End Game: How A Sublease Can Survive Beyond Its Head Lease

In the world of commercial leasing, the relationship between landlords and tenants and, by extension, subtenants, is at the heart of the leasing arrangement. But what happens when arrangements change and relationships shift? Particularly that between the landlord and tenant—what is the impact on the subtenant? For instance, if a head lease ceases to exist, what becomes of the sublease?

One might reasonably conclude that a sublease cannot exist without a head lease. Yet this is not necessarily the case. Understanding why is critical in determining the rights and obligations of the parties when a head lease comes to an end.

An Important Distinction: Surrender vs Termination

As a starting point, the distinction between a surrender of lease and a termination of lease is noteworthy. While they are both the means to the same or similar end, the distinction is critical when determining the outcome for a sublease.