Advantages and Disadvantages of Austin Office Subleasing

Advantages of subleasing

• Business owners can reduce their office space costs or lease space in a building that would not otherwise be affordable. Savings usually range from 20-50% below market lease rates, however the discount depends on how marketable the space is and how much time is left on the lease.
  
   

• Subleases often include furniture, phone systems and all equipment that a company may need to open an office immediately.

• Remaining sublease terms are generally less than 3 years so companies have the opportunity to secure short term deals.
   

Disadvantages of subleasing

• Finding a sublease space that fits your company’s needs can be difficult. Unlike leasing space directly from the landlord, sublease space generally cannot be built to suit or divided.

• Since your relationship is not directly with the landlord, your fate is tied to the fate of the primary tenant. If the primary tenant defaults on the lease for any reason, you will likely be evicted through no fault of your own. Although you can never completely insulate yourself from risk, you can minimize it by gathering as much information as you need to make an informed decision.

• After the sublease expires you will most likely be faced with a substantial increase in rental costs upon renewal or be forced to relocate once again.