Commercial Subleases: What to Know
As an energetic startup, small business, solopreneur, solo practitioner, freelancer, or independent contractor, you know how important it is to have office space that meets your needs, creates a great first impression on clients, employees, investors, and other stakeholders, and sparks productivity and innovation. You also know how expensive it is and how many headaches are associated with finding and securing the right space. If you’re looking into commercial subleases, start here. Let’s explore your options so you can get to work.
Exploring Commercial Subleases
When you are looking for suitable spaces, one thing becomes abundantly clear: they’re expensive, they often don’t fit your needs exactly, and they can be a huge hassle in terms of budgets, commutes, and your business’s ability to move agilely towards opportunity.
Commercial subleases are a bit different. Here, you rent unused space in a building from a tenant instead of the owner. The tenant then receives revenue (your sublease fees!) in order to cover their own rent until the lease expires. At this point, you often have the option to lease the property directly. In some cases, a business may own a large property; if they need to downsize, they can rent a portion of the building to other companies or professionals.
Commercial subleases can offer a number of benefits. The current tenant, for example, can significantly reduce their monthly costs and avoid the often-excessive fees associated with terminating a lease early. How does it benefit the subletting tenant? They can find a space that is affordable, and terms are often much more flexible than those of standard commercial leases. This can be a solution for businesses that only need to occupy a space for a short period of time.
Further, subletting tenants can negotiate to have access to shared space and equipment included in the agreement. From conference rooms and kitchens to copy machines and printers, you may be able to cross these items off your list of expenses.
However, there are some drawbacks to consider. You won’t be able to modify the space. You take it as-is and if it isn’t quite right, you’re “stuck” with it in the short-term at least. Another big issue is that you are bound by both the sublessor’s agreement and the original tenant’s agreement with the landlord. It can add another layer of complexity; make sure you read both thoroughly before signing your contract.
Keep in mind that if the original tenant defaults on their lease, the landlord usually has the right to evict you, even if you are a model tenant! They may also void your sublease if they do not agree to the terms or have issues with the type of business you run. You always question, “Is my office space – my business’s home – as secure as I need it to be?”
Affordable Alternatives: Flexible Leases in Downtown Tampa
If the risks of a commercial sublease outweighs the benefits, there are alternative solutions to explore. Explore flexible leases in Downtown Tampa with Office Evolution. Our Harbour Bay location offers the best of the best when it comes to affordability, flexibility, and security. Further, office space in this area is highly sought after, so you are sure to make a lasting impact on your customers, employees, investors, and other key stakeholders.
Contact Office Evolution today to learn more.