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- Credibility Concierge™: Get a dedicated Credit Advisor for professional account management
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- CreditAdvisor™: Continuous, real-time access to another company's full credit file with all D&B scores
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Is Subleasing Office Space a Good Idea?
There are pros and cons to subleasing office space. On the positive side, taking over another company's lease can be a great way to secure short-term space and a below-market rate rent. Often, subleases can be had for 10 to 50 percent less than the regular lease rate. The discount depends on how marketable the space is and how much time is left on the lease. The shorter the sublease, the lower the price.
Another plus to subleasing — the outgoing tenant may be going out of business or relocating to another state and be willing to sell your company its furniture and office equipment at a big discount.
The downside to subleasing: Whether your company outgrows the subleased space or not, it will probably have to move at the end of the lease, or at the least, pay the current market rate to stay put. If the market rate jumps 30 percent during your one-year sublease, your company may wish it had signed a five-year lease.
Another negative is that subleased space comes as is. Landlords of subleased space won't provide tenant improvements such as new carpet or private offices. Your company will have to pay for any improvements — which won't be cost efficient if you're planning to stay in the space only for short time.
The information and advice provided by Dun & Bradstreet Credibility Corp. is provided "as-is." Dun & Bradstreet Credibility Corp. makes no representations or warranties, express or implied, with respect to such information and the results of the use of such information, including but not limited to implied warranty of merchantability and fitness for a particular purpose. Neither Dun & Bradstreet Credibility Corp. or any of its parents, subsidiaries, affiliates or their respective partners, officers, directors, employees or agents shall be held liable for any damages, whether direct, indirect, incidental, special or consequential, including but not limited to lost revenues or lost profits, arising from or in connection with a business's use or reliance on the information or advice offered by Dun & Bradstreet Credibility Corp.
