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Diversifying your Business By Subletting Your Office Space

In these harsh economic times, business owners must find alternative ways to augment their earnings and support their businesses. Although subletting is an age-long practice, it has become popular over the last decade. Let’s explore the facts, pros, and cons of subletting your workspace. 

 

What is Office Space Subleasing? 

 

Workspace sublease occurs when a tenant leases out part or all of their existing workspace to a third party. The tenant is, however, still obliged to fulfil all the terms of the initial lease agreement between the tenant and the landlord. Contrary to this arrangement, the tenant functions as the landlord while the third party takes up the role of the tenant in another subleasing agreement between the tenant and the third party. In this context, the initial tenant is called the “sublessor” and the “new tenant” or third party is called the “sublessee.” 

 

Why Do People Sublet Office Space?

 

People sublet their workspaces for various reasons. While financial gain is often the motivation for an office space to sublease, other reasons include shared resources, collaborations between compatible businesses, and increasing the organisation’s investment portfolio. 

 

Should I Choose It? 

 

The decision to sublet an office  should be at your discretion, but before you make the decision to or not to, here are factors to consider: 

  • The Legal Perspective—Review the terms of your lease agreement and consult your landlord or property manager on the terms and conditions of a sublease. You can also consult your lawyer for more details of the legal implications and obligations of your sublease. It’s your responsibility to understand the requirements and consequences of your action, so it's important that you do your due diligence. 

  • The Financial Perspective—Subletting can offset some of the rent, but you may still be responsible for any damages or lease violations caused by the subletter, so weigh the pros and cons of the financial responsibilities before subletting business space. 

 

By weighing the pros and cons of these options, you can make an informed decision to inform potential tenants with a “sublease my office space” notice. 

  

What are the Benefits to My Business? 

 

Subleasing can help an organisation reduce rental expenses and generate extra income from renting out excess space to another tenant. It can also provide access to shared facilities and resources that can reduce the cost of running your business day to day. 

 

How Subletting Your Workspace Can Diversify Your Business 

 

An office space sub lease can help you diversify your business in the following ways:  

  • You can generate more revenue if you sublet the area where you work. 

  • You can share the running cost of the workspace and reduce your business expenses.  

  • Sharing your workspace with other businesses can help you network and maximise business opportunities.  

  • You can partner with your subtenant to mitigate the financial risks of long-term lease agreements. 

 

Please note that it may take you a while to reap all the benefits of diversifying your business by subleasing your workspaces. The benefits may also be influenced by external factors like interference from the landlord or property manager. 

 

Full-Time Subletting 

 

This is an action to lease out all or part of a rented property to another tenant for an extended period. This office sublease often happens when the original tenant moves out early but must fulfil the lease or face financial consequences. This sublease can run for over a year, depending on the terms and conditions of the initial tenant’s original contract. 

 

Seasonal Subletting 

 

This is leasing out a property for a specific period. This type of subletting is popular in areas where the demand for workspaces is based on seasonal factors like the weather or academic calendar. A good example is when students sublet a workspace during an academic term to work or do academic tasks. This is a cost-effective option for the students as they only pay rent for a short time. Seasonal subletting allows property owners to maximise their rental income during peak seasons by providing temporary options for people or groups who need short-term subleasing office space. 

 

Weekend Subletting 

 

This means subleasing a property over the weekend. It involves renting out all or part of a work area to a sublessee from Friday evening to Sunday evening. The terms of this agreement are very strict, thus, the sublessee must adhere to the time frame. In this case the sublease usefully occupies the full workspace and may even have access to the facilities in the work area. Individuals who need an office to sublet for temporary or brief business purposes often seek this form of sublet. 

 

Collaborative Subletting 

 

This occurs when individuals or groups jointly sublet a property; thus, each subtenant has its own designated sublease office space. This is very similar to a coworking area. In this context the common interest between the sublessees is the need to rent a workspace, even if it is not necessarily to work together as a team. These individuals share the cost of rent and utilities. 

 

How Do I Find a Workspace to Sublet? 

 

You need to take several steps to find a workspace to sublet. These steps include: 

  • Determine how much space you need based on the size of your staff, equipment, the nature of your work, and the facilities essential for your work. 

  • Conduct an online research of the available workspaces in your area. Look out for the location, size, and facilities. 

  • Contact real estate brokers to discuss suitable options for your business. 

  • Review and negotiate the terms and conditions of the lease agreement. 

 

If these office subletting options are too pricey, consider a coworking area. Coworking spaces allow freelancers, entrepreneurs, teams, and even remote workers to share a l  workspace. You can pay per hour or per day to use a coworking area, so it’s quite an affordable time-bound option. You will also enjoy the benefits of community, networking, and productivity. To find the best coworking spaces, you can look up the available options near you. It’s also important that you gauge the facilities available before making a reservation.