Commercial Sublease Agreement Template: Definition & Sample

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What is a Commercial Sublease Agreement Template?

A commercial sublease agreement template is a fundamental and customizable contract between a lessor, sometimes called the sublandlord, and the person or company renting the property often called the subtenant. These agreements are used in place of a typical leasing agreement when the sublandlord does not own the property but instead rents it from the property owner.

Commercial sublease agreement templates can help you have an essential foundation for a critical legal document. Commercial sublease templates usually start with the bare bones of a typical sublease agreement, but unique circumstances need to be considered and accounted for when preparing a commercial sublease agreement.

Common Sections in Commercial Sublease Agreement Templates

Below is a list of common sections included in Commercial Sublease Agreement Templates. These sections are linked to the below sample agreement for you to explore.

Commercial Sublease Agreement Template Sample

THIS SUBLEASE AGREEMENT (this “Sublease”) dated as of May 14, 2007 is by and between GETTY IMAGES, INC., a Delaware corporation (“Sublandlord”), and GOOGLE INC., a Delaware corporation (“Subtenant”).

A. Pursuant to the lease dated November 30, 1999 (together with all amendments, modifications and exhibits thereto, the “Master Lease”) between Park View Waterside LLC, a Washington limited liability company, successor in interest to The Quadrant Corporation, a Washington corporation, as landlord (“Landlord”), and Sublandlord, as tenant, Sublandlord is leasing approximately 62,518 rentable square feet of space (the “Premises”) in the Waterside Building located at 651 Canal Drive, Seattle, Washington (the “Building”) and approximately 117,743 rentable square feet of space in the Park View Building located at 601 N. 34st Street, Seattle, Washington (the “Park View Building”) in the Quadrant Lake Union Center (the “Business Park”). A copy of the Master Lease is attached hereto as EXHIBIT A.

B. Subtenant wishes to sublease from Sublandlord, and Sublandlord wishes to sublease to Subtenant, approximately 60,071 rentable square feet of space, located on the first, second and third floors of the Building.

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by the parties, Sublandlord and Subtenant hereby agree as follows:

Upon the Commencement Date, as defined below, Sublandlord hereby subleases to Subtenant and Subtenant hereby subleases from Sublandlord approximately 55,800 rentable square feet of space, located on the first, second and third floors of the Building (the “Subleased Premises”), as depicted on the site plan attached hereto as EXHIBIT B, upon all of the terms and conditions set forth herein. From and after December 1, 2007, the Subleased Premises shall be expanded to include the additional portion of the first floor of the Building depicted on Exhibit B-1 attached hereto, consisting of approximately 4,271 rentable square feet thereby increasing the size of the Subleased Premises to 60,071 rentable square feet. The Parties may agree at any time under this Sublease to measure the rentable square feet of the Subleased Premises in accordance with standards set forth in the Master Lease. If such measurement results in a different sum for the total rentable square feet of the Subleased Premises, and upon agreement of the Parties on any corrected measurement of rentable square feet, all provisions herein that refer to “rentable square feet” shall be modified to reflect such corrected rentable square feet and any related calculations based upon rentable square feet shall be redone to reflect the corrected rentable square feet. All provisons of this

Sublease, other than the Term and payment of rent, shall be in effect from the date of mutual execution of this Sublease and Subtenant shall provide to Sublandlord and Landlord evidence of the insurance required hereunder prior to commencement of any construction or other activity in the Subleased Premises by or on behalf of Subtenant.

The term of this Sublease (the “Term”) shall commence on the earlier of (a) two weeks from the date of Substantial Completion, as defined below, of the Subleased Premises pursuant to Section 3 or (b) June 1, 2007 (the earlier of such dates, the “Commencement Date”), provided in each instance that Landlord’s written consent to this Sublease has first been obtained, and shall expire on August 11, 2013 the “Expiration Date,” unless sooner terminated as provided in this Sublease. Sublandlord hereby agrees with Subtenant that Subtenant shall be entitled to negotiate a lease of the Subleased Premises directly with Landlord, to commence at the expiration of the Master Lease, provided that Landlord and Sublandlord have then amended the Master Lease to delete the area contained in the Waterside Building from the Premises leased by Sublandlord.

