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Subleasing Office Space Facts To Consider
For start-up companies or existing businesses that are in need of cost cutting, subleasing office space may make more sense than signing a standard office lease with the landlord of a commercial property. Subleasing is the process by which an existing tenant of real estate leases out his/her space to another tenant with the landlord’s consent, while maintaining responsibility of the original lease agreement.
Based on when the original lease expires and the desirability of the office space for rent, savings can often range between 15% to 40% under typical vacant office market rates. It would be tough to get say Class A office space at Class B rates, but the savings are clearly there. The rental rate discount isn’t the only appealing part of subleasing, as spaces available for sublet often only have 3 or few years remaining on the original lease term. Flexibility is paramount for start-up companies and other existing businesses in need of some lease term wiggle room.
Companies looking for sublease space may also get lucky and find a sub-lessor willing to leave furniture behind for the sub-lessee to use, which is a huge coup for the new office tenant.
