Small Bay Units in Scarborough, ON

What is a sublease in industrial real estate?

A sublease in industrial real estate is an arrangement where the original tenant (the sublandlord) rents all or part of their leased space to a new occupant (the subtenant) for a period within the remaining term of the original lease. The original tenant remains liable to the landlord under the head lease; the subtenant pays rent to the original tenant, not directly to the landlord. Subleases are common in the GTA industrial market when tenants need to downsize, relocate, or shed excess space before their lease expires — and typically offer subtenants a price discount of 10–25% below comparable direct lease rates.