When Subleasing Your Space is a Good Idea

In this article, you'll learn:

• When to sublease based on space usage and lease length.
• How below-market rents affect subleasing decisions.
• The importance of negotiating with your landlord for possible alternatives.

As you review your company’s commercial real estate holdings, you might find spaces that no longer suit your needs. In those cases, subleasing can help to blunt their impact on your bottom line.

When you sublease out a commercial real estate space, your relationship with your landlord essentially doesn’t change. You remain obligated for the space and enjoy the same rights and responsibilities under your lease. However, instead of using the space yourself or having it sit vacant, you find someone else to occupy it. That subtenant pays you rent, which you then use to help defray some or all of your costs.