What is Assignment and Subletting?

Definition

Assignment and subletting clauses govern a tenant's right to transfer their lease to another party. An assignment transfers the entire lease interest to a new tenant, while a sublease allows the original tenant to lease part or all of their space to a subtenant while retaining their obligations to the landlord. For CAM reconciliation, assignments require updating the tenant record and billing configuration to reflect the new occupant, while subleases typically do not change the CAM billing relationship because the original tenant remains responsible to the landlord. However, if the sublease involves a partial space subdivision, it may affect how above-standard expenses are allocated. Landlord consent is almost always required, and lease assignment provisions may include profit-sharing requirements on sublease income.