Sublease Opportunities
If you do not want to make a long-term office lease commitment (i.e., 5 years or more), subleasing can provide the desired flexibility and financial advantages because of below-market rents that typically accompany subleases.
Simply stated, a sublease arises when a "tenant" has excess space. This excess space may be either a portion of, or its entire suite. Since this space is "excess," it represents a cash flow burden that motivates the tenant to quickly fill it, resulting in sublease rents that could be 10% to 50% below market. In addition to obtaining savings generated by the below-market rent, sublessees often benefit from not having to come "out-of-pocket" for furniture systems, telephone equipment and computer wiring that is usually in place.
The disadvantage to subleasing office space is that the space is generally delivered in an "as is" condition. As a result, you might have to incur the expense of making improvements or alterations. Generally, the below-market rent justifies these costs.