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Commercial Sublease: What, Why, and How

Companies that are in search of commercial space in which to either start a new company or expand an existing business would do well to consider the advantages of a commercial sublease. The commercial sublease is basically renting the space from someone who is currently renting the space from the landlord. There are various reasons why a company would want to sublet their current commercial space, and a business that is looking to assume a sublease should make sure to determine what the exact reasons are for the company subleasing their space.

Why Sublet a Commercial Property?

One of the greatest advantages of subleasing commercial property is that the current occupant is usually in a flexible position to negotiate. Oftentimes, a business might be in a position where they need to expand their own operations into a larger space, or they might have too much space and have the ability to sublet some of it out to help defray monthly expenses. Regardless of the conditions that lead to the sublease, the point is that many of these companies will be willing to negotiate an excellent monthly rate in order to have someone help defray the financial obligations of their rental space.

Ideal for Small Companies

A commercial sublease is an ideal situation for a small company that is just starting out or one that does not require a large amount of space. Sometimes, existing businesses have portions of their rental property that are simply not used, and this space can often be sublet out to a small company to help offset some of the larger company's monthly expenses.

In this type of scenario, it is much easier for the smaller company to qualify for the sublease than if they had to go out on their own and acquire an exclusive commercial lease agreement. There is little risk involved when a large company subleases out a small portion of their space, so the criteria for acquiring the sublease is easier for a new company to pass.

The Value of a Commercial Sublease

A commercial sublease agreement is also less complicated and more straightforward than a standard commercial lease agreement, yet it is still a legally binding contract that protects all the involved parties. Subleased commercial space also has the potential benefit of already having amenities such as internet access included in the space, as well as possible access to common areas such as bathrooms, conference areas, and even storage space. Some of these items might add additional costs to the lease, but this can be negotiated as well.

Subleased commercial space is an excellent way for a business to acquire the area they need at a reduced price. It gives even the smallest business a way in and allows them to start as small as they want and still offers the flexibility to expand as needed. Many sublease spaces are turnkey ready and available for a new company to move in and quickly get up to operational speed. The commercial sublease is definitely a viable alternative for any company to consider when searching for space to start or expand their business.

How to Create a Commercial Sublease Agreement

Use our commercial sublease agreement template to create, download, and print your custom sublease agreement online in minutes.