The lowdown on subleasing your office space
The current economic climate is forcing firms to cut down their workforce and downsize their operations. With extra room in their office, they are facing the option of subletting the space for extra income.
This is not a new trend. According to this report, the total number of sublease space in Silicon Valley has increased to 3 million square feet since 2011. If you are trying to find office space for rent San Jose, sublease properties are a good option because they are more affordable.
In Silicon Valley, there are an estimated 63 million square feet of commercial space. San Jose, which is the economic and political center of Silicon Valley, has about 21 million square feet of office space.
Last year, there was an increase in subleasing activities in San Jose and the greater Silicon Valley area. 2018 was a record year for Silicon Valley for the past 20 years, with 13.4 million square feet of space leased out.
If you locked in an office space for rent in San Jose, you might want to consider subleasing the property.
Benefits of Subleasing Your Space
- You monetize an otherwise non-performing asset. If you leave your office space vacant, you’re still paying the rent, utility, maintenance, and building costs. When you sublease the property, you write these expenses off your books because the rent will cover the costs.
- The length of the lease for sublease properties are shorter by nature. It gives you the flexibility to move in when you’re ready to occupy the office space for rent.
- If you have a large space, you can make money out of the vacant rooms that you are not utilizing.
- If you already made some renovations, your sub-tenant does not need to spend on the interior. It can be a good incentive for them since their office is move-in ready.
- For subtenants, the sublease space is attractive because it’s much more affordable compared to renting an office space. Also, they can rent the exact square footage that they need. In comparison, prime tenants have to pay for the whole area even if they are using only a small portion.
- The leasing transaction is more straightforward compared to the agreement between the prime tenant and the landlord. The landlord only needs to sign the lease consent form and leave the negotiating between the two parties.
- Often, prime tenants include a WiFi connection, the use of the break room, or the conference room. The subtenant will save a lot of money because of this.
Those who are not keen on renting a subleased office space, you can partner with a property finder to find the best deals and options that are suitable for you and your business needs.
Property finders such as Office Finder have contacts with local real estate brokers who can find you the perfect space for your office. All you need to do is to input all your requirements, and the website will do the rest. For more information, you can always search the internet for answers to your questions.
