Your Actual Exposure: $195,000

A $4,000/mo general lease doesn't create $4,000/mo in liability. It creates $195,000 in total exposure across rent, personal guaranty, restoration, and every other clause your landlord drafted to protect themselves — not you.

Where $195,000 Comes From

Remaining Rent$96,000
Personal Guaranty$96,000
Restoration$20,000
CAM Charges$12,000
Early Termination$24,000
Legal Fees$15,000
Holdover$24,000
Total Exposure$195,000

What Most People Miss

The surviving guaranty. When you assign your lease, your personal guaranty doesn't automatically terminate. Without an explicit guaranty release from the landlord, you remain personally liable for obligations under the assigned lease.

Key Risks in This Scenario

  • Original guarantor may remain liable even after assignment without explicit release
  • Assignment triggers landlord right to review and potentially renegotiate terms
  • Change of control provisions can inadvertently trigger assignment requirements

How to Reduce Your Exposure

  • Require a written guaranty release from the landlord as a condition of assignment closing
  • Negotiate a permitted assignment provision for standard business transactions that doesn't require consent

Frequently Asked Questions

What is the difference between sublease and assignment?
Assignment transfers your full lease position to the assignee — you're no longer the tenant. Sublease creates a new landlord-tenant relationship between you and the subtenant, while your lease with the master landlord continues.
Can a landlord unreasonably refuse lease assignment?
Depends on the lease language. Some leases require 'reasonable' consent, which can be enforced. Many leases give the landlord absolute discretion. Negotiate 'not to be unreasonably withheld, conditioned or delayed' upfront.
What triggers an assignment requirement?
Beyond direct transfers, some leases define 'assignment' to include change of control (sale of 50%+ of ownership), merger, reorganization, or even key-person death. Review the definition carefully.
How long does commercial lease assignment take?
60-90 days is typical with a cooperative landlord. Start the process early — waiting until closing day of a business sale is too late.
Do I need an attorney for lease assignment?
Yes. Assignment involves multiple parties, potential surviving liability, and new lease terms. A real estate attorney at $2,000-$5,000 protects against $96,000+ in continuing personal exposure.