If you find yourself with unused commercial real estate space in the Boston Metro, it may be possible to find a subtenant to help you cover your lease expense. This can be an ideal solution when your current location and lease arrangements otherwise suit your needs.
The first hurdle is determining whether or not your current lease agreement allows a sublease. If your lease does not mention subleasing rights one way or another, do not make assumptions about your ability to sublease. Contact your landlord to confirm subleasing rights and any conditions that apply. Get it in writing. You may wish to obtain the services of professional tenant representation to negotiate a sublease clause.
Once the right to sublease is confirmed, there are several questions to ask yourself:
- How much square footage will you offer?
- Do you anticipate needing any of this space in the foreseeable future?
- Will you offer the use of common areas to your subtenant?
- Will you be offering the use of any furniture or equipment?
- What would be the correct sublease rate, given your own lease costs and the state of the market?
- Who would be your ideal subtenant? (What kind of business is a good fit?)
A word of caution: businesses similar to yours may seem the best fit for a subtenant, but avoid subleasing to direct competitors. You must vet your potential subtenants to ensure they have the financial ability to pay the sublease. You may ask for recent financial statements and references from prior landlords.
You should consult with your attorney to be sure that your sublease agreement is properly worded, and that your subtenant screening criteria is within legal bounds. Your subtenant screening criteria must be applied consistently and objectively. The help of an experienced Boston Metro commercial real estate broker should also be sought. This is a very general overview, and it’s best to obtain professional input at the beginning. We will be happy to help you!
When you are ready to begin, relocate or expand your business, team up with the Jay Nuss Realty Group, LLC! Whether you are thinking of buying, leasing, or investing in Boston Metro commercial real estate, we can help you find the ideal property.
Contact us today for commercial real estate guidance!