Total Credits: 1.2 MCLE, 0.0 Kansas Credit
Subleases are by their very nature filled with substantial risk. A sub-tenant agrees to take space – office, retail, or industrial – from a sub-landlord, pay the sub-landlord rent, and perform certain services. But between the sub-tenant and the senior landlord, the sub-tenant has no rights to assert against the senior landlord even though the sub-tenant’s use of the space may depend on the actions of the senior landlord. This sub-tenant is also at substantial risk of losing the space if either the senior or sub-landlord goes bankrupt. The relationship of these parties is highly complex. This program will provide you with a practical guide protecting subtenants in leasing.
• Counseling sub-tenant clients about the range of risks in subleases
• How to read master leases to spot red flags for tenants
• Types of subleases – what works for bigger/smaller clients and spaces?
• Identifying master lease’s control of subleasing and sublease terms
• Master lease money provisions, use restrictions, attornment provisions, and termination
• Determining whether sublease risks outweigh the benefits
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