If you have excess space in your office, you can generate considerable income for your business each month by renting it out.
The expert tenant reps at Mazirow Commercial have more than 30 years of experience navigating the commercial real estate market and helping clients find suitable tenants for commercial sublease agreements.
In a subtenant agreement, the entity subletting space is known as the overtenant. The entity leasing/renting space is the undertenant.
If you’re in the market to sublease office space in your building, you need to carefully evaluate current and projected market considerations and other factors to avoid legal trouble down the line. You may have to get permission from your landlord to enter into a sublet lease agreement.
Also know that if your undertenant fails to pay rent, it doesn’t relieve you as the overtenant of responsibility to pay the landlord. That’s why it’s so critical to screen prospective undertenants and carefully write a sublease agreement in a way that protects your rights and interests as the overtenant.
The tenant reps at Mazirow Commercial can help you:
It can be profitable to rent out space in your office. But it’s important to approach the process with caution. Signing a sublease agreement establishes a legal relationship between you and your subtenant that is separate from your relationship with your landlord. However, your subtenant is still subject to the same terms outlined in the master lease between you and your landlord.
You may have some flexibility when it comes to determining things like how much your subtenant will pay for rent, utilities, insurance, and damage deposit, and whether your subtenant can make improvements (subject to the terms of the master lease).
Don’t take chances—get expert help drafting a commercial sublease agreement and finding a suitable undertenant. Contact us to learn more.