Would my space be compelling to another office user?
It is important to evaluate if your space is flexible enough to work for different industries or if it is so customized that it only works for your business or industry. When you have a layout that works for many uses, clearly, your prospect pool is larger.
Where do my current rental rate and subsequent rates compare to the market?
Sublessees will expect a discount on a sublease because there are many disadvantages to being a subtenant. Namely, subleases are often leased as-is with little to no tenant improvement allowance. The exception is in desirable buildings with little to no vacancy. However, depending on market conditions, tenants can some times sublease their space at a discount of current rental rates but still make a profit on their sublease.
How well was my sublease clause negotiated in my lease?
What does the Landlord require the Sublessor provide to sublease their space? Does the clause say that Landlord consent may not be unreasonably withheld? How much time does the Landlord have to approve or disapprove a sublease? What fees due to your Landlord are associated with subleasing your space? Does the Sublessor retain any profits from the sublease or do they go to the Landlord? All of these items must be carefully examined by your Broker.
How much time is left on my lease?
At some point in time, the likelihood of subleasing a space diminishes. Although there is the possibility of doing a blended sublease/direct lease with the Landlord, most serious companies are not willing to move into a space for less than one year and even that may be generous. Brokers should help their clients evaluate prospects carefully since the Sublessor will still be responsible for the master lease. Unless there is a good reason why a tenant is willing to do a very short term deal, it is important to vet out subtenants. If they walk the lease, the Sublessor is still responsible.
Although there are many things to take into consideration when office users decide whether or not to sublease their space, these are some of the basic questions to ask. Please contact me if you would like me to assess your current situation and advise you on your options.