Office Space and Virtual Office Blog

Commercial Subleasing: Pros, Cons & Misconceptions

commercial subleasing pros and cons

A signed agreement between tenants that governs the occupancy of a commercial space is known as a commercial sublease. Unlike a traditional lease arrangement, a commercial sublease creates an obligation between the original renter and a new tenant looking to occupy that space. Meanwhile, the original renter’s contact with the property owner remains valid.

This is a popular option for renters who need to vacate a property before the lease term has ended, as well as renters who determine that they don’t need or can’t afford the full space they originally moved into. If you’re looking to sublease office space, it’s important to understand the common misconceptions about this arrangement, as well as subleasing’s pros and cons and the key components of a sublease agreement.

Misconceptions about Commercial Subleasing

One common misconception about signing a commercial sublease is that the terms of the original lease agreement no longer matter. However, it’s important carefully review the sublease and the sublessor’s original lease. Never make a deal with a sublessor who won’t show you the original lease. Those looking to sublease a new space should also ask to see a copy of the sublessor’s audited financial statements.

Another misconception is that the landlord doesn’t need to be involved in a sublease transaction. Although this may be the case in some instances, other commercial leases require the original tenant to get the landlord’s approval before moving forward with a sublease arrangement. Not every lease allows subletting.

Pros of Commercial Subleasing

Commercial subleasing is an attractive option for many tenants because of relocation needs, extra space, and budgetary restraints. These are some of the pros of commercial subleasing to consider.

  • Easier to quality for than a traditional lease
  • More affordable for businesses on tight budgets
  • Allows businesses to start with a small space and expand as the business grows
  • Often able to utilize onsite administrative support in shared spaces
  • No need to worry about upgrades and build-outs
  • Costs often include amenities like Wi-Fi and alarm systems
  • Increased opportunities for networking with other onsite businesses

Cons of Commercial Subleasing

However, there are some downsides to this type of arrangement that tenants should be aware of before signing a new agreement. These are some of the cons of commercial subleasing to keep in mind before making a decision.

  • Risk of inheriting unfavorable lease terms, such as hidden fees
  • Subleases can be affected if a sublessor defaults
  • Having to go through the sublessor for maintenance and repairs
  • Can be more difficult to project a “small business” vibe for visiting clients

Key Components of a Sublease Agreement

To get a sense of what is involved in a commercial sublease, take a look at the examples on Rocket Lawyer and Law Depot. It’s always a good idea to have a trusted lawyer review sublease documents before signing. These are the sections typically included in this type of document:

  • Parties
  • Original lease information
  • Terms of sublease
  • Rent
  • Security deposit
  • Notices from landlord
  • Subletting and assignment
  • Insurance
  • Condition of premises
  • Governing law
  • Severability

To learn more about commercial subleasing configurations in New York City, contact NYC Office Suites today at 1-800-346-3968 or via online contact form and get one step closer to finding your ideal space!

Benefits & Costs of Having a Virtual Office in NYC

Benefits of a virtual office

The New York virtual office or business center is an attractive way to get the workspace you need, and is changing the way the city works and does business. An increasing number of employees are working remotely, part time, and freelancing. Additionally, rising direct lease real estate prices continue to put pressure on NYC companies with limited budgets. A company’s need for Manhattan office space is evolving and calls for a flexible-term alternative.
A virtual office or flexible-lease office business center can provide a practical solution and professional alternative to direct lease office space by providing companies with an address, communication services, and more. However, there are a few considerations to keep in mind before making the switch or starting a new business in a virtual office space or flexible office center.

Cost of a Virtual Office

If you are thinking about using a virtual office or executive suite space in NYC instead of a traditional commercial lease space, it is important to understand the cost differences between the two models.
Enrolling in the NYC Office Suites Virtual Office program starts at just $1.50 per day. The virtual office program offers a number of high-profile business addresses, dedicated NYC phone numbers, conference rooms, and private Manhattan short-term offices. Virtual office features are offered à la carte so you only pay for the services you need. For example, you can get 1-3 desk full-equipped private offices for $50 per day per month, voice services for $50 per month, virtual assistant/mail management for $75 per month, and unlimited business hour workspace for $495 (and less) per month. The flexibility allows you to tailor the services to the needs of your growing business.
In contrast, in a traditional office space the average business spends much more per employee for their space, due to the many costs involved and the overly dedicated use of space. Usually the lease locks you in for three years, in many cases much longer.

Pros of a Flexible Virtual Office in Executive Suites

Having a virtual office means that employees can work from home without the inconvenience and waste of time spent commuting. Surveys show that workers increasingly value schedule flexibility without the traditional constraints of fixed hours that come with a fixed location. Virtual offices can encourage you to reduce the use of paper in favor of space-saving and eco-friendly electronic communications and storage.
Virtual offices and office business centers with flex terms offer a professional presence and even privacy for a fraction of the price of a traditional space, which is especially important for startups, nonprofits, and businesses looking to cut costs. With a virtual office, you cut out expenses for buying or leasing a property, utility bills, and maintenance. With reduced overhead costs and term commitments, companies can take more creative risks and spend money on developing relationships with new clients and building existing ones. It’s “Workspace as a Service” and it’s a big edge to have over the competition.

