An assignment is the transfer of a tenant’s lease rights and obligations to another party, usually subject to landlord consent.
An assignment hands the tenant's position in the lease to a new party, who then steps into the tenant's obligations. Most leases require landlord consent, and for investors the key question is whether the original tenant or guarantor stays liable after the assignment. If the original party remains on the hook, the credit behind the rent may be unchanged. If it is released, the income now depends on the new tenant's credit. Review the assignment and subletting language closely, particularly for franchise operators.