Sublease space often comes at below-market rents and ready to move in. Tenants watch the sublease market for bargains; investors watch it as a read on market health.
Sublease Advantages
- Below-market rent during sublease term
- Existing buildout reduces upfront costs
- Faster occupancy timeline
- Furniture and equipment often included
Considerations
Sublease term limitations, subordination risk, and buildout condition require careful evaluation. Direct deals with landlords may offer better long-term certainty.