Commercial Subleasing - Pros and Cons of Subleasing Commercial Spaces

By Lahle Wolfe

Job Vacancy Indonesia, Employee, Vacancy 

Cons of Subleasing Commercial Spaces

The disadvantages of subleasing are mostly logistical (how you can use the property may be limited) and legal disadvantages if you do have problems with either the sublessor or the sublessor’s landlord. To minimize your own legal exposure, and protect rights as a sublessee, be sure to have an attorney review your sublease and the original lease before signing anything.

1. Unfavorable Lease Terms Can Be Passed Along to You: If the sublessor negotiated a “bad” deal with their landlord, they may try to pass certain fees and higher rent along to you. Be sure to read both the sublease and original lease and compare your sublease terms to other comparable rents and offers in similar spaces. (This is one reason why you should look at as many other spaces as possible before deciding on any particular space).
2. Default by Sublessor: If your sublessor defaults, it could affect your sublease as well. You can address this by including in your sublease, rights to recover costs and damages if you are evicted because of the sublessor defaulting (for example, you pay the sublessor rent, but the sublessor does not pay their landlord).
3. Not Your Own Private Space: This could affect exterior and interior signs, advertising, or present a “smaller business” feel to clients who come to your office. For this reason, it is helpful to sublease from someone in the same profession. For example, an attorney should first seek to sublease from another attorney if they are sharing space. By teaming with other similar professions, it can help dispel the small business atmosphere.
4. Delays in Maintenance Services: If you need repairs to the property, or other services provided by the landlord, you may still have to go through the sublessor for remedy. This can cause delays and headaches in problems being addressed and can complicate legal remedies for unresolved problems.
5. Limited "Nesting" Options: You are at the mercy and decorating tastes of your sublessor.