Pros and Cons to Consider Before Subleasing Office Space

  • Potentially lower cost space
  • Sometimes furniture systems, business equipment, phone systems available at greatly discounted price
  • Speed of process – possible to move in literally as fast as paperwork is completed
  • Lease already negotiated (sublease terms need not be addressed). If done by credit tenants or in softer market, may provide advantageous terms and conditions to subtenant
  • Possible great parking and signage rights
  • Potentially less up-front financial requirements from a sublessor versus an institutional Landlord
  • Lease terms inflexible, what you see is usually what you get
  • Options usually not transferable
  • Three parties involved, the Sublessor, Sublessee, and the Landlord. Allow time for this
  • If profit goes to Sublessor, lessor might be resentful
  • As-is configuration, no or limited TI’s are the norm
  • Short-term sublease might result in huge sticker-shock when when it time to get a new direct lease

Jeff Weil