Leases entered into by tenants at the height of the last real
estate boom tend not to be particularly tenant-friendly. Many
tenants re-structured during the recession and still hold surplus
space which, given the improving economic conditions is now getting
sublet. These boom time leases can be difficult to sublet
especially when undertenants think they have the upper hand in
negotiating heads of terms.
Often the heads of terms for these underlettings specify very
short deadlines to get the deals done. What the heads of terms
don't always do though is cater for the restrictions in the
terms of the superior leases. These are often less tenant-friendly
than the agreed heads of terms, and the relationship between the
parties can be irreparably damaged if the undertenant feels that
the tenant is seeking to renegotiate points previously agreed in
the heads of terms.
