Can you sublease or assign a flex space lease in Texas?
Yes, you can sublease or assign a flex space lease in Texas once your landlord gives written consent. Texas Property Code Section 91.005 requires the landlord's prior consent even when your lease says nothing about subleasing, and your lease decides how easy that consent is to get. It usually comes up mid-term, when the bay is full or a buyer for your company wants the space too.
What is the difference between a sublease and an assignment?
An assignment hands your whole lease to a new tenant for the rest of the term, and a sublease rents some or all of your space to someone else while you stay the tenant.
| Sublease | Assignment | |
|---|---|---|
| Who pays the landlord | You, and the subtenant pays you | The new tenant |
| What transfers | Part of the space or part of the term | The whole space for the whole remaining term |
| Landlord consent in Texas | Required | Required |
| Are you still liable? | Yes | Yes, unless the landlord signs a release |
Can your landlord refuse to consent?
Yes, your landlord can refuse unless the lease limits that right. If the lease says consent will not be unreasonably withheld, the landlord needs a business reason, such as thin credit or a use the building cannot take. If it only says consent is required, Texas courts read no general duty of good faith into it, so the landlord has wide room to say no.
A recapture clause lets the landlord end your lease and take the space back when you ask to transfer, and a profit-sharing clause gives the landlord part of any rent above yours.
Does the new tenant's business have to fit your lease and the building?
Yes, a subtenant or assignee takes on your use clause, so their business has to be a use your lease permits and the unit can support. Small-bay transfers stall here, because nobody checks the new use until the paperwork is drafted.
A cabinet shop handing its bay to a fitness studio changes the occupant load, restroom count, and parking. Inside McKinney city limits the new business files its own certificate of occupancy, covered in whether you need a certificate of occupancy for flex space. At Rockwall Flex Park, an ETJ parcel with no city zoning map, the use question runs through the lease and the park's recorded covenants.
We plan both of our parks around eight tenant categories: auto services, distribution and logistics, showroom and creative, food and beverage, light manufacturing, gyms and recreation, e-commerce and tech, and trade contractors. A replacement tenant from that list is an easy conversation. Each Rockwall unit has a 12x12 grade-level door, 3-phase power, individual HVAC, and 18-foot clear height, so a buyer who needs a dock-high door will not find one there.
Our leases run on NNN terms with annual escalations, so write both into any sublease or you pay the difference as your rent rises.
Are you still responsible for the lease after you sublease or assign it?
Yes, you stay liable for the full lease until the landlord releases you in writing. If the new tenant stops paying, the landlord collects from you, and a personal guaranty stays in place too, as covered in whether you need a personal guarantee to lease flex space.
What happens if you move out without subleasing?
You still owe the rent, though Texas requires the landlord to try to re-lease the space. Section 91.006 of the Property Code gives the landlord a duty to mitigate damages when a tenant abandons the premises, and a lease clause waiving that duty is void. You owe rent until a replacement tenant pays, plus any re-leasing costs the lease allows.
What if your business outgrows the unit before the lease ends?
Ask your landlord to move you into a larger unit in the same park before you look for a subtenant. Growth is fast where we build: McKinney added 8,504 residents between July 2024 and July 2025 to reach 236,001, and Celina grew 24.6%, according to the U.S. Census Bureau's Vintage 2025 city and town estimates. Rockwall Flex Park has 30 units at 1,500, 2,000, and 3,000 SF, delivering Summer 2027, and a tenant who outgrows a bay there can [[CONFIRM: ScaleUp policy on moving a tenant into a larger unit in the same park mid-lease]].
What should your lease say about subleasing before you sign?
Get five transfer terms in writing.
- Consent not unreasonably withheld, conditioned, or delayed
- Transfers allowed without consent on a sale of the business or to an affiliate
- No recapture right, or one limited to assigning the whole space
- Profit sharing only after you recover commissions and finish-out costs
- A release for you and your guarantor once an assignee meets a stated financial test
Transfer rights are also on our flex space lease checklist.
FAQ
Can you sublease a commercial space in Texas without the landlord's permission?
No. Texas Property Code Section 91.005 bars a tenant from renting the leasehold to anyone else during the term without the landlord's prior consent, and that applies to commercial leases even when the lease says nothing about subleasing.
Are you still liable for the lease after you assign it to someone else?
Yes, unless the landlord signs a written release. Consenting to an assignment leaves the original tenant liable for the rest of the term, and a personal guaranty stays in place until its own terms release it.
Does a subtenant have to use the space the same way you did?
The subtenant has to fit the use clause in your lease and the permits for the unit. A change in use can require landlord approval, a new certificate of occupancy inside city limits, and building changes such as added restrooms or parking.
Planning for growth before you sign?
Tell us your business and how fast you expect to grow, and we will walk you through the transfer terms in our lease and the unit sizes you can step up into. See the Rockwall and McKinney units and the sizes each park delivers.
Ask about a unit →