29.15 A. Assignment And Subletting; Alterations And Consents

• Jurisdiction: New York

a. Assignment and Subletting; Alterations and Consents

Depending on the language of the assignment and subletting provisions of the direct lease, the parties may simply want to incorporate these provisions wholesale from the direct lease.⁸⁹⁹ At a minimum, whether as an independent provision in the sublease or as an incorporated provision from the direct lease, the sublease should address whether the sublandlord can “recapture” the subleased premises or participate in any profits from an assignment of the sublease or a further subletting. A landlord usually will try to participate in assignment or subletting “profits” under the theory that the only party who should make any “profits” from the landlord’s building is the landlord. The sublandlord may seek to include in “profits” any amounts paid for furniture, fixtures or leasehold improvements to the extent the subtenant is purchasing those items. This argument does not extend to the treatment of “losses,” of course. The strength of this argument is diminished...