Cons of a Virtual Office

However, there are some drawbacks to the virtual office that you should be aware of as well. If you want a space that is heavily branded, has its own receptionist at the elevator, or which reflects your unusual personality then a virtual office space should be customized slightly with color walls and decals and located well within the business center. Likewise if a particular building location is critical for your business, you may have a hard time finding an office business center in it.
Also, although nontraditional work schedules are in fashion these days, not every employee can handle this type of responsibility when the line between work and home routines becomes blurred.

Is a Virtual Office Right for Your Business?

Whether or not a virtual office at an executive suite is right for your company largely depends upon the type of industry you are in and your management style. However, virtual offices with flexible terms have many advantages and will undoubtedly be a big part of the future of business, so it’s smart to familiarize yourself with their prebuilt features and how they will work for you.
We would be happy to tell you more about our customized virtual offices and proud to show you around, so give us a call at 800-346-3968 or send us a message via online contact form.

Why Office Space in NYC is so Expensive and why it is Worth the Cost

virtual office space nyc

New York City has a population of nearly 9 million people living in a densely packed metropolis of just 350 square miles. It is the most populated city in the country, and one of the most popular travel destinations in the world. The constant flow of people in, out and around this city make it the perfect location for any company that wants to be noticed, and be at the center of everything. Of course, not everyone can afford to establish themselves here, because it also one of the most expensive cities to live and work in.

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Benefits of a Furnished Business Center: Flexible Office Space New York City

Flexible Office Space in New York City

A furnished workspace is critical for global sales offices, small businesses and New York technology start-ups, especially those who are building a business on a budget. It can take the hassle and expense out of finding the perfect office space. It lets you get your business started off on the right foot quicker and with less investment upfront. The many different perquisites of using flexible office space include the following:

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NYC Office Space Color Palate for Innovation

New York City Office Space

The perfect New York City office space is one that embodies your company’s culture, tone and spirit. Without committing to the arduous project of fully renovating your NYC office space there are a few things company owners and managers can do to spruce up their workspace. Here, NYC Office Suites shows you how to jazz up a New York City Office Space on the fly.

COLOR IS KEY: FIND YOUR PALATE
Sure, an empty commercial office room with a table and a couple of chairs can work as a corporate meeting room or conference space, but is that really the way your small company wants to promote itself? Yes, a sparsely furnished meeting space is perfectly functional but adding some decorative functional touches and using color to enhance the feel of the workspace can improve the outcomes of meetings with clients. So why not invest in touching up the environment with some mood enhancing color choices?

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Owning Furniture: An Asset or Liability?

New York Office Space Furniture

The most convenient office space NYC has to offer comes with flexibility and should be located in Manhattan prime office locations. When making the decision to open a new business in New York City, there are a lot of things to consider such as overhead costs, employee and Client retention, etc. For most new business owners and entrepreneurs this is the overall cost of a start-up. In addition, commercial real estate rental properties are probably the second most expensive investment for startups after talent acquisition. Smart business owners know that cash expenditures should be thoroughly vetted and weighed during their initial launch period. Any purchase that significantly impacts your cash position or credit lines should be considered carefully.

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Office Space NYC: Down Sides of Coworking Space

Flexible Office Space NYC

The coworking trend is evident. Walls and partitions tumble down in offices everywhere. Coworking spaces consist of renting a desktop in an open office space plan for a flexible time period. The space is shared by other professionals from varying professional backgrounds, such as artists, researchers and sales personnel, etc. The coworking trend has gained considerable momentum in the last decade as today’s work force has become increasingly transient and mobile.

As operation models vary, coworking space typically is appealing for work at home professionals, startup businesses,  independent contractors and traveling professionals. New York City is populated with virtual office space sharing arrangements. However, there are certain disadvantages and downsides to coworking. Here we discuss things to consider when deciding where to partner for flexible office space rentals.

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Trendy Branded Office Space: Good or Bad for Your Company’s Brand Image?

Office Space NYC

Branded office space is a rapidly expanding trend in the business world, especially for startups that need flexibility. It allows companies to avoid tying up their money in office space especially in the initial stages of their growth when capital is tight. Shared office space in New York City helps keep your business expenses down, while providing a professional space where you can meet your clients. In today’s mobile world, you can run your business from anywhere in the city, but you want to greet your clients at a polished-looking office space. You want New York office space that is conveniently located in a busy market growth area and also offers lease flexibility. The truth is that NYC office space is limited in the highly-coveted Manhattan real estate market. This has led to strong growth in branded temporary office space. You have to ask yourself are these branded workplace spaces beneficial to your company’s image?

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Why Collaborative Work Spaces Are a Good Idea

collaborative workspaces

Collaborative work spaces can bring the best out of your team. Studies have shown that collaborative work space environments can be time efficient and budget friendly. By enabling team members to work together on tasks, more ideation for everyday business obstacles can help save both time and money. Gone are the days when outdated cubicles were the norm. Today’s transparent open space floor plans help employees engage in spontaneous creativity in collaborative work spaces.

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