Four Tips for Subleasing Office Space Those offices you're paying for and not using can bring in some extra cash. But being a landlord can be tricky business.
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Those offices you're paying for and not using can bring in some extra cash. But being a landlord can be tricky business, if it's allowed at all.
For companies that have downsized or find themselves with more space than they immediately need, subleasing that extra square footage might make sense. But subleasing isn't as simple as finding a tenant and collecting a check, says Todd Anderson, senior managing director at CB Ellis, a commercial real estate firm in Los Angeles. Keep these cautions in mind:
Check what rights you have in your lease. If you don't own your building, your landlord may not allow subleasing, may limit the types of businesses to which you can sublease or may stipulate the rent at which you can sublease, because the building doesn't want to compete with its own tenants for new occupants, he says. Those conditions may also change depending on the occupancy levels of the building.