Do you need to sublease your commercial business premises? At some point in time, business owners have found ourselves with surplus commercial space that we lease. Space that we’re paying for but isn’t being used and therefore is wasted money. It could be that you initially leased more space than you required, or perhaps you’ve moved staff offsite. Whatever the reason, choosing to sublease your whole site or part of your site can be confusing and costly if you don’t get it right the first time.
Here are some tips to help you sublease your commercial property.
Not all commercial property leases will allow you to sublease part or all of the property and you will most likely need your landlord’s prior written consent before you can do so.
Consider using a leasing agent.
Whilst they do charge a fee for this service, they are more than likely going to have potential tenants ready to take the property and will be able to negotiate and sign up the lease for you. If the area you have available to sublease is small or only for a short period of time, using an agent may not be the way to go and you could look at other avenues of advertising such as social media, online business forums, local newspaper etc.
Speak to your Landlord
They may surprise you and could possibly release you from your lease early or may know of someone wanting to lease the property. You will also require their written approval for any sub-tenant (unless you were able to negotiate this out of the lease at the start).
Understand your responsibilities
Whilst you may need the rent money, be picky when it comes to choosing a subtenant. Remember, you may be ‘in business’ with them for years to come so you want to ensure that they can not only pay the rent, but that they are reputable. This is even more important if you will be sharing the property with them – will their business have a negative or positive impact on your brand?
It’s best to ensure that you have the provision to sublease the property when you first sign the lease, this will alleviate any major issues further down the track. If you need to exit your lease and are considering sub-leasing your property, contact Eve Property Group and we can provide you with professional advice and realistic options for you.