White Paper

Landlord: I'll Always Be Yours (For Now): Assignment and Subletting


In commercial lease negotiations, the question of whether the landlord must be reasonable when approving an assignment of the lease or a sublease of the premises is often a contentious issue. One of the reasons the issue is so troublesome is that the meaning and scope of “reasonable consent” is very unclear and the landlord will be correspondingly uncertain as to how much control it has surrendered. Moreover, a good faith but incorrect response to a tenant’s request for consent to a transfer1 may yield unhappy results for the landlord—the termination of the lease for a material breach and/or the exposure to considerable direct and consequential damages.

Learning Objectives

- Identify the distinction between "unreasonable" and "bad faith".

- Discover standards found in landlord lease forms.

- Determine what the right of recapture entails.




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