29.1 II. Does The Direct Lease “Work”?

• Jurisdiction: New York

II. Does the Direct Lease “Work”?

In evaluating a sublease transaction, the potential subtenant needs to decide, as a threshold issue, whether the direct lease “works.” This initial evaluation represents a major departure from a direct lease transaction. If a lease provision effectively prevents the potential subtenant from using the space (e.g., if the lease prohibits the subtenant’s anticipated use of the space), the subtenant must raise the issue with the landlord promptly or be foreclosed from the...