4 Things To Consider Before You Sub-Lease.
1. Does your office lease allow you to sub-lease?
Are you are legally entitled to sub-lease space in your office. Most commercial leases contain clauses which relate to sub-leasing. Avoid any sort of ‘informal’ lease and get a proper, legally binding, sub-lease drawn up by a lawyer. Remember, if there are any issues with the sub-lease you, the Lessee, will be ultimately responsible to the Lessor.
2. Is it worthwhile financially to sub-lease, rather than leave the space vacant?
A quick way to find out is to apply the following equation:
Total rental income from sub-lease minus sub-lease legal and building costs times’ length of sub-lease equals net gain/loss. This will give you an approximate idea of whether or not it is financially viable.
3. Get the professionals on board as quickly as possible
It is not simply a case of partitioning off the office space you want to sub-lease. You have to consider entrances and exits, security, access to shared amenities such as bathrooms and kitchen, acoustics, compliance with Council and National Construction Code regulations, etc. Also, modern office buildings host a whole range of sophisticated building systems which will all need to be modified when you create the new sub-tenancy. Call in an expert commercial interior designer or an experienced office fitout company to prepare the sub-lease layout plan and building cost quotation.
4. Think about your future needs.
In business things can change pretty quickly. New customers can be won and suddenly the space you thought was ‘surplus’ is suddenly needed. Deciding on the correct length of the sub-lease term is critical. A shorter sub-lease term will give you greater flexibility, but probably less rent than a longer term. Be careful not to box yourself into a corner for some short term savings!