Sublease

Subleasing allows a commercial tenant to transfer some or all of their lease obligations to another party without formally terminating the original lease. The original tenant becomes the sublessor and remains legally responsible to the landlord for rent payments and lease compliance — even if the sublessee defaults. For healthcare tenants, subleasing can be a strategic tool when a practice needs to right-size its space, relocate, or manage excess capacity. Common scenarios include a practice that has relocated but still has lease obligations, or a solo practitioner who wants to share space with a complementary specialist. Most commercial leases require landlord consent for any sublease, and some landlords include recapture clauses allowing them to terminate the original lease if sublease is requested.

Subleasing can provide significant financial relief for healthcare practices facing space changes, but it carries legal and operational complexity. Understanding sublease rights before signing a lease helps practices plan for future flexibility.

A group of internists that downsized from 5,000 to 3,000 sq ft subleases the remaining 2,000 sq ft to a registered dietitian practice — offsetting $24,000/year in unused rent obligations.