Lastly, remember that in the large majority of cases, a
sublease requires the consent of the "master landlord"--so your landlord, who is a tenant under a master lease, is obligated by the terms of the master lease to get the master landlord's consent, and that consent is an important pre-condition to the effectiveness of the
sublease.
Identify a potential subtenant and establish key business terms: Once you've spoken with your landlord and you are certain that you will be pursuing a
sublease, the next step is to sketch out the key business terms of a
sublease arrangement (rent, term, etc.
3% of new leases for tech/creative firms with move-in dates between January 2013 and April 2013 were
subleases; In contrast,
subleases for traditional tenants comprised just 15.
Having economically defeased both its rental obligations under the
sublease and its fixed payment under the fixed payment option, FM keeps the remaining portion of the headlease prepayment as its return on the transaction.
Coincidentally, as you've seen
sublease space dwindling down, you've seen pricing go up," Turchin said.
Grizzled real estate veterans recognize that timing plays a crucial role in
sublease outcomes.
The quantity of marketable
sublease space that is available is important because
sublease space accounts for about 30 percent of the entire Manhattan office market and is generally priced below direct office space.
A
sublease transfers less than the entire term and interest in a lease.
Since we expect our growth to take place primarily outside Atlanta, we were pleased to be able to
sublease our excess space, which has almost 5 years of its lease term remaining," said Lewis Jaffe, Verso's President and Chief Operating Officer.
The bulk of the
sublease space in the building is being offered by Allianz, the German insurance company, which signed a deal to relocate to 1633 Broadway over the summer.
Historically,
sublease rents have been less volatile.
NEW YORK -- Trizec Approves Morgan Stanley
Sublease at Same Property
