Commercial Lease Assignments and Subleases in a Volatile Market: Key Considerations, Potential Pitfalls
Weighing Risks v. Benefits; Clearly Defining Future Rights in the Master Lease; Drafting Strategies for Subleases/Assignments
About the Course
Introduction
This CLE webinar will provide key considerations for counsel to landlords and tenants when drafting subleasing and assignment clauses in the master lease that will govern their clients' future rights and obligations under subsequent agreements. The panel will also discuss the benefits and risks of assignment and subleasing, especially in a volatile market, and provide best practices for drafting subleases and/or assignment agreements.
Description
In a volatile commercial real estate market, counsel to parties negotiating long-term commercial leases should pay close attention to the assignment and subleasing clauses in the master lease in case the tenant's business needs change—where they may no longer need the amount of space they've leased or may not be able to afford to pay for the space—while still tied to the lease. Subleasing or assigning a lease may provide the best options for both the landlord and tenant.
Counsel and their clients run into trouble when they rely on boilerplate language for subleasing or assignment clauses in the master lease that governs the parties' future rights to do either. Therefore, counsel for all parties should understand the key differences between subleasing and assignment, as well as drafting considerations and legal pitfalls, so they can best protect their clients' future interests.
When later making the decision whether to sublease or assign a commercial lease, landlords, tenants, subtenants, and/or assignees, governed by the parameters of the master lease, must analyze the advantages and risks of both options while understanding there are implications for all parties involved under tax and bankruptcy codes, contract law, landlord-tenant law, and financial reporting requirements.
Listen as our authoritative panel discusses key considerations for landlords and tenants when drafting subleasing and assignment clauses in the master lease. The panel will also review the benefits and risks of commercial lease assignments and subleases and provide additional drafting strategies for subleases and/or assignment agreements
Presented By
Mr. Rivera’s practice focuses on real property and corporate law, representing numerous developers, investment companies, business owners, municipalities, lenders, retailers and management companies throughout the United States and Latin America. Since 1981, he has handled a broad range of matters involving the development and financing of various classes of commercial real estate including retail, office, industrial, multifamily and mixed-use properties. Mr. Rivera’s expertise lies in acquisition and sales, leasing, contract/lease enforcement and evictions, loan transactions, foreclosures and workouts.
Mr. Weltman is a shareholder and a member of the firm's Litigation Department. He frequently works with the firm’s Commercial Real Estate, Corporate Divorce / Business & Shareholder Disputes, Franchise Law, Construction Law, and Hospitality Practice Groups as part of his wide-reaching litigation practice focuses on finding successful resolutions to his clients' legal issues. Mr. Weltman's hands-on commercial litigation experience includes handling all sorts of complex commercial and business litigation, employment litigation, Wage Act litigation, probate litigation, real estate disputes, construction matters, civil rights litigation – including ADA accessibility, accommodation issues, and high impact class action work – municipal disputes, appellate advocacy, and other tort-based litigation matters.
Ms. Zana is co-chair of Shipman's Real Estate, Environmental, Energy, Land Use and Construction Department, and a partner in a national real estate practice that includes New York-trained lawyers who practiced at large national and international law firms before joining Shipman. She is able to deliver incisive, strategic and efficient counsel to clients at a significantly lower cost than many local and national competitors. Ms. Zana's commercial real estate clients are situated throughout the United States with a focus on New York’s tri-state area, and include private developers, public companies, institutional owners, banks and lessees of millions of square feet of real estate across the country in the luxury residential, mixed-use, retail, commercial office, data centers and colocation facilities, hotel and hospitality, health care and higher education industries.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Tuesday, September 22, 2026
- schedule
1:00 PM ET/10:00 AM PT
I. Assignment vs. subleasing
A. Key differences
B. Risks and benefits for landlords
C. Risks and benefits for tenants
D. Risks and benefits for assignees and subtenants
II. Master lease drafting considerations and pitfalls
A. Assignment clauses
B. Sublease clauses
C. State law considerations
D. Contemplating interaction with future assignment/sublease agreements
III. Sublease drafting considerations and pitfalls
IV. Assignment agreement drafting considerations and pitfalls
The panel will review these and other important issues:
- What are the key considerations and pitfalls when drafting subleasing and assignment clauses in a master lease?
- How do the subleasing and assignment terms in the master lease affect future sublease or assignment agreements?
- What are the benefits and risks of assignment as compared to subleasing for landlords, tenants, subtenants, and assignees?
- What are key considerations and pitfalls when drafting a sublease and/or assignment agreement?
Related Courses
Commercial Lease Assignments and Subleases in a Volatile Market: Key Considerations, Potential Pitfalls
Tuesday, September 22, 2026
1:00 PM ET/10:00 AM PT
