Businesses evolve over time but your office lease generally does not. As a tenant, changing business needs and economic environments may put pressure on your business needs that will not always align with your lease commitment. Many businesses report their space requirements do change at some point during a long-term lease. However, there are workable solutions to help you adapt and even capture value from these unforeseen changes in your space requirements.
Listen to Principal Broker Ben Blumenthal’s thoughts on the subject:
If you require more or less space than you currently occupy, it behooves you to have a broker representative who can work on your behalf with the building and dive into the leases rolling as well as upcoming opportunities. This exploration can help you and your representative structure a deal that allows you to terminate your remaining obligation while trading in for a new lease that better suits your needs. This option is excellent as it does not involve delays which arise from finding a subtenant and developing a sublease agreement. Additionally, you avoid the stress of a double rent situation which is never ideal.
While the conditions under which a lease takeover would occur are less common, this is an extremely effective option which allows your business to avoid a double rent situation and move to a new space under a new landlord. It is crucial to have an experienced broker assist you in navigating this complex arrangement.
In the development of a new lease agreement, your new landlord would agree to be assigned your current lease as a regular subtenant. They will then manage the responsibility of subletting or otherwise offloading the space. The details of this process can be complex so you should have a skilled broker help navigate the terms and conditions of these arrangements.
This path is highly common and reliable; your broker will assist you in both marketing your space to source a subtenant and producing a sublease agreement in which you will serve as the landlord to the new subtenant. Under this arrangement, you are free to pursue a new space as your subtenant will be fulfilling your obligations. Creation of marketing materials and subtenant discovery do take time. Additionally, you will be maintaining a relationship with your old landlord as you are still the tenant in that agreement.
Confer with a Noah & Co. broker today to receive expert consultation on the best option for your business’s movement-related needs.