Another very significant clause is the sublease clause which is very important because this is the tenant’s escape clause. The reason that it’s a difficult clause is because the landlord does not want to give the tenant an escape clause. However, in today’s economy it is very important for a tenant to have flexibility; companies need to expand and attract with market conditions. The sublease clause gives the tenant the flexibility they need. If the tenant is growing and expanding they will need more space. They will be able to sublease their present space and find a new larger location. If business is slow the company will need less space and will be able to lease out a portion of their space. The wording of this clause must be negotiated very carefully so that tenant is not impeded if it needs more or less space.
The most important phrase in the sublease clause states that the landlord will not unreasonably withhold their consent for the tenant to sublease their space. This wording must be in the clause. Furthermore, the landlord will put restrictions on the type of company and their financials: the keys are that the potential subtenant should have good financials but not necessarily as good as the sub lessor. Also, the subtenant can have a similar type of use as the subleassing company but not necessarily the same type of company. For example, if a law firm is subleassing space the sublesee can be any type of office use, (accountant, insurance, real estate), but not necessarily another law firm.