In a sublease with a positive leasehold, who normally benefits from the excess rent?

In a sublease with a positive leasehold, the sublessor typically benefits from the excess rent. A positive leasehold occurs when the rent that the sublessee is paying exceeds the rent that the sublessor is obligated to pay to the original lessor. In this scenario, the sublessor has the opportunity to profit from the difference between these two amounts.

When a sublessor charges a higher rent than what is paid on the original lease, they retain this excess as income. It is a common practice in real estate leasing, allowing individuals or businesses that hold a lease to monetize their leasehold interest when they can lease it for a higher rate than their obligations dictate.

This dynamic is particularly advantageous to the sublessor, as they can generate revenue without incurring additional costs related to the property. Conversely, the sublessee is not in position to benefit from this situation, as they are simply paying rent according to their agreement with the sublessor. The lessor involved does not directly benefit from the excess rent unless stipulated in the original lease agreement. Brokers typically facilitate the transaction but do not receive the financial benefit from the excess rent itself; their compensation structure typically relies on commissions or fees from the transaction completed.