VillaLease_Sublease_Industrial — Commercial Real Estate Sublease Decision Application
Review Inputs
An industrial warehouse sublease allows an existing tenant to transfer part or all of its lease obligation to another occupant. The original tenant normally remains liable to the landlord unless the landlord grants a formal release. This calculator estimates the rent recovery and remaining exposure created by a sublease scenario.
| Formula | Purpose |
|---|---|
| Sublease Rent = Original Rent × (1 - Discount) | Estimates achievable sublease rent after market discount. |
| Remaining Obligation = Original Rent × Remaining Months | Calculates total lease liability still owed. |
| Projected Recovery = Sublease Rent × Effective Sublease Months | Calculates income recovered after downtime. |
| Net Exposure = Remaining Obligation - Projected Recovery + Transaction Cost | Calculates unrecovered lease exposure. |
Sublease exposure depends on market rent discount, landlord consent rights, remaining lease term, downtime risk, and transaction costs. A longer remaining lease term increases liability but also provides more recovery opportunity if the space can be re-leased quickly.
| Scenario | Risk Level | Typical Result |
|---|---|---|
| Minimal Discount, Low Downtime | Lower Risk | Higher rent recovery and reduced exposure. |
| Large Discount, Moderate Downtime | Moderate Risk | Partial recovery with meaningful residual liability. |
| No Subtenant Found | High Risk | Tenant remains liable for full lease obligation. |
Sublease: A lease arrangement where the current tenant leases space to a third party.
Sublandlord: The original tenant leasing space to a subtenant.
Subtenant: The replacement occupant taking space from the original tenant.
Consent Right: The landlord approval right governing whether a sublease may proceed.
This application establishes a decision record for evaluating industrial warehouse sublease exposure, rent recovery, lease liability, and transaction risk. The calculator is intended to support tenant-side commercial real estate review before marketing, negotiating, or approving a warehouse sublease transaction.
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