Know Your Options

During these difficult times the appeal of an office sublet can be strong.  An office sublet is often perceived as a way to minimize rent expenses, the second largest fixed line item for most companies.  However, more often that not, sublets are not the best solution.  Business centers offer companies a more cost effective alternative with many advantages over sublets. 

Sublet: Pitfalls and disadvantages: Recently we have seen a significant increase in sublet availability almost markets Sublet opportunities come in all sizes and conditions and all have common pitfalls. 

First: Your business is vulnerable to your sub landlord. 

A sub-landlord’s goal is to reduce or eliminate their financial obligation; any amount of money received is a net gain even if it’s less than they are paying to the over-landlord. Assuming your rent would likely be less than the sub-landlord is paying, there would be a gap.  This amount could be small or large but either way it must be paid to prevent default and eviction. Your office space is at risk and out of your control; your sub-landlord is some bankrupt hedge fund.  Welcome to your sublet.  Read more on sublet space versus other office space options.