Why Startups Should Embrace Subleasing

13 January 2017
 Categories: Law, Blog


Subleasing a business space may not give you as much control as leasing your own place, but it does have its benefits. For example, if you are launching a startup, you can enjoy the following benefits by using a subleased space:

They Are Relatively Cheap

When you are just starting out, you may not have enough funds in your account to lease your own place. Even if you have the funds, you should use them carefully since you can never be too sure on how the market will react to your offers, and there will be many unexpected expenditures to pay for in these initial stages. Subleasing can help you out with this since subleases are usually relatively cheaper than full leases.

They Are Ready For Use

Most businesses find that they have to upgrade or finish commercial places before moving in. For example, if you are running a fully-fledged business, you aren't likely to find a commercial place with the exact number of offices you want, the electrical outlets in your preferred locations, and with the right paint color. In that case, you have to upgrade the place to suit your business. Unfortunately, this costs money and time – two things you may not have in abundance while starting a business. However, when such an established business has upgraded an open hall into a proper business, you can sublet it and avoid all the hassles.

Access to Cheap or Free Amenities

Subleased spaces often have full amenities that you may take advantage of for free or at a small fee. For example, a small place located in a big building may enjoy the security services of the main building, such as restricted access, video surveillance, and alarm systems. However, when you rent your own space, you may have to install such amenities at your own cost.

Ease of Scaling Up Or Down

Lastly, you will find it much easier and cheaper to scale down or up your operations if you are operating in a subleased space than if you have a full lease. For example, terminating a sublease may be easier than terminating a full lease. As explained above, subleased spaces tend to be cheaper, which means the penalties for rescinding a lease may not be exorbitant. 

Leasing or subleasing contracts often contain language that is difficult to understand. You don't want to run halfway through your sublease only to realize that you don't have the rights you imagined. Prevent such disappointment by having a real estate lawyer, such as John M. Ogden, help you with the leasing contract.