Are you searching for an office space to sublease? It is an exciting and stressful time. On the one hand, you are expanding your business, and on the other hand, you have to be careful about the agreement you sign.
Due to the recent pandemic, commercial real estate in Corpus Christi is trying to cut down its losses by subleasing its office space. It is good news for you as a lessee because this gives you more negotiating power and opportunities to get a great deal.
Many of them are all set to wrap up the process so they can move on as quickly as possible. This can tempt you to take the first offer that comes your way without even considering other options. In the rush of office space, you might overlook some critical clauses in the contract, putting you in a difficult position later on.
We have compiled a list of frequent blunders that you should avoid while sub-leasing your office space to assist you out.
Common Office Space Subleasing Blunders to Avoid
Failure to Understand Responsibilities When Subleasing My Office
When you sublease your office space, you are still the tenant. You are responsible for upholding the terms of your lease agreement with the landlord. This means that if your sub-tenant fails to pay rent or damages the office, you will be held liable.
You need to carefully screen your subtenants and ensure that they have the financial resources to pay rent on time. You must include a clause in the sublease agreement that makes them responsible for any damage they cause to the office space.
If you rent your first office space, know the tips for negotiating the best commercial lease agreement.
Haven’t Calculated Subleasing Cost
Even though you are subleasing your office space, you will still have to pay rent to your landlord. In addition to that, you will also have to bear the cost of any repairs or renovations that are needed to make the office space sublease-ready.
Before you sign the sublease agreement, make sure you understand all the costs involved. This will help you keep away any financial surprises down the road. The common cost of subleasing an office space are:
- Brokerage commission
- Repairs and renovations
- Legal fees
- Marketing expenses
- Lost rent
You need to consider the opportunity cost of not being able to use the office space yourself. If you are planning on using the office space in the future, subleasing it might not be the best option.
Not Working With an Agent
The go-it-alone approach might work in some cases, but it is not advisable when subleasing your office space. It is amazing to work with experienced realtors in Corpus Christi, TX, when it comes to real estate transactions.
They will be able to help you find suitable office space and negotiate the best possible deal on your behalf. They also know how to maximize the value of your office space and make it more appealing to potential subtenants. The best part is that they will do all the legwork for you so you can focus on running your business.
Not Giving Themselves Enough Time
Looking for an office space can be a time-consuming process, even with the assistance of an agent. You will have to visit different office spaces, compare prices, and negotiate with landlords. Many large companies start looking for a commercial real estate space a year in advance before they actually need it.
It leaves plenty of time to find the perfect office space and get the best possible deal. You may be forced to accept a less desirable office location at a higher rate if you wait until the last minute. Sometimes the process is shorter and can be done in a few months. But, to be on the safe side, it’s always better to start early.
Leasing Too Much or Too Little Space
Do you know how to calculate the right office space for your business needs? It can be tricky to get the calculations right, especially if you are a startup. If you lease extra space, you will have to bear the cost of unused space. On the other hand, if you lease too little space, your business will quickly outgrow the office and have to move again.
It is always a good idea to err on the side of caution and lease a bit more space than you need. It will give you the flexibility to expand your business in the future without having to move to a new office.
Not Reading the Lease Agreement Carefully
Many businesses have expanded their operations to meet the growing demand for office space, resulting in increased competition and pressure on rental rates. While a lease agreement may benefit both the tenant and the landlord, it is essential to review the terms and conditions before signing it carefully.
While a lease allows tenants to stake their position on a specific location, it may also trap them in an environment that does not measure up to their expectations, especially if they cannot sublet or transfer their lease to another business. It also dictates everything from how long you can occupy the space to how much you have to pay in rent.
To avoid any sudden situation, make sure you understand everything that is written in the lease agreement before signing it.
Basing Their Decision Solely on Cost
The cost of leasing an office space is one of the most important factors to consider, but it should not be the only thing to consider. Other factors such as the location, the amenities, and the terms of the lease agreement are also important.
For instance, office space in a prime location might cost more than office space in a less desirable location. But, the prime location will give your business exposure to potential customers and make it easier for your employees to commute.
Similarly, an office space with amenities such as a gym, a cafeteria, and a daycare center might cost more than an office space without these amenities. But, the amenities will make it easier for you to attract and retain employees.
So, when looking for commercial properties, make sure you consider all the factors and not just the cost.
Subleasing an office space can be a great way to save money, but some risks are involved. Knowing these threats and how to avoid them can help you have a successful experience. A real estate company in Corpus Christi can help you find the perfect office space for your business. They are well-versed in the leasing process and can help you avoid common mistakes.
Contact CLA Realtors today if you are looking for real estate in Corpus Christi, Texas. They are a leading provider of commercial real estate services in Corpus Christi and help you find the proper office space for your business needs.