Sublandlord shall, at its sole cost and expense, and subject to Landlord’s prior approval pursuant to Section 13.1 of the Master Lease and using union contractors, demise the first floor premises (the “Sublandlord’s Work”) to ensure that first floor tenants other than Subtenant shall have access to their premises solely through the first floor lobby area.

Upon mutual execution of this Sublease, Subtenant shall have the right to engage an architect/space planner to develop the preliminary drawings, plans and specifications (the “Design Documents”) for the design and construction of new carpet and paint, and any additional improvements Subtenant desires to make to the interior of the Subleased Premises (collectively, the “Subtenant Alterations”). Following Sublandlord’s and Landlord’s rights of approval and acceptance of the Design Documents, as provided for in Section 13.1 of the Master Lease, Subtenant’s architect shall develop detailed construction drawings, plans and specifications substantially in conformance with the Design Documents (the “Construction Documents”) for approval by Sublandlord and Landlord.

Subtenant shall construct the Subtenant Alterations in accordance with the Construction Documents. “Substantial Completion” of the Subtenant Alterations shall occur when (a) the City of Seattle has issued a certificate of occupancy for the Subleased Premises, and (b) the construction of the Subtenant Alterations has reached a stage of completion at which the Subleased Premises may be or becomes occupied by Subtenant and used for their

intended purpose. The fact that minor details of construction, mechanical adjustments or decorations, which do not materially interfere with Subtenant’s use and enjoyment of the Subleased Premises, remain to be performed shall not delay Substantial Completion from having occurred. Subtenant’s selection of contractors and subcontractors shall be subject to Sublandlord’s and Landlord’s reasonable approval. In selecting its contractors and subcontractors, Subtenant shall only be permitted to use Titan Electric for electrical work, and McKinstry Co. for HVAC and plumbing work to be performed, provided that each such contractor offers competitive pricing for the work, unless otherwise approved by Sublandlord. All work shall be done by union contractors and subcontractors.

Sublandlord shall provide to Subtenant an “Improvement Allowance” of up to $837,000 ($15 per rentable square foot for each of the approximately 55,800 rentable square feet) for the Subtenant Alterations, which shall include up to $8,370 ($0.15 per rentable square foot for each of the approximately 55,800 rentable square feet) toward the cost of inital space plans, (the “Design Costs”). The Design Costs, construction and installation of the Improvements pursuant to the Construction Documents, including without limitation the cost of engineering and construction drawings, architectural fees and permits, shall be charged against the Improvement Allowance until the Improvement Allowance is exhausted. In the event that the cost of the Subtenant Alterations exceeds the Improvement Allowance, the excess shall be the sole responsibility of and be paid by Subtenant. Furthermore, in that event that the Design Costs exceed $8,370, the excess Design Costs shall be the sole responsibility of and be paid by Subtenant.

If required by Landlord at the time Landlord and Sublandlord provides its consent to any alterations or improvements, Subtenant shall, at Subtenant’s sole cost and expense, at the expiration or termination of this Sublease, remove any alterations or improvements designated by Landlord, repair any damage caused by removal, and restore the Subleased Premises to the substantially the same condition prior to the Subtenant’s installation of the alterations or improvements.

On the Commencement Date and on the first day of each month thereafter during the Term, Subtenant shall pay to Sublandlord the following as “Base Monthly Rent:”

$29.25 per rentable square foot/12

If the Commencement Date falls on other than the first day of a calendar month, rent for the first month of the term shall be prorated by dividing the number of days remaining in the month by the total number of days included in the month.

If the Expiration Date falls on other than the last day of a calendar month, rent for said month shall be pro rated by dividing the number of days remaining in the Term by the number of days included in the month.

