Space within a commercial property that the original tenant (sublessor) rents to a third party (sublessee) under a separate agreement while maintaining obligations under the original lease.
A sublease creates a secondary tenancy relationship where the sublessor remains the primary obligor under the master lease. The sublessee pays rent to the sublessor, not the landlord. CAM obligations typically flow through the master lease, meaning the sublessor is responsible for paying CAM to the landlord and collecting a proportionate share from the sublessee.
Landlords sometimes calculate pro-rata share on the total building GLA while excluding subleased space from the denominator, effectively double-counting the footprint. The sublessor pays full CAM on the original lease, and the sublessee pays again through the sublease, but the landlord collects CAM as if the subleased portion has no occupant.
If you are subleasing space, request the master lease CAM provisions and verify that your sublease CAM obligations match or are capped below the master lease terms. If you are the sublessor, confirm the landlord is not double-counting your space in the denominator calculation.
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Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
