Office and commercial spaces have always been an integral part of a company's success. In today's environment, the needs for commercial real estate are changing and adjusting to the reality of COVID and the economy. Subletting becomes a very interesting option to adapt to these changes. Offering several considerable advantages, subletting a commercial space can be the ideal solution for your business.
What is a sublet?
A sublet involves leasing a division or all of your rental space from a lessor to a third party. It must be for at most the remaining term of the lease agreement. The price of the sublet is determined by the tenant and does not have to follow the price requested in the lease. It is possible that a lessor decides to cancel your lease to enter into an agreement directly with the sub-lessor with this in mind, a KWC Montreal broker can ensure for you that the cancellation of the lease is done according to the standards. Important points Subletting clause The first thing to check when subletting space is your lease. A lease which normally has a clause to this effect. Most of the time, subletting to a third party will be possible with the approval of the lessor. It is important to understand that even if you agree with a sub-tenant to take possession of your premises, the final decision will be with the lessor. Certain points that could influence the lessor's decision: the exclusivity of the building and the synergy of the existing tenants with the future sub-tenant.
The first thing to check when subletting space is your lease. A lease which normally has a clause to this effect. Most of the time, subletting to a third party will be possible with the approval of the lessor. It is important to understand that even if you agree with a sub-tenant to take possession of your premises, the final decision will be with the lessor. Certain points that could influence the lessor's decision: the exclusivity of the building and the synergy of the existing tenants with the future sub-tenant.
An advantageous option
The second question to ask is why a tenant would prefer to sublet my space rather than take a new lease directly with the lessor. In the context of a sublet, several elements can influence a tenant to prefer your spaces. In some cases, finding commercial space for rent
is not the ideal choice for a business. Planning is often one of the key points of subletting, the future tenant can save a lot of money in terms of these development costs and sometimes furniture by taking your premises. Our team also often offers the sub-tenant the option of posting their space below market price to give themselves a competitive advantage. Using free rent can also help you position yourself better.
Responsibilities as a tenant
The third and last point is about your responsibility in a sublet. A sublet does not negate your responsibilities under the lease. This is why the agreement must protect you in any situation where the sub-tenant is at fault in relation to your responsibilities. You need to protect yourself with a properly crafted rental agreement. It is important to have the document mounted by a lawyer specializing in commercial real estate.
An interesting option in times of pandemic
Since the introduction of health standards by the government, the big players in the office market are encouraging work at home for their employees much more. Commercial players are strengthening their digital strategy to develop expanded markets through home delivery systems. There is nothing unexpected about these new behaviors, in fact COVID has only accelerated certain concepts that were already starting to gain momentum before the virus. In this reality accelerated by COVID, the commercial real estate sector in the greater Montreal area finds itself with companies from all sectors that have areas above their current needs. They find themselves faced with this problem: what to do with their long-term commercial lease which no longer meets their needs in the current context. There are different options and our team will be happy to explore the different possibilities with you if your business is impacted. If this option does not suit you, there is still a very large offer, especially in terms of office space for rent
Many opportunities in Montreal
If you feel that your real estate situation might require you to post your spaces for subletting, do not hesitate to contact the KWC Montreal sales team. We will support you in the process of subletting your spaces and we will be able to offer you the various options available to you. If you want to take advantage of the furnished office opportunities that the market currently offers us, we can meet with you to determine your needs in terms of area, layout, budget and location. Thereafter, we will seek out the best subletting opportunities on the market and we will be present throughout the transaction.