I am wrapping up a sublease in Doral and am in the midst of marketing a beautiful one on Brickell, and I have realized many folks don’t understand the benefits of a sublease and the steps necessary to execute a successful sublease.
The majority of commercial office leases in South Florida provide tenants with the right to sublease their space. Oftentimes companies are acquired or there are changes to their business model that result in an office space no longer being needed, but there is still a lease in place. In many cases, the best way to mitigate that rent liability is to sublease the space. Here are my 5 tips to a successful sublease:
- Determine if furniture stays or goes; when will the space be available; and dig out your lease and a recent rent invoice. You will need these items when you meet with me.
- Call me. No, seriously, you will usually need a real estate broker with an expertise in office leasing to help you market the space and then guide you through the sublease process. An experienced broker will understand the current market, know your landlord and be able to provide some guidance about how long it will take and how much rent you may be able to recover.
- Once I find a prospect, you will need to move quickly because subtenants usually want to occupy immediately. Terms need to be agreed upon so a sublease document can be drafted and signed by both parties.
- Once the sublease document is signed by both parties, the Landlord reviews the document and then determines if it will consent. Usually you will have to pay for the Landlord’s attorney’s fees for this review and preparation of their consent.
- Your subtenant can move in only when ALL of the following have occurred: signed sublease, signed Landlord’s consent, subtenant has provided insurance certificates for themselves and their movers, subtenant has paid its security deposit and first month’s rent.
A sublease can have quite a few moving parts since so many parties are involved. I have handled more than my fair share of subleases. In fact, landlord leasing agents refer subleases to me frequently because they know that they can trust me to do the job efficiently and correctly. Tenants are happy because I save them a lot of money. If you have an office you no longer need, give me a call. I can provide you with a free analysis of your situation.