Expert Guide to Sublease Office Space

Miles Anderson | 3 February, 2024 | Est. reading time: 5 minutes
Sublease office space to cut costs and secure a prime location.
A simple answer to the question "What is a sublease office space?" involves transforming an unused area into an income-generating one. This is a smart solution for businesses seeking ways to make an underutilised space purposeful.

Dive right in to learn more about the concept of subleasing office spaces and its benefits. Take notes and make a checklist of important reminders as you go along to make an informed decision.

Table of contents

What is a Sublease Office Space?

A sublease office space, commonly called a sublet office, is a rental solution for businesses looking to recover costs from their underutilised space. It might be the entire workspace or a portion of it. 

Unlike coworking spaces or private offices, sublet workspaces involve more intricate rental arrangements. Tenants of sublet spaces typically navigate two agreements;

  1. The agreement outlined by the head landlord
  2. The agreement set by the original tenant acting as a sub-landlord

Despite the complexity of the rental agreement, the workspace price might be lower than expected. This is a great opportunity, especially for businesses seeking a more cost-effective workspace solution.

Sublet offices are a smarter choice than traditional spaces. Apart from their affordability, they also offer flexibility, access to a fully furnished space, premium locations, and more. Keep in mind that not all sublet offices provide such great advantages. 

Want to learn more about “What is a sublet office space?” Here’s a simple guide to sublet office spaces that you can use as a reference. 

How Does Subleasing Work?

Before we delve into how subleasing works, let’s first define two significant terms in this process: sublessor and sublessee. 

Sublessor refers to the original tenant acting as a sub-landlord of the workspace. The sublessor allows individuals to rent the whole or portion of their office space. Additionally, a sublessor can set a new rental agreement or follow the original terms and conditions.

On the other hand, a sublessee refers to the tenant who will occupy the whole or portion of a sublet workspace. A sublessee follows a sublease agreement set by the sublessor or head landlord. 

Here’s how subleasing office space works;

  • When tenants can no longer afford the rent, hope to change their work setup, or want to generate extra revenue from the unused space, they usually resort to subletting. This is when they become sublessors or the co-landlords of the workspace.
  • Once sublessors find their respective sublessees, the arrangement begins. As previously mentioned, the head landlord or the sublessor can set the rental agreement.
  • Assuming that the sublessees sign the agreement, they will now pay the rental fee to the sublessors. The rental fee will be distributed to both sublessors and head landlords.
  • The sublessors are the primary agents responsible for managing the sublet workspace. But in some cases, the head landlords will still take care of the workspace, including the maintenance and repairs. The setup still depends on the agreement between the head landlord, sublessor, and sublessee. 

Make extra revenue by renting out your unused office space. List your underutilised workspace today with our global platform! Continue reading to learn more about “What is a sublease office space” and its advantages to your business. 

3 Key Advantages of Sublease Office Space

Subleasing office space offers great advantages for both sublessors and sublesses. Here’s a walkthrough of some notable benefits it offers to your business;

Extra Income and Lower Costs

In Australia's never-ending era of inflation, optimising strategies have become necessary to go along with the current. For businesses with unused space, subletting is a savvy choice to lower workspace costs and generate additional revenue.

On the other hand, sublessees can also reap the benefits of this arrangement by gaining access to an affordable, fully furnished workspace for their business operations. Ultimately, this setup creates a win-win situation for both sublessors and sublessees.

Access to Resources

Setting up a workspace from scratch is both time-consuming and expensive. By renting out a fully furnished, sublet office space, you can access office essentials and shared amenities, such as chairs, desks, ventilation, kitchen facility, and more. These perks are valuable for enhancing your team's work productivity.

Keep in mind that not all sublet offices come fully furnished. Some come as a conventional space, requiring you to set it up from the start. Hence, doing extensive research before renting out a sublease workspace is important. 

Want to discover the best sublet offices in Australia? Get in touch with our team today! Keep reading for more valuable insights into “What is a sublease office space” and how it can help your business grow.

Expansion Opportunities

Renting a subleased office space in a shared environment unlocks multiple networking and collaboration opportunities. Expanding your business and personal networks through these opportunities is necessary to boost your visibility in a competitive market.

If the networking is successful, collaboration will surely follow. Collaborations nourish your company’s growth, helping you create a more promising future for your business. 

A subleased office space is indeed a solution worthy of consideration. However, you should be aware of some lapses in this arrangement to protect your business.

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What are the risks of a subleased office space?

Some pointers below list and highlight the risks of subleasing office space and how to prevent them; 

  • Some sublessors may sublet their office space because of their current unfavourable terms with the head landlord. Prevent carrying the burden of such unfavourable terms by carefully examining the agreements and creating a comparative analysis with other available sublessors. 
  • Most sublet offices do not offer customisation options. This may not be a good option for potential sublessees looking for a workspace to personalise the office, depending on their brand identity. In this case, a traditional office may be a better option.
  • Tenancy poses potential problems for both sublessors and sublessees. For sublessors, relying on the sublessee for rental fees can be risky, especially if the subtenant abruptly vacates the workspace. On the other hand, sublessees might face possible eviction if the sublessor decides to revoke the workspace. Establishing a mutually agreed-upon bond is necessary to prevent these issues.
  • Some sublessors might face challenges when it comes to finding the right sublessee for their workspace. One of the best ways to avoid this is by marketing your unused area on a platform with an extensive network of clients, such as Office Hub. At our platform, your chances of finding a sublessee quickly are quite high.

How to Sublease Your Office Space?

Subletting your office space can be daunting. Here’s a simple guide to simplify subleasing your office space in a competitive business landscape;

Step 1Determine if the original agreement allows you to sublease your office space.
Step 2Once the legal evaluation is done, assess the current utilisation of your workspace and optimise the layout if needed.
Step 3Create a well-planned strategy to effectively market your space and attract the right tenants.
Step 4Take high-quality pictures of your sublet office space and create an enticing workspace description.
Step 5Share sublet office space on platforms with a wide network of individuals, such as Office Hub.
Discover more tips on subleasing your office space by visiting our page. Happy reading!

Explore Sublease Office Spaces Today!

Now that we’ve understood “What is a sublease office space,” let’s explore some of the available listings in Australia. Below is a curated list of sublet offices available in major cities in Australia; 

Got any questions about these listings? Feel free to give our friendly flexperts a call. Rest assured that our knowledgeable representatives will promptly address your concerns or inquiries.

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