How and Why to Sublease Your Office Space

Many business owners are under the false impression that they need to have a large office space. This isn’t always necessary. In fact, there are several reasons why you might consider subleasing your office from a reputable company like CMPND| Offices, Coworking in Journal Square, Jersey City. 

Below are reasons why subleasing is worthwhile and how it might be the best decision for your company.

What Is a Sublease?

A sublease is a contract between you and another company that allows them to rent your office for a few months, or perhaps indefinitely. This means they will be able to use it at any time during the specified period that you agreed on.

This type of agreement might work out very well if your business needs a smaller space than you currently have. Although you’ll be making less money than if they were to rent out your entire office, it also means that your business can save on overhead costs.

Also, this allows the other company to have access to all the perks that come with office space, such as internet and access to conference rooms.

Why Would You Want to Sublease Your Office Space?

There are many reasons why you might want to opt for a sublease instead of having your entire office. The biggest and best reason is the flexibility with the company’s finances and property.

For example, you might only need office space during the months where you are most active, which are typically September through April. This is a popular time for businesses to sublease their property because they have more demand than usual and can make money off the deal. 

How to Find and Execute a Successful Sublease

If you believe that a sublease might be the right decision for your business, it’s time to find one and sign on. This is where things can get really complicated if you don’t know what to look for or how to go about finding them. So before looking into anything else, make sure you understand these tips first:

Make sure it is someone reputable – It’s best to find a company that has been in business for at least three years and has references you can contact immediately.

Request the contract before agreeing to anything – This will give you time to read through everything carefully. If there are terms or aspects of their sublease that bother you, it might help to be honest about it. They might be willing to make changes if they know this will help them get a signed agreement from you.

Exchange sublease contracts – Do this at least a month before the start date. This will give you ample time to go over all of your responsibilities and theirs, as well as getting everything signed on their end.

Be honest – Tell the other party everything they need to know, including how many people you will be employing. If there are going to be more than expected, the lease might not work out if the office space is limited.

There are plenty of companies out there who would love nothing more than a short-term rental agreement with you, so finding someone shouldn’t be too difficult. And if you do your homework ahead of time, this could be a mutually beneficial deal that will help both you and the company renting your space.

Things You Need to Know Before Signing on the Dotted Line

There are many things you need to consider before signing on the dotted line with someone else. This is a binding document, which means it’s important that both parties know exactly what they’re agreeing to and abide by its terms for as long as necessary.

Ideally, make sure you have a clause that states the time frame of your sublease. This needs to be very specific, so neither party has any confusion about when they need to vacate the property and return it to you.

For instance, you might want to state that they can rent your space until September 30th of this year if possible. This will give them plenty of time to find another property before the end of summer and should be enough time for both parties to plan without unnecessary stress or confusion.

You also need a clause about what happens when the sublease doesn’t work out. This is important because there might be a time where the company renting your space has to suspend or cancel their contract, leaving you without an office for that period until the real estate owner finds someone else who can take over. It’s advised to be conscious and keen on all these factors before finalizing any sublease agreements.