As the word implies, subleasing is another type of leasing, but it’s a bit different in terms of the persons or entities involved in the leasing terms. Unlike the traditional commercial leasing where only involves the lessee and the lessor, commercial subleasing a sublessee or a subtenant. Based on that fact, commercial subleasing can be best defined as an agreement in which a property being leased by the original lessee was also rented by a third party or by another lessee known as the sublessee or subtenant. That means that both the original lessee and the sublessee would be leasing the same commercial property at the same time. Each one of them bears different liabilities including the provisions and payment terms.

 

The primary lessee has the right to lease its leased property to another lessee, normally a portion of the overall commercial space. But the terms of payments for both the original lessee and the sublessee is different. In most cases, the sublessee will only pay only the space they leased to the original lessee, and the original lessee will then pay the remaining balance to the lessor.

 

Though sublessee is pays a small amount as compared to the original lessee, both of them has the same legal responsibilities to the lessor. Among of the responsibilities original and sublessee must face are damages to the property being leased and the rental fee. It is advisable also that when negotiating on a sublease, know first the terms being offered by the lessee, if they could be trusted or not. If possible, try to check the original leasing terms between the lessor and the original lessee.

 

For those businessman who needs a small and cheap office space, but on a tight budget when it comes to office space, then subleasing is the best option rather than leasing an entire commercial property which might hurt your budget and paying for those unused areas of your office space.

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Filed under: Office Space

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