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Subleasing is simply an agreement the leasing of a property to a third party tenant. If you’re already leasing a Miami commercial real estate property and decide to lease the whole or parts of the property to another, you turn to subleasing. In this situation, you become that sublessor while the new tenant the sublessee. This is a cost-effective alternative if you’re planning to lease a considerably sizable property. But before delving into subleasing, learn the pitfalls and benefits that accompany this sort of agreement.

The Pros 

For starters, subleasing, for the third party tenant, is a more affordable way of leasing a Miami commercial real estateproperty. In addition to that, this type of properties are easier to find and obtain because the qualifications are less stringent compared to an exclusive lease. 

Subleases Miami commercial real estate properties are also good for small business. This is greatly useful if you find it hard to look for a specific space that can efficiently accommodate your business. By providing a lot of options in terms of choices, marketers can easily start small and slowly expand without much trouble. 

Subleased properties are also accompanied by simpler commercial leases. They are pretty straightforward and the terms are quite simpler than exclusive leases. However, subleases are still legally binding. In terms of upgrades and renovations, you don’t have to worry about the amount of money you need to shell out for such changes. Subleased properties are often already finished and need little or no changes. 

Another option that subleasing provides is the opportunity to take an entire space. If your sublessor decides to relocate before their lease is over, you can have the chance to sublease the entire space. The process is significantly easier than leasing exclusively or for the first-time. You already have an existing financial relationship with your sublessor, which makes you more than qualified for the lease. 

The Cons 

Yet while the mentioned advantages are pretty tempting, there also exist several pitfalls. First, if the original lease is unfavorable, it may be passed along to you. Second, if your sublessor defaults, it will affect your sublease. 

Marketing obstacles are also present with subleased Miami commercial real estate properties. For instance, since you share the space with the sublessor, your business may be perceived as an underdog and provide your clients with the feeling of insignificance. Fortunately, this small-business atmosphere can be easily reduced if you choose to sublease a property whose sublessor is in the same business niche. 

Mark Michael Ferrer 

Miami Commercial Real Estate



By: Mark Ferrer

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