For purposes of this Sublease, “Subtenant’s Share” shall be the percentage that the approximate rentable area of the Subleased Premises as stated in this Sublease bears to the approximate rentable area of the Premises as stated in this Sublease. On the Commencement Date and on the first day of each month thereafter during the Term, in addition to the Base Monthly Rent payable pursuant to Section 4.1, Subtenant shall pay Subtenant’s Share of the amount of Operating Expenses (as defined in the Master Lease) with respect to the Premises payable by Sublandlord to Landlord pursuant to the Master Lease (“Additional Rent”). Sublandlord shall give Subtenant written notice of Sublandlord’s estimate of the amount of Additional Rent per month payable pursuant to this Section for each calendar year promptly following Sublandlord’s receipt of Landlord’s estimate of the Operating Costs payable by Sublandlord for the Premises under the Master Lease. Subtenant shall also pay to Sublandlord as Additional Rent hereunder Subtenant’s Share of any and all sums which Sublandlord may be required to pay Landlord under the terms of the Master Lease other than amounts resulting solely from Sublandlord’s default under the Master Lease.

Base Monthly Rent, Additional Rent and all other sums payable by Subtenant to Sublandlord under this Sublease, whether or not expressly designated as “rent” (collectively, “Rent”) shall be paid without prior notice, demand, set off, counterclaim, deduction or defense and, except as otherwise expressly provided in this Sublease, without abatement or suspension. All Rent shall be paid to Sublandlord at the address for notices set forth in Section 19, in lawful money of the United States of America, or to such other person or at such other place as Sublandlord may from time to time designate in writing. Rent for any period during the Term that is for less than one month shall be prorated for the actual number of days in such period. If any installment of Rent due from Subtenant hereunder is not received by Sublandlord within five (5) business days of the date it becomes due, Subtenant

shall pay to Sublandlord on demand an additional sum equal to five percent (5%) of the overdue amount as a late charge; provided, that, prior to the imposition of such late charge, Subtenant will be entitled to a grace period of five (5) days following notice from Sublandlord with respect to the first (1 st ) occurrence in any calendar year when any sum is not paid as of the date due.

If, during the Term hereof, additional space of Sublandlord on the first floor of the Building becomes available and Sublandlord determines to re-sublease all or part of same, or Sublandlord determines to sublease all or part of Sublandlord’s space in the Park View Building (collectively, the “Right of First Opportunity Space”), Sublandlord shall notify Subtenant of the Base Monthly Rent at which Sublandlord is willing to lease the offered Right of First Opportunity Space. If Subtenant elects, by written notice to Sublandlord within five (5) business days after receipt of Sublandlord’s notice, to lease the offered Right of First Opportunity Space for such Base Monthly Rent, such Right of First Opportunity Space shall be leased to Subtenant pursuant to this Sublease at the specified Base Monthly Rent commencing at such date as the parties shall mutually agree and in no event later than the date which is thirty (30) days from the date of Subtenant’s notice of exercise hereunder, subject to Landlord’s approval. Sublandlord and Subtenant shall promptly execute an amendment to this Sublease reflecting the addition of such Right of First Opportunity Space to the Premises (and redefining the Building to include the Park View Building, if applicable) and the Base Monthly Rent applicable thereto. If Subtenant does not timely exercise its rights hereunder, Sublandlord may lease the Right of First Opportunity Space to third parties for an amount equal to or greater than the Base Monthly Rent specified in Sublandlord’s notice. In no event shall Subtenant have the right to lease less than all of the Right of First Opportunity Space offered by Sublandlord.

Subtenant shall use the Subleased Premises only for the purpose of general office use in accordance with Section 7.1 of the Master Lease, which may include, subject to Landlord’s prior written approval, providing a cafeteria for Subtenant’s employees in accordance with Section 6.1 and allowing Subtenant’s employees to bring their dogs to work in compliance with the provisions of Section 6.2.

