§ 21.03 Summary

• Jurisdiction: United States
• Publication year: 2022

§ 21.03 Summary

One of the most valuable and hotly contested rights in an office lease negotiation is the tenant's right to transfer its premises or a portion thereof through an assignment or a sublease. If the right is clear and relatively unfettered, the value of the tenant's leasehold is enhanced. The tenant may be able to sublease or assign a portion of the premises and realize a profit over the monetary obligations that it owes the landlord for that particular portion. More importantly, the tenant will have peace of mind in knowing that it can dispose of excess space if it does not need it for the operation of its business or if it needs to reduce its overhead for whatever reason. This allows needed flexibility in business planning decisions.

If the right is heavily restricted by the landlord under the lease, the tenant may find that it is difficult, if...