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Austin Office Space Subleases
Right now there are over 100 Austin office space sublease options available in the Austin office market. What that means to you is that there are some great deals to be had if you are a company that is seeking flexibility, shorter lease terms and low cost office space. These include startups, growth companies, and those just looking to cut costs.
While leasing office subleases has its advantages such as typically being 20-50% below market lease rates, there are also some disadvantages. Austin Tenant Advisors up to date knowledge of available Austin office subleases and expertise will ensure you find the right Austin sublease for your company.
Search our database of available Austin office space sublease listings or to receive a customized list of current office subleases in Austin, Texas please contact us with your requirements. You can also learn more on our main page of Austin Tenant Advisors.
What Does it Mean to Sublease Office Space?
Subleasing office space means you are leasing office space from an existing tenant. You see sometimes a tenant may wish to go out of business, downsize or is rapidly growing and needs to relocate. In one of those situations rather than having to continue paying the rent they find another company looking to rent office space. The two parties agree to a lease term, rate, and conditions and an office sublease agreement is signed by both. The original tenant is still ultimately responsible to the landlord for the master lease requirements however now they have someone else paying all or most of the original rent obligation.
Benefits of Subleasing Office Space
- Rental rates are typically 10% to 30% below market
- Possibility for shorter sublease terms
- Sometimes they are plug-n-play with furniture, phones, and other equipment
Disadvantages to Subleasing Office Space
- Not able to negotiate the terms of the master lease
- If master tenant defaults on the lease the subtenant could be required to move out unless arrangements with the landlord direct are made
- Sometimes take a little longer to execute because the sublease has to be approved by the landlord, tenant, and subtenant
- Renewal options do not typically convey with a sublease
- Sublease space is normally taken “as is”
- You might get a sweet deal now however good chance the direct lease rate will much higher after the sublease expires
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