What is Subleasing?
Subleasing is common in both commercial and residential real estate, and involves the current tenant leasing their rented space, or part of it, to a new tenant.
The new tenant, therefore, is known as the subtenant, and the agreement between the two is known as a sublease. The subtenant pays their rent directly to the original tenant, who then pays the landlord. Subleasing has many advantages, and following the tips below will ensure the process is successful.
Tips for Subleasing
Here are a few tips to consider prior to subleasing commercial real estate:
- Work with a knowledgeable commercial real estate agent who has experience in subleasing agreements and can advise you accordingly.
- Research the area and property extensively before signing. Make sure it will be an excellent fit for your business!
- Consider having an attorney review the sublease in detail to ensure the agreement is fair.
- Don’t be afraid to negotiate the terms of the sublease to better benefit you.
- Interview the tenant to make sure they are someone you can trust.
- Throughout the sublease, communicate frequently with the tenant/landlord about expectations.
Depending on your situation, subleasing might be the best option for your business. Subleasing can broaden opportunities for office locations and is often more cost-effective. Knowing the ins and outs of being a subtenant and following the tips above will help ensure success in your next subleasing endeavor.
Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.
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