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Bankruptcy

75% of the Transfer Premium With Nothing Deductible

Five executed leases filed with the SEC share one Article 14 and disagree about what a tenant may subtract before splitting sublease profit with its landlord. Sagimet's May 2026 Foster City lease takes 75% of the Transfer Premium and lists no deductions at all. Obsidian's Cambridge lease allows four. Ethos's San Francisco lease allows two. In August 2018 Global Blood Therapeutics bought one parenthetical, 23 words long, that added the unamortized cost of its own build-out to the list, and paid for it by letting the landlord ignore five months of free rent. Vacant sublease space is down 15.4% year over year to 95.6 million square feet, and in San Francisco sublease asking rent is $52.34 against a direct class A label of $77.89, so for most tenants the premium is zero and the clause still costs a $1,500 review fee and a CPA certification.

Who Pays to Clear a Warehouse After a Bankrupt Tenant Rejects the Lease?

American Tire Distributors left forklifts, racks, and a 55-gallon drum of hazardous material in two Carolina distribution centers. The landlord spent almost $125,000 clearing them out and asked the bankruptcy estate to pay it as an administrative expense. A Delaware judge said the bill is a general unsecured claim, because a return-condition obligation is a rejection damages claim no matter when the tenant walked out.