For tenants and landlords · Published October 6, 2026 · Leung Real Estate Group

Considering a commercial lease transfer: where to start

A business can outgrow its premises, change direction or need less space before its lease ends. Before advertising the space or promising it to another business, work through what you need, what the lease permits and what the landlord needs to assess.

1. Decide what needs to change

Start with the business decision. Do you need to leave completely, share unused space or move while keeping some operations in place? Write down the space you would retain, the access another occupier would need and whether your plans are temporary or permanent. That brief makes the next conversation more useful.

2. Read the lease before choosing a route

Gather the signed lease, amendments, renewals and guarantees. Ask your commercial leasing lawyer to explain the assignment and subletting provisions, consent requirements and any continuing obligations. Do not assume that finding someone to take the space ends your responsibilities.

An assignment transfers the tenant’s lease interest to another party; a sublease creates a separate rental arrangement under the existing lease. Neither should be treated as an automatic release of the original tenant. Ask your lawyer to confirm who remains responsible, including any guarantor, and whether a release is being negotiated. The structure and documents matter more than calling an arrangement a “takeover.” Ask whether making the request could trigger a landlord termination right, and whether renewal options or other rights would carry over.

3. Check whether the replacement business fits

A willing occupier is only the starting point. Consider how the business would use the premises: customer visits, deliveries, equipment, operating hours and alterations. Identify zoning, licensing, building and lease questions before treating the arrangement as workable.

Illustrative example: an office tenant has unused rooms and finds a business interested in them. Before committing to terms, the parties should understand access, washrooms, reception, privacy and any proposed construction. An arrangement that looks simple on a floor plan may need more preparation in practice.

4. Prepare a clear proposal for the landlord

Explain who would occupy the space, the intended use, the area involved and the proposed arrangement. Ask what supporting information is required and how it will be handled, including business and financial information about the proposed occupier and any requested security, subject to the lease. Keep commercially sensitive information limited to the appropriate recipients.

For a landlord, useful questions include whether the proposal fits the building, how shared areas would work and who would be responsible for communication, maintenance and payments. Have the documentation explain the agreed responsibilities clearly.

5. Compare the full cost of the change

Build a working budget for legal review, any permitted fees, alterations, moving, downtime and potential overlap between premises. Include any continuing rent obligations and any shortfall between what you owe and what the new occupier would pay. Separate costs you have confirmed from estimates. Compare the proposal with the practical alternative of remaining in the existing space or discussing another arrangement with the landlord.

6. Plan the handover before committing to a move

Create a checklist for required approvals, signed documents, insurance, utilities, keys, access systems, condition records and any work needed before occupation. Confirm responsibilities and dependencies in writing. Let those requirements guide the schedule rather than assuming a standard completion period.

Start with the lease and a clear brief

A useful first step is to collect your documents and write a short explanation of what you want to change. From there, the leasing and legal conversations can focus on a workable route instead of an assumed solution.

Sources and further reading

General information for commercial premises in Metro Vancouver and the Fraser Valley. Have a commercial leasing lawyer confirm the rules and obligations that apply to your lease before taking action.

Discuss your leasing plans with Christopher Leung and Raymond Leung PREC.