If you’re a small business owner in the Boston Metro, finding the ideal office location for your growing business can pose a challenge. While co-working spaces are an option, as discussed in our prior blog, they’re not suitable for all situations. In some instances, subleasing could be the better solution. Here are some points to keep in mind, as published by Entrepreneur magazine, along with insights of our own.
When contractually allowed by the landlord, a sublease lets an existing commercial tenant lease out their unused space to a new tenant. The landlord has the right to review the new tenant applying for the sublease, and the right to accept or reject their application.
The advantage of a sublease is that it may offer a lower cost-per-square-foot while providing all the amenities of a larger, upscale office building that may otherwise be unfeasible for a small business. Subleases generally offer shorter lease periods, making them desirable by businesses that have difficulty predicting their future needs.
Subleases generally provide more privacy than what a co-working space would offer. Subleases may also permit modification or build-out of the leased area, whereas a co-working space would not.
The disadvantages of a sublease can include the time it takes to find an appropriate situation, and the time it takes for a landlord to approve the sublease. Since the landlord is already collecting full rent from the current tenant, he or she may not have any sense of urgency for the deal.
A sublease is also based on the relative merits and flaws of the original lease between the primary tenant and the landlord. Negotiating a sublease means doing your homework on the existing lease contract. Due diligence is essential.
Last but not least, there can be unexpected snags, liabilities and expenses involved in a sublease. Disputes can arise over common areas or parking spaces. Any damages caused by the primary tenant prior to your occupancy could become a point of contention. And for better or worse, the primary tenant is a part of your life, at least contractually, for the duration of the sublease.
This is a very broad overview of subleases, and it cannot take into account all the individualized factors that are involved in your specific business needs. To find the ideal property for your Boston Metro business, work with an experienced commercial real estate broker at Jay Nuss Realty Group, LLC!
Whether you are thinking of buying or leasing Boston Metro commercial real estate, we can help you. Please contact us today for expert guidance!