(a) Incidental to Subtenant’s permitted use but subject to Landlord’s and Sublandlord’s approval of all of the details of the location, design and construction thereof and subject to all of the other terms of this Lease, Subtenant shall have the right, but not the obligation, at its expense and in accordance with applicable Laws, to use a portion of the Subleased Premises for the installation and operation of dining facilities (the “Dining Facilities”), including facilities for food and beverage preparation, handling, cooking and other associated facilities.

(b) If Subtenant so installs, maintains or operates such Dining Facilities, Subtenant shall, at Subtenant’s sole cost and expense:

(i) Install and maintain in all cooking areas, chemical fire extinguishing devices (such as an ansul) approved by the Fire Insurance Rating Organization having jurisdiction over the Subleased Premises and, if gas is used in the Subleased Premises for cooking or other purposes, suitable gas cut-off devices (manual and automatic);

(ii) Prevent fat, grease, or any other greasy substance from (x) entering the waste lines of’ the Building by using grease trap or similar device(s) and (y) accumulating in the exhaust hoods and fans;

(iii) Handle and dispose of all rubbish, garbage and waste from the Dining Facilities in accordance with all applicable Laws and in areas designated by Landlord from time to time in accordance with reasonable regulations established by Landlord and not permit the accumulation of any rubbish or garbage in, on, or about any part of the Building. All food or food product rubbish, garbage or’ waste shall be stored in closed containers and kept in refrigerated areas, to be installed at Subtenant’s expense. Subtenant shall also be responsible for the costs of removal of the food related waste and must obtain Landlord’s approval of the location for the refrigerated dumpster. Subtenant shall obtain Landlord’s approval of the vendors related to the grease traps and waste and other aspects of the Dining Facility. Subtenant will make the maintenance records on the grease trap, fire extinguishers, etc., available for review by Landlord’s Property Manager.

(c) In connection with the installation, maintenance or operation of the Dining Facilities, Subtenant shall not use the plumbing facilities of the Building for any purpose other than that for which they were constructed, or dispose of any garbage or other foreign substance therein, whether through the utilization of so-called “disposal” or similar units, or otherwise.

(d) In connection with the installation of cooking facilities in the Dining Facilities, Subtenant may, at Subtenant’s sole cost and expense, in the location(s) designated by Landlord, in accordance with, and subject to, the provisions of the Master Lease, install (i) an exhaust shaft or flue (it being agreed that Sublandlord will cooperate with Subtenant in locating appropriate space for an exhaust shaft or flue), and (ii) an exhaust fan, the location and design of which shaft and fan, and the manner and method of installation of which shaft and fan, shall be subject to Landlord’s prior written approval. Subtenant shall maintain and operate said shaft and fan in good working order and condition and in compliance with all applicable Laws. Subtenant shall be responsible for, and pay, all costs and expenses associated with or related to the installation, maintenance, repair and operation of said shaft and fan, including, without limitation, the furnishing and installation of all related ductwork. Subtenant

shall, at Subtenant’s sole cost and expense, maintain in good working condition, and make all necessary repairs to and replacements of, said shaft or fan. Subtenant shall at all times cooperate with Landlord and abide by the regulations and requirements which Landlord may from time to time reasonably prescribe for the proper functioning and protection of said shaft and fan.

(e) For so long as the Dining Facilities are being used or operated as a kitchen or dining facility, the liability insurance described in Section 13 of this Sublease shall expressly cover such use and occupancy and shall include Products and Completed Operations coverage, and if alcoholic beverages are served in, at or from the Dining Facilities, said liability insurance shall also include coverage with respect to any potential liability of Landlord, Sublandlord, and Subtenant under any applicable Law.

(f) In addition to the Dining Facilities, Subtenant may also install one (1) or more standard office pantry areas and vending machines in the Premises for use by Subtenant and Subtenant’s employees, agents, contractors and invitees.

(g) Subtenant shall be responsible for complying with Landlord’s rules and regulations regarding any possible odors, insects and vermin related to the food operations.

