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Understanding How a Commercial Lease Assignment Works

Understanding How a Commercial Lease Assignment Works

Author: Victor E. KinonDate: August 24, 2021

While commercial landlords are often reluctant to consent to a lease assignment, COVID-19 has changed everything. With so many businesses struggling to stay afloat, landlords are more willing to consider the assignment of a lease to add to the prospect that rent payments continue and buildings remain occupied.

In basic terms, a lease assignment occurs when the current tenant to an existing lease agreement (known as the "assignor") assigns the lease rights and obligations to a third party (known as the "assignee"). A lease assignment should not be confused with a sublease, in which the existing tenant transfers by a sublease document some or all of their interest, and leased space, to a third party, known as the “subtenant” (or “sublessee”). (You can find a discussion of subleases here.)

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