When start-ups get too large to continue operating from a garage or home office, they need to search for outside office space. However, they may not yet have the budget for a private office.
If you’ve found yourself in this situation, you have a couple different options. One option is renting a portion of another company’s office space. This is known as office subletting, and it may be a good choice for your company’s current needs. Before you start searching for commercial spaces, here’s what you need to know about office sublets.
Subleased Spaces Are Usually Finished
Since subleased spaces are part of a larger office, they’re usually already finished. This means you don’t need to worry about having the space upgraded to suit your needs.
The space may even be furnished. The original renter of the office space may have already furnished the whole space with desks, chairs, computers, and other useful office items. This may be included in the price of the sublet. This means you can simply move in and get to work as soon as you sign the contract.
Subleased Offices May Include Free Amenities
Some office amenities are typically installed throughout the whole space, not just in some areas. Alarm systems are an example. If the entire office is already protected by an alarm system, the area you’re subletting will be covered, too. You may not have to pay anything extra for this.
Sometimes, amenities like phone lines or internet access could be included in a sublet, too. If amenities aren’t available for free, they may be discounted since they’re already installed.
Office Sublets May Provide Access to Common Areas
While you may only be renting a small portion of a larger space, you could be allowed to share access to other areas of the office. Your company could have access to common areas like break rooms, kitchens, bathrooms, conference rooms, or the reception desk.
Of course, you’ll have to share these spaces with the original tenant of the space. If you were to rent your own private space, you might not be able to afford access to such a wide range of common areas.
It Takes Time to Find a Sublease
Finding your own private office space can be time-consuming, and the same is true for finding a space to sublease. You’ll need to search potential subleasing spaces in your area and determine whether or not they meet your needs. It can take at least three months to close on a sublease after you start your search.
Sometimes, sublease arrangements can get delayed by the landlord. That’s because the sublandlord needs to get permission from the landlord to sublet part of the space. Since the landlord is already receiving rent for the space, there isn’t much incentive to speed up the process.
Subleasing May Include Flexible Terms
When you choose to sublet an office space, you’re entering into an existing contract. The landlord and the current renter already have a rental agreement. Any subleasing agreement will have to work off the original contract. Since you had no part in negotiating the original contract, there could be some terms you’re not comfortable with. There’s no guarantee that the current renter will be able to amend the current agreement to suit your needs, even if they wanted to do so.
Office sublets are a good choice for some growing companies. Before you enter into a subleasing relationship, be sure to carefully consider the arrangement. If you don’t think a sublet is the right choice for you, consider using a coworking space or renting your own private office.