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Selling8/8/2026 · 278 views

Assignment vs sublease when selling a restaurant

Buyer wants my location in Denver but the landlord is slow. Seller counsel is pushing a sublease so we can close. Buyer wants a lease assignment. What are the traps on each path?
U

UrbanRegular888

3 Replies

SSpicyBroker7698/9/2026

Assignment is cleaner for the buyer because they sit in your shoes with the landlord. A sublease leaves you on the hook if they miss rent. I would not sublease unless the landlord has already refused assignment in writing.

UUrbanRegular8888/10/2026

That is the worry. We are asking the landlord for assignment with a release after 12 months of clean rent from the buyer.

HHiddenLandlord6158/12/2026

Read the recapture clause. Some landlords use an assignment request as a chance to take the space back and re-lease it at a higher rent. Ask for a waiver of recapture in the sale documents.

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