(h) Landlord’s approval of the design of the Dining Facilities may be conditioned upon matters of concern to Landlord, such as removal of same and restoration at the end of the term.

(i). Landlord’s approval of the plans and specifications for the buildout of the Dining Facility will also be subject to Landlord’s determination of whether there is a suitable location for Subtenant’s refrigerated food waste dumpster.

For purposes of this Section only, the term “ Subtenant” shall include, and be limited to, only Google Inc. Notwithstanding anything to the contrary contained elsewhere in the Lease, the Subtenant shall be permitted during the Term of the Lease, and, as applicable, each Extension Term, to bring fully domesticated and trained dogs, kept by the Subtenant’s employees as pets into the Sublease Premises, provided and on condition that:

(a) there shall not be more than five (5) dogs on any floor comprising the Sublease Premises at any one time;

(b) all dogs shall be strictly controlled at all times and shall not be permitted to foul, damage or otherwise mar any part of the Building or Project (including the Sublease Premises) or cause any loud noise whether through barking, growling or otherwise;

(c) any dog brought into and remaining in the Building shall be limited to the hours between 6:00 a.m. and 8:00 p.m. and shall be brought into the Building and the Sublease Premises through the loading bay and freight elevator only (it being agreed and understood that Subtenant may be required to request overtime freight elevator service if the dogs vacate the Building at hours other than during normal business hours for the Building);

(d) all dogs shall remain in the Sublease Premises and not wander throughout the Building or otherwise be left unattended;

(e) while outside the Sublease Premises (i.e., in any common area of the Building or Project), all dogs shall be kept on leashes and accompanied by Google employees ;

(f) upon Landlord’s request from time to time, Subtenant shall provide Landlord with evidence of all current vaccinations for dogs having access to the Sublease Premises and the Building or Project;

(g) Subtenant shall be responsible for any additional cleaning costs and all other costs which may arise in connection with the dogs’ presence;

(h) Subtenant shall be liable for, and hereby agrees to indemnify and hold Landlord and Sublandlord and all of Landlord and Sublandlord’s agents, invitees, contractors, licensees and employees (“Landlord Parties”) harmless from any and all claims arising from any and all acts (including but not limited to biting and causing bodily injury to, or damage to the property of, another tenant, subtenant, occupant, licensee, invitee or an employee of Landlord or Sublandlord or any of the Landlord Parties) of, or the presence of, any dog in or about the Sublease Premises, the Building or the real property upon which the Building or Project is located (the “Real Property”);

(i) Subtenant shall immediately remove any dog waste and excrement from the Sublease Premises, the Building and the Real Property. If Landlord or Sublandlord reasonably determines that Landlord or Sublandlord has incurred or is incurring increased janitorial (interior or exterior) maintenance costs as a result of the dogs’ presence, Subtenant shall reimburse Landlord or Sublandlord for such costs as Additional Rent within twenty (20) days of Landlord’s or Sublandlord’s demand;

(j) if, at any time during the Term, (x) Landlord or Sublandlord receives complaints from other tenants or occupants of, or invitees to, the Building regarding (i) the dogs’ activities, (ii) the dogs’ noise level or (iii) allergic reactions suffered as a result of the presence of any dog, or (iv) otherwise related to the dogs, or (y) Landlord or Sublandlord reasonably determines that the presence of any and all non-service dogs is disruptive to the maintenance and operation of the Building or Project or otherwise reduces the value or reputation or marketability of the Building or Project or is in violation of the Covenants, Conditions and Restrictions applicable

to the Project, or (z) Subtenant has failed to comply with any of the provisions set forth in this Section, Sublandlord or Landlord shall notify Subtenant thereof and, Landlord or Sublandlord may revoke Subtenant’s rights under this Section;

(k) no dog with (or suspected of having) fleas is to be brought into the Building;

(l) Subtenant shall be responsible for, and indemnify, defend, protect and hold Landlord and Sublandlord harmless from and against any and all costs to remedy any and all damages caused to the Building, the Real Property or any portion thereof or to the Sublease Premises or subpremises or property of any occupant or visitor to the Building or the Real Property by any dog; and

(m) Subtenant shall comply with all applicable Laws associated with or governing the presence of a dog within the Sublease Premises and/or the Building and such presence shall not violate the Certificate of Occupancy.

