Sublease Overview: What is the Best Approach (part 1)

​The activity of subleasing real estate space says much about the current state of the market. Subleasing is when you have term remaining on your lease, and you rent all or a portion of your space to another company who also become financially responsible for the rent until the expiration of the term. A ‘healthy’ supply of sublease space is an amount that gets rented quickly at rates close to market for similar non-sublease, or direct deal, space.  A ‘non-healthy’ amount of sublease space would be when sublease space sits longer than normal on the market and is renting for considerably lower than market rates for similar direct lease offerings.  Overall, the sublease market will demonstrate the health of the supply-demand fundamentals (the foundational rule for economic markets) within the region. When vacancy is low, the sublease market will be healthy and strong.

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