When times are tough, the way they are now, some companies find that they must reduce expenses. The fastest way to do this is to close offices and lay off staff.
When you close an office, you will frequently find that your lease does not let you just walk away with no repercussions. Most leases require that you pay rent until the end of the lease term (which could be years away). If you stop paying rent, your landlord will sue you for the rent for the balance of the lease term.
However, most leases will let you assign or sublet your space. If you can find another company who wants your office space and the landlord approves the new company, you won’t be sued for breaking the lease. You still will remain liable if the new tenant doesn’t pay but it will save you plenty of money until that problem happens, if it ever does.
How do you find this new company? Talk to a commercial real estate agent. The more time left on the lease, the more money you have at risk for breaking the lease.
What if you are looking for new office space – either because you are expanding or contracting? Also check out space that is being sublet. Plenty of companies are going out of business or just consolidating space so there are a lot of options out there that could offer you a very cheap rent.
Whatever you do, consult a lawyer before entering into a sublease. It is a much more complicated document that a regular lease so you need expert advice before you sign on the dotted line.
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