Whether you want to find someone to sublet your office, or you want to take full advantage of the slumping real estate market while the taking’s good, it’s critical to be prepared—it will ensure that the negotiation process for the sublease rental agreement goes well.
Here are some recommendations for the sublease document and the negotiation process for sublet opportunities:
- Research local rental values to make sure that any proposed rental fees are reasonable in relation to average rental market pricing. For a good resource, visit www.loopnet.com or contact Cardinal Real Estate Partners directly.
- Be prepared to have the landlord involved in the sublease rental agreement, as this is their property and they have a lot to say about the terms of the sublease document. This can result in a somewhat lengthy approval process lasting anywhere between two and four weeks. In most cases, a landlord is within their rights to charge an additional fee for the consent and from time to time, lender approval has to be obtained as well.
- With so many parties involved in the negotiation, it’s often good to have a commercial property attorney or broker who understands all sides and the best way in which to unite everyone for a smooth sublease rental agreement.
- Carefully read all parts of the sublease document to make sure no hidden terms push the rights onto others and diminish your own. Although most of today’s sublease rental agreements are fairly standard, ensure that there is nothing that favors someone else. To ensure you’re well versed in all of the contents contained, be sure to read both the master lease and the sublease forms early on.
Considering all of these aspects that are involved in negotiating a sublease rental agreement will help ease the process for all parties of a sublease arrangement across all commercial properties.