Tenant lease ranks below the landlord's mortgage in the title hierarchy.

  • Tenant lease ranks below the landlord's mortgage in the title hierarchy.
  • Subordination without an SNDA is dangerous: a foreclosure could wipe out the lease.

Subordination

Legal · US

Short definition

Tenant lease ranks below the landlord's mortgage in the title hierarchy.

Full definition

Subordination without an SNDA is dangerous: a foreclosure could wipe out the lease. Always negotiate SNDA at lease signing — not when the loan refinances.

Why this matters for Class A leasing

Subordination is part of the legal vocabulary that institutional Class A occupiers, landlords, and advisers use across US markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the US definition alongside the global standard so cross-border occupiers can translate quickly.