotiate a commercial lease on your behalf, please contact Kapadia Naik & Farhoudi or call us at 770-881-8081.