A subletting and sublease consent clause governs the tenant's ability to lease all or part of the premises to a subtenant (sublessee) while the original tenant (sublessor) retains the primary lease obligation. Unlike an assignment, the original tenant remains liable to the landlord even after subleasing, creating a dual layer of tenancy with distinct legal relationships.
By Angel Campa, Founder · Updated March 2026
Subletting rights provide tenants with critical flexibility to manage surplus space, share occupancy costs, and generate rental income that offsets their primary lease obligation. For office tenants facing workforce reductions or operational changes, the ability to sublease excess space can mean the difference between a financially manageable lease obligation and a portfolio crisis. The sublessor remains on the hook to the landlord regardless of the subtenant's performance, so careful due diligence on subtenant creditworthiness is essential even after obtaining landlord consent.
Negotiate the same "not unreasonably withheld" standard as for assignments, and include a deemed-consent mechanism after 30 days of landlord silence. Push to exclude subleases of less than 25%–50% of the premises from the consent requirement entirely, allowing de facto workspace sharing arrangements. Delete or limit recapture rights in connection with subletting requests, as they fundamentally undermine the value of subletting rights. Include specific language confirming that the original tenant's obligations to the landlord survive any sublease arrangement, which is the law in most jurisdictions but should be expressly confirmed.
Consent required for all subleases (most common), consent-free subleases of less than a threshold percentage, sublease rights conditioned on profit-sharing with landlord, and sublease rights limited to existing tenants already occupying the building.
Lextract extracts these fields directly from your lease PDF when this clause is present:
Assignment and Consent Clause
An assignment and consent clause governs the tenant's ability to transfer its entire leasehold interest to a third party (assignee) who then becomes the new tenant under the lease.
Recapture Clause
A recapture clause gives the landlord the right to take back — recapture — the leased premises when the tenant requests consent to assign the lease or sublet the space.
Personal Guarantee Clause
A personal guarantee clause is a provision by which an individual — typically the principal owner or officers of the tenant entity — unconditionally guarantees all obligations of the tenant under the lease.
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