Office Sublet: What are the Pros and Cons?

In today’s competitive world, businesses need to do everything possible to reduce expenses. The recent trend shows that many companies are motivated to find an office sublet to save on their bottom line.  The idea is to be optimal with their office space needs.

Office sublet

On the other side, office buildings are also exploring sub-letting for the same reasons. Indeed, if you have a large office that is not being fully utilized, you can consider sub-letting it or sub-leasing it to another company to use. By doing so, you can earn additional money that will help you manage your finances better.

However, just like any other things in life, there are always the cons that comes with the pros.

While sub-letting seems a good enough option, there are many issues involved. You need to take a detailed look at the pros and cons involved before coming to a final decision.

We have listed out all the pros and cons of subletting your office. Go through them, so you can make an informed decision.

Subletting your Office

If you have leased commercial space for your office, then there is a possibility of the office being underutilized. This could happen because you had taken too much space or your office growth didn’t happen as planned. In any case, when you have excess space being unutilized, it is a loss for you.

Subleasing or subletting allows you to lease a part of your office to some other business. This will allow you to make optimum utilization of space while earning money through the subletting.

It is important that you first read your contract with the building owner to know if you are allowed to sublet. You need to study the terms carefully before going ahead.

Productive meeting

The Pros of Subletting your Office

1. Helps you earn additional income

Subletting allows you to earn rental money from space you are not utilizing. This money can be very useful and help you manage your finances better. When space is not being used, making money from it is a good business decision.

2. You can get a better office space using this option

When you are searching for an office, you can get one that is large and located in a good place. Even if you don’t need the entire office, you can sublet it. This allows you to get a good office while making the best use of the space. Subletting is an option you should consider while entering into the contract. This allows you extra space that you may need in the future.

3. The subletting is in your control

You can decide the duration for which you will sublet the office. If you are expecting lean times for a year, you can sublet the office to earn money during this time. Once business improves, you may need office space to use. You can then end the lease and continue to use the entire office.

4. Networking becomes easier

Your networking improves by subletting your office. You can sublet the office to other entrepreneurs or businesses. Associating with these businesses can be helpful for you. A mutually beneficial arrangement can be worked out where both parties help each other on the business front. Subletting your office to multiple freelancers is another option that allows you to network better. These are advantages for your business that will help you in the long run.

5. You can offer facilities and earn more

Apart from charging rent for the sublet office, you can offer other facilities. For instance, you can offer them the use of common areas like a conference or waiting room. You can even offer them the use of your reception or front office. Administrative support can be offered. These will make it easy for a small company to sublet your office while allowing you to earn more.

Office worker

The Cons Involved

1. You need to ensure business compatibility

The business of the company to whom you sublet your office needs to be compatible with yours. Else, it can lead to problems. For instance, if the business is involved in work that involves a lot of people coming and going, then it could disturb your employees. Any work the other company or its employees do should not disturb your work.

2. Sudden growth of your company can affect the subletting

Suppose there is a business development that leads to rapid growth in your business, it could pose a problem. You may then immediately require additional office space to expand your business. You will not be in a position to do so because you have to sublet the office. It is not possible to demand your space back until the completion of tenure. This is a major con in subletting.

3. Your responsibilities increase

Your duties would increase as someone subletting the office. You are responsible for all that the other company does. Also, you need to offer them support like maintenance, general administration, etc. Failure to do so can create problems and lead to conflicts between both parties.

4. You could end up violating the contract with the owner

If you do not study the terms of the contract you signed with the owner, it could cause problems. If the contract has restrictions on subletting, then they need to be strictly followed. If your subletting violate any of these restrictions, it would cause trouble. You could face legal action from the building owner.

5. You cannot earn more rent than what you owe

A mistake many businesses make is by thinking they can pay their rent by subletting space. You can only earn a small fraction of the rent you pay. The rest needs to be paid by you. It is not practically possible to earn more money than the market price. Charging a higher rent from another company may look like an idea, but it is not practical in nature.

Clean office environment


Subletting an office has many benefits to offer. All the pros listed above explain why this is a decision you should consider if your office space is not being properly used. However, the cons are issues you need to think about carefully. Not studying the contract or subletting to an undesirable party can cause serious problems that would affect your business.

You can consider taking the advice of an attorney before you proceed. Also, doing a due diligence check on the sublessee will help avoid problems in the future.


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