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If you’re already leasing premises for your business and want to sublease the whole or part of these premises to another party, this is known as subleasing your premises. In 2025, subleasing remains a popular strategy for businesses looking to maximise the use of their space while offsetting rental costs.
When inviting an incoming sub-tenant, you want to make sure that the details surrounding your relationship with both them and your head landlord are clearly set out in writing. This can help you avoid any legal headaches down the track, especially given the recent updates to commercial leasing laws.
This is where a Commercial Sublease Agreement comes into effect.
What Is A Commercial Sublease Agreement?
A Commercial Sublease Agreement is a legal contract that defines the relationship between you (the existing tenant) and the incoming sub-tenant to whom you are subleasing the premises. It is especially crucial in 2025, when clarity around obligations and responsibilities under updated leasing guidelines is more important than ever.
Even though you have an existing lease with specific obligations to your head landlord, a sublease agreement with a third party operates separately. Think of it as a distinct set of obligations that run in parallel – and for the duration of your original lease. Whether you’re operating as a sole trader (read more about operating as a sole trader) or through a company structure, ensuring a well-drafted sublease agreement is key.
However, you must ensure that your landlord allows a sublease (you may need to review your Commercial Lease Agreement to confirm this). Recent industry updates in 2025 have seen clearer guidelines on landlords’ consent, so it’s essential that you check this detail before proceeding.
What Does It Include?
A Commercial Sublease Agreement includes the essential details of your sublease arrangement. It is not only vital for preventing future disputes but also for ensuring that every party clearly understands their responsibilities. Key elements typically covered in the agreement include:
- The consent of the head landlord
- Payment of rent and the method of payment
- Duration and lease expiration dates
- Security deposit details
- Insurance requirements and liabilities
- Other duties and obligations relevant to the sublease
It’s worth noting that under a Sublease Agreement, the sub-tenant’s obligations are to you rather than directly to the head landlord. That’s why it’s so important to have every key term clearly outlined – including who will pay what, and when. For a more detailed look at how contracts should be structured, our guide on contract review and redrafting may be of interest.
How Can I Get A Commercial Sublease Agreement Drafted?
A Commercial Sublease Agreement needs to be tailored to your business’s specific circumstances and the terms of your head lease. With the recent commercial leasing reforms in 2025, it’s even more critical to ensure that your agreement is drafted accurately. For this reason, it’s a great idea to get a lawyer involved early on.
For instance, if you only want to sublease a portion of your premises and are unsure whether your existing lease permits this, speaking to a legal professional can save you time and potential disputes. Our experts at Sprintlaw are well-versed in handling these arrangements, and we can assist with not only drafting your document but also ensuring that it complies with the latest legal requirements.
At Sprintlaw, we offer a Commercial Sublease Agreement package that is designed to cover your specific needs. This package includes:
- A Commercial Sublease Agreement tailored to your business
- Advice on your legal rights and obligations under current 2025 regulations
- A comprehensive review of your Head Lease to ensure subleasing is permitted
- An examination of a title search on the leased premises
- Phone consultations with a Sprintlaw lawyer to answer your queries (learn more about our legal support)
- A complimentary amendment to the final draft provided
Next Steps
When it comes to fulfilling your contractual obligations or entering into a new one, you need to ensure your business remains compliant with the latest laws. Updated subleasing guidelines for 2025 stress the importance of clear documentation to prevent misunderstandings and to secure your interests.
Additionally, with recent regulatory changes, it is advisable to review all contractual documents in line with modern standards. Our Business Startup Checklist offers valuable insights for ensuring that your business remains on the right side of the law while maximising your operational flexibility.
Getting tailored legal help for your Commercial Sublease Agreement is essential to avoid unnecessarily complex issues and to clearly delineate everyone’s responsibilities. In 2025, being proactive with your legal documentation can only benefit your business in the long run. If you would like a consultation on your options going forward, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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