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Signs That You May Benefit From Subleasing Office Space

Available sublease space continues to grow in Denver due to ongoing economic factors, the most obvious being COVID-19. Companies are reassessing their office space needs because many people have worked from home on and off for the last 6-9 months. Subleasing space can provide benefits for both companies involved and can be very valuable. If any of these signs resonate with you, it might be time to start looking into how your company could benefit from subleasing office space.

Shorter or flexible Lease terms

Companies that are looking for shorter or flexible lease terms often benefit from subleasing space. If your company is starting up or going through a transition, a shorter lease term could be valuable until you are ready to find a more permanent office space solution. With a direct lease with a building owner, it is standard that ownership will require a minimum of 3-5 years. Whereas with a sublease, the original tenant, known as the sublessor, might only have a few years left on their lease, allowing a shorter timeframe and less monetary commitment toward the office space.

Save Money:

One of the most common reasons companies benefit from subleasing space is to save money. Subleasing commercial space can be very advantageous because it is often more affordable than a standard commercial lease. It may be easier to qualify for if you are starting a company. You’ll likely find an office space that’s 10%-50% cheaper than market value.

Nicer finished and higher-end office buildings:

Leasing sublease space can be valuable if you are looking for a higher-end space that is move-in ready with updated finishes. Most of these spaces are already built-out to the original tenant’s needs, so you likely won’t have to worry about upgrades and buildouts. If you don’t want to spend months obsessing over paint colors and finishes, sublease space is worth looking into. Additionally, oftentimes companies choose to leave furniture behind that you may be able to take for free or at a steeply discounted price.

Fewer “Strings Attached”

Subleases are typically more straightforward and manageable than standard commercial leases. However, they are still binding legal documents and are contingent on the original lease. We recommend having an attorney review both the original lease and the sublease before signing.

If you think your company may benefit from subleasing office space, or if you have any additional questions on how subleasing works, please email Ellory Read at or give her a call at 303-395-0114.

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