A tenant who sublets all or part of its leased premises to a subtenant, thereby assuming the role of landlord in the sublease while remaining obligated to the original landlord under the master lease.
When a tenant sublets space, it becomes a sublandlord — creating a layered leasehold structure where the sublandlord sits between the master landlord and the subtenant. The sublandlord remains fully liable to the master landlord for all obligations under the master lease, regardless of the subtenant's performance. A sublease cannot grant the subtenant more rights than the sublandlord holds under the master lease. If the master lease is terminated (e.g., due to the sublandlord's default), the subtenant's rights typically terminate as well unless the master landlord has agreed to recognize the sublease. This risk is why subtenants seek non-disturbance agreements from master landlords.
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