Texas Real Estate Blog

Assignments vs Subleases | June 15, 2011

Those of you outside the DFW Metroplex are probably a little sick of hearing about the tremendous win by our Mavs last week. Sorry, but I can’t let this post go by without paying homage to a team that pulled off one of the biggest and most satisfying upsets in NBA history. I called this for the Heat in 4. I mean, come on, the Heat, on paper, is the most talented team in the NBA and, I guarantee, they will win their share of Championships, but what a testament to, and perfect example of, pure American grit (by a German no less) and determination. Congratulations to the Mavs organization and thanks for a memory we in Dallas will cherish for a long time.

Now, to business. This post is devoted to assignments and subleases. I know, another riveting exhortation on lease transactions. However,  this area has become hot with all the movement in the leasing arena. We have had many clients move from their existing space to bigger and better digs because of the fabulous rental rates in the market today. We have also had many clients trying to unload their lease space to fend off bankruptcy. So, short of giving the space back to the landlord, what are the alternatives? Answer–assign or sublease the premises. Once the hard part (finding a viable subtenant) is done, the next crucial part of the process is the actual transfer and all the legal complexities attendant thereto. Most of our clients who are not in the real estate business assume that once they assign the lease or sublet the premises to someone, they are off the hook forever. Not even close. As such, attached is a fairly detailed article which addresses the differences between the two alternatives, the strategy behind both and the ramifications thereof.SP-#3396686-v1-Lease_Assignment_and_Sublease_Agreements This too, is a good desk reference for anyone who advises clients in the leasing area.

Ok—one more tribute to our beloved Mavs. How many times have we seen a draft or a trade ultimately make a huge difference for a franchise (Does Cowboys/Vikings/Jimmy Johnson/Hershel Walker ring a bell??)http://www.businessinsider.com/sports-chart-of-the-day-mavs-title-can-be-traced-to-one-trade-2011-6?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+businessinsider+%28Business+Insider%29&utm_content=Google+Reader Now, Go Rangers! Have a great week everyone.


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    Steve Watten

    Real Estate News& Views

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