Subleasing Your Office

Properly subletting office space requires a detailed understanding of the way the process works. A commercial real estate sublease is an agreement between two businesses where one business assumes the other’s leased commercial space under terms specified in a written contract approved by the landlord. Generally, the third party pays the tenant rent, while the tenant continues to pay the landlord.

To ensure all parties’ compliance, several steps must be taken before a transaction occurs:

Consulting the landlord: While he can’t withhold his consent without a valid reason, lessees must ensure the lease even allows for a sublet. Even if a space is vacated, it is still up to the original lessee to meet all the terms of the lease with the landlord.

Deciding on all or part: Subletting a portion of the property or home office has clear advantages; not only can a lessee reduce overheads, but he or she can also develop a useful connection with another business; subletting all of it, however, can solve significant financial problems.

Recording the agreement: A written contract by deed, witnessed and dated, is essential. The landlord may also have to approve this agreement.

Remembering accountability: If the new tenants fail to make a payment, the lessee is still responsible; lessees should stipulate within the contract that subletters remain responsible for their own desk, cubicle or space, including damage, injury, fire, etc.

For further information on office spaces to let in New Jersey, please use the New Jersey Real Estate contact page.


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