Subtenant shall, at Subtenant’s own cost and expense and without liens, keep, repair, maintain and replace the Subleased Premises, and every non-structural portion thereof, including all fixtures, equipment and the Subtenant Alterations, in Class “A” order, condition and repair and shall make all replacements necessary to keep the same in such condition. Subtenant shall not commit or suffer to be committed any waste in or upon the Subleased Premises or any nuisance or other act or thing which may disturb the quiet enjoyment of any other tenant in the Building.

Subtenant shall not make any alterations, additions or improvements in the Subleased Premises without first obtaining Sublandlord’s written consent, which consent shall not be unreasonably withheld, conditioned or delayed, and also complying with the requirements applicable to alterations, additions and improvements imposed by the Master Lease (including without limitation obtaining Landlord’s written consent). All such alterations, additions and improvements shall be at the cost and expense of Subtenant, and shall become the property of Sublandlord (or Landlord pursuant to the Master Lease) and shall remain in and be surrendered with the Subleased Premises as a part thereof at the termination of this Sublease, without disturbance, molestation or injury, except for any improvements that Sublandlord may elect and require as part of its written consent to require Subtenant to remove (or Landlord may require as part of its written consent to be removed). Subtenant agrees to comply with all laws, ordinances, rules and regulations of the appropriate city or county, and any other authorized public authority, in performing any work in the Subleased Premises.

Commencing with the Commencement Date, Subtenant shall pay Sublandlord for the right to use two (2) parking stalls per 1,000 rentable square feet of the Premises, for access to the Building parking garage (the “Garage”) throughout the Term (the “Parking Stalls”), at an initial rate of $115.93 per stall, per month, which rate shall increase by 3% as of August 13 of each year. For purposes of calculating the number of Parking Stalls under this Section, the rentable square feet of the Premises shall be rounded up or down to the nearest one thousand. Sublandlord shall provide Subtenant with one parking access card (“Parking Card”) per stall under this section.

Sublandlord shall list Subtenant on a directory board in the lobby on the second floor of the Building. Subtenant may, at its sole cost, install and maintain signage at the entrance of the Subleased Premises, either on the door, the adjacent relight or the adjacent wall. The size and design of such directory listing and signage shall be subject to Sublandlord’s approval, which approval shall not be unreasonably withheld, conditioned or delayed, and also to Landlord’s approval as set forth in the Master Lease. Subtenant may, at its sole cost, and subject to Landlord’s approval and the terms and conditions set forth in the Master Lease, install one sign on the exterior of the Building, with the size and design to be subject to the further approval of Sublandlord. Subtenant shall remove all signage (both interior and exterior) at the end of the Term, and repair any damage caused by such removal or the prior installation and restore the Building interior and façade to the condition satisfactory to Landlord pursuant to the Master Lease.

Subtenant and its employees, invitees and agents shall have access to the Subleased Premises 24 hours per day, seven days per week. Subtenant shall be provided, at no charge, with an access card for each of Subtenant’s employees for the proximity reader card system controlling access to the Building’s exterior doors, and elevators. A customary fee shall be charged for additional or replacement cards. Subject to the terms of the Master Lease, Subtenant shall have the right to use the Common Areas (as defined in the Master Lease) on a non-exclusive basis with Landlord, Sublandlord, other tenants in the Building and the Business Park and their respective officers, employees, guests, invitees and agents.

Subtenant may access and/or use the roof of the Building consistent with and subject to the terms of the Master Lease (including installing and maintaining Antennae, as defined in the Master Lease, for Subtenant’s own use) and subject to Sublandlord’s prior written approval in all instances.