Landlords can assign the rent that they receive from a commercial tenant to another person or entity. They usually do this to pay off an outstanding debt or other obligation. They can also use it as a way to fund other business ventures.
If a landlord assigns its right to the rental payments, the tenant must pay its rent obligation to a different entity, but the responsibility to pay rent will generally stay the same. The assignor can often step into the shoes of the landlord and force a tenant out of a specific location if the tenant is not meeting their rental obligations.
A commercial sublease, on the other hand, deals with the tenant’s right to allow someone else to lease the property from them. Subleases are generally only permitted if the commercial lease does not prohibit them. In many circumstances, the tenant must get permission from the landlord to engage in a commercial sublease agreement. Often, subleases may not be possible because of restrictions in the commercial lease, including specific limits that affect the type of business that can move into that particular location.
Can't find what you are looking for?
Contact us here.