The portion of sublease profits payable to the landlord.
By Angel Campa, Founder · Updated March 2026
Profit sharing clauses reduce the financial incentive for tenants to sublet at a markup. If the landlord takes 50% of sublease profits, a tenant subleasing 5,000 RSF at $5/RSF above their rate keeps only $12,500 of the $25,000 annual spread. This changes the economics of subleasing decisions and should be modeled before signing the lease, especially for tenants who may need to downsize.
In the "Assignment and Subletting" section, typically in a paragraph about "excess rent" or "sublease profits." The definition of "profits" (gross vs. net of transaction costs) and the split percentage are key terms.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the profit sharing % from your lease PDF. The AI searches for all pages of the document, then assigns a confidence score based on OCR quality and extraction certainty. Fields with lower confidence are flagged for human review.
Consent Required
Indicates if landlord approval is necessary for a transfer of the leasehold.
Consent Standard
The legal standard governing the landlord's right to refuse a transfer request.
Recapture Right
The landlord's right to terminate the lease and take back the space upon a transfer request.
Permitted Transferees
Exemptions allowing corporate restructurings or M&A without landlord consent.
Continuing Liability
Indicates if the original tenant remains financially liable post-assignment.
Landlords typically request 50% of sublease profits, though this is heavily negotiated. Some tenants negotiate down to 25-35% or eliminate the sharing requirement entirely. The definition of "profit" should deduct the tenant's reasonable costs (broker commissions, legal fees, build-out costs) before calculating the split.
Profits equal the sublease rent minus the tenant's lease rent for the sublet space, minus reasonable transaction costs. For example, if the tenant pays $30/RSF and subleases at $35/RSF for 3,000 RSF, the annual profit is $15,000 before deducting costs like broker commissions and legal fees.
What accuracy can you realistically expect from AI lease abstraction tools? We break down field-level accuracy rates, where AI excels, where it struggles, and how to validate output.
Compare the top AI lease abstraction tools for commercial real estate in 2026. We review Lextract, Prophia, Kolena, Leasecake, MRI Software, and more — with pricing, accuracy, and use-case guidance.
Free AI lease abstraction tools are fast and easy — but they have real limitations. Here is what free tools deliver, what they miss, and when you need structured output instead.
Upload your lease PDF and Lextract will extract profit sharing % along with 98 other structured fields in minutes. Just $20 per lease.
Upload Your Lease