let’s say your company has just completed a reorganization, recently acquired a competitor or is experiencing exponential growth, and one of your facilities is no longer functional for your needs. as commercial real estate professionals, we are often tasked with marketing sublease space and helping our clients identify the best possible outcome for their excess space. the ideal scenario is to sublease to a quality company that will match the remaining lease term. we recently completed a successful sublease with a company that had committed to a space they couldn’t fully use. the client engaged us to market 135,000 square feet (sf) of warehouse space for sublease on a 10-year lease term, with an early termination option at five years.
it took some time, but we procured a long-term tenant for the space, with our client paying the landlord just two months of rent to terminate the lease. although the sublease is subordinate to the master lease and your company, as the tenant, is still on the hook for the lease, any building owner will have a hard time swapping investment-grade credit for a group that may not be able to keep up with the building expenses. hopefully the tenant has negotiated some sort of profit share, such as a 50/50 split with the landlord; otherwise, there is no motivation to increase the rent beyond the master lease. be sure to find a commercial real estate broker who is a local expert and has experience with subleases in your area. then, throughout the process, you and your broker should err on the side of over-communication among the landlord, tenant and subtenant to ensure a successful outcome.
a sublease occurs when the original owner does not lease the premises to you, but there is another person or entity in between you and the landlord. subleasing commercial space can be very advantageous for a smaller business or one that is just starting out. often, sublease space is more a commercial sublease is a stand-alone agreement between a tenant who already holds a lease to a commercial property (sublessor) and another, sublease commercial space near me, sublease commercial space near me, commercial sublease california, sublease commercial agreement, subletting commercial property without consent.
a commercial sublease is an agreement between a tenant currently leasing a property, a new tenant looking for space, and the property owner. when you sublease your space you are the sublessor (or sublandlord) and your new tenant is the sublessee (or subtenant). a subtenant, however, is not a party to the master lease—the master lease is the document between the landlord and the tenant; the sublease is the document as commercial real estate professionals, we are often tasked with marketing sublease space and helping our clients identify the best possible the subtenant pays rent to the tenant who signed the original lease and only rents the property (either a portion, or the entire rental space) until the end of, pros and cons of subleasing office space, commercial sublease agreement pdf, free commercial sublease agreement, subletting vs subleasing.
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