LONG ISLAND’S LOW-COST OFFICE BUILDINGS
Office Subleases: What You Need to Know
Subleasing office space is akin to finding a suit or dress on the “sales rack” and discovering it fits perfectly! Not only have you solved an immediate problem, but you saved a ton of money.
Like the sales rack, many office subleases are significantly “below market,” and come with the opportunity of moving into a class-A office building at a fraction of what the other tenants are paying. Furthermore, many subleases are generally pre-wired, include furnishings and telephone systems.
Generally, overtenants soon learn their sublease’s market value is disproportionate to the time remaining on the lease. Accordingly, overtenants usually end up unloading their office space at 60%, of their aggregate rent.
Then again, subleases are not all “peaches and cream.” Subleases can be complicated because they are contracts wrapped within another contract, i.e., the overlease. For example, subtenants must abide by the terms of the overlease, but the overtenant retains the contractual relationship with the landlord. If the subtenant has a problem with the premises, building services, parking, etc., it is the overtenant that must speak to the landlord. Accordingly, be sure to have an expert to help you.