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Commercial

Sublease

Definition

A lease of space by an existing tenant to a third party, with the original tenant remaining liable.

Example

The office tenant subleased two floors it no longer needed while remaining obligated on the master lease.

Frequently asked questions

What does Sublease mean in real estate?

A lease of space by an existing tenant to a third party, with the original tenant remaining liable.

How is Sublease used in practice?

The office tenant subleased two floors it no longer needed while remaining obligated on the master lease.

This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.