Houston Leasing Information - Assignment and Subletting
Flexibility with regards to
assignment and subletting of space is crucial to the long-term success
of any lessee. To that end, there are several subcategories, which must
be thoroughly addressed.
- Landlord rights to recapture
- Landlord's consent and standards for consent
- Assignment and definition of profits
- Recognition of subtenant's rights if tenant defaults
- Rights to assign or sublease or terms defined by the tenant
- Right to recover true costs of subletting or assignment
- Right to sublet or assign to an affiliated company or company owned
by tenant
- Right to transfer parking
- Signage rights
The Six Step Approach
Step 1: Analyze Requirements
Step 2: Analyze the Market
Step 3: Identify Opportunities
Step 4: Goals and Objectives
Step 5: Develop Strategy
Step 6: Execute Strategy
Key Issues in a Lease
A Tenant's Perspective
Non-Disturbance
Non-Disturbance and Memorandum of Lease
Tenant's Rights to Make Repairs
Assignment and Subletting
Abatement of Rent When Tenant Is Prevented from
Using Premises
Quality of Construction-Standard for Maintenance,
Repairs & Operations
Definition of Fair Market Rental Rate
Default by Tenant
Operating Costs, Taxes & Utilities
Tenant's Indemnification
Administration Fee