Need office space right now? If you're in desperate need of more room for your work team or need to expand to a new market with very little notice, subleasing could be the way to go. Normally, subleasing will not only mean getting a lease signed quickly but it also usually provides the square footage you require at a discounted price.
Still, for all of its benefits, subleasing commercial space can have some pitfalls. These tips will help you ensure that you get the best deal:
Make Sure the Timing Will Work for You
Normally when you sublease, the tenant whose lease you are assuming has already been in place for some time. As a result, there might not be much time left on their original lease agreement. You won't have any negotiating power with the landlord on your own at the end of the agreement, so if the main tenant decides to relocate, you could be faced with the need to relocate.
For some business situations, the short-term nature of the sublease is ideal. You may only need to be in a certain market for a few months or you might be in the process of building your own office space elsewhere and will be ready to move when the short-term sublease expires. Otherwise, be sure to think long and hard about how willing you are to move out and into another space within a relatively short period of time.
Check the Usage Terms Very Closely
Make sure that you know exactly what the terms are in the primary tenant's lease. Some contracts may prohibit certain types of businesses from moving in due to non-compete agreement in key tenants' clauses. Others might have very specific requirements for how subleased space should be used or how much of a unit can be subleased. You would like to think that the main tenant would carefully review the lease before agreeing to let you sublease; however, it is always best to review the document yourself and ensure that you won't run into any problems moving in.
Make Sure the Landlord Approves
This point piggybacks off of the previous point. Before you pay any money down or sign a contract, make sure that the landlord is aware of the situation by speaking to them directly. In some cases, unscrupulous main tenants may try to secretly take on a subtenant because they have a recapture right in their contracts. Basically, this means that the landlord might be able to take back control of the portion of the space that is being subleased to lease it themselves. You don't want to end up in a situation where you are quoted one price from the tenant and then find out that instead you will have to pay a higher rent price to a landlord.
Get Everything in Writing
Make sure your sublease agreement spells out everything that the main tenant promises you. If the tenant says that you can use their break rooms and bathrooms or share their reception area, get it in writing. You can't afford to rely on verbal promises alone.
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