Filed in: Subleasing Commercial Spaces
Pros of Subleasing Commercial Spaces
There are many advantages of subleasing commercial spaces. But to get the most out of subleasing, be sure you shop around first, never accept a first offer (always try to negotiate a better deal), and make sure you carefully review both the sublease and the sublessor’s original lease. A tenant (the sublessor) who will not show you the original lease should not be trusted.
- Cheaper and Easier to Obtain: Subleased spaces are often more affordable and it may be easier to qualify for a sublease than for an exclusive lease.
- You Can Start Small: You can rent just the space you need. If your business is small and you only need several hundred square feet, you will find a lot more options in subleasing markets.
- Fewer "Strings Attached:" Subleases are generally simpler, and more straightforward than other complicated types of commercial leases. However, subleases are still binding legal documents and are also contingent on the original lease. You should give strong consideration to having an attorney or trusted realtor view the sublessor's lease, as well as the sublease before signing.
- Turnkey Ready: Most subleased spaces are already finished so you will not have to worry about upgrades and build-outs.
- Access to Common Areas: Many subleased spaces provide access to reception areas, break rooms, conference rooms, storage, and other shared spaces at a reduced cost, or, in some cases, even for free.
- Free Amenities: Since subleased spaces are part of a bigger space, you may not have to pay for alarm systems or Internet access if the space is already wired for these things.
- Option to Take Entire Space: If the sublessor wants to move before their lease is up, they may be able to sublease the entire space to you. This can make obtaining larger spaces easier to qualify for if you have an existing financial relationship with a sublessor, and should you wish to keep the space after the original lease has expired, you may be in a better position to negotiate your own lease with the actual landlord.
- No CAM or Other Unpredictable Fees: In a typical sublease, you are responsible for repairing damages you cause, but your sublessor (or their landlord) is usually required to repair and maintain common areas. In most cases, subleases are fully serviced leases with a flat monthly rent. This can make budgeting for rent payments easier.
- Networking and Social Opportunities: If you work alone, you may benefit from subleasing space if you team with someone in a similar profession. You may get business or client referrals, or just have a new peer/friend to talk industry with, and share resources.
- Access to Administrative Support: If the space is shared, and you are not in the office all day, other sublessees or employees of the sublessor may be able to answer your phones, receive mail and packages, or greet unexpected visitors. If you ask for these services you may need to pay for them, but you won’t have to be tied to the office all day just to get the mail.
- Access to Services: Many sublessees are able to negotiate leases that allow them access to the sublessor's FAX and photocopying machines, or other office technology so they have fewer pieces of equipment to purchase.
Part 2: Cons of Commercial Subleases
