While many businesses hope to stay in their Toronto office locations for the long term, there are always unforeseen instances that can pop up and change plans. Growth and downsizing are two of the most common reasons why a business would have to consider subleasing office space in Toronto.
When it comes to the idea of subleasing, many businesses don’t even stop to consider it an option. This can be a huge mistake, not to mention a very costly decision. Having a hefty lease or large amounts of unused space can cause a major drain on finances, not something any business wants.
While it may seem like your business might be stuck in a commercial lease, more often than not, these can be negotiated. That’s where FR Capital Realty can help work with you to sublease your Toronto office space with the best possible terms.
You want to approach any plan to sublease office space in Toronto with a strategy in place. Here are three major tips that will help understand the process.
Know Your Lease
The very first thing to do is check the current office lease your business is operating under. Some office leases might prohibit subleasing, or they might have specific covenants that detail what kinds of subleases are allowed. Many leases will allow some flexibility when it comes to subleasing office space, though a conversation with the commercial landlord will certainly go a long way in moving the process forward.
Ask Your Neighbors
In major cities like Toronto, office space for rent is always at a premium. So don’t forget to check in with the businesses that surround your space, there could be one or two who are looking to expand their footprint in the area and would be very happy subleasing your Toronto office space. Plus, as these businesses are likely already under contract with the same landlord, it could make for a very easy approval.
Do Your Due Diligence
When looking for tenants to sublease your Toronto office space, be sure to perform the necessary due diligence. Incoming tenants must not only be financially capable of taking over the lease, they should be financially stable as well, so take the time to follow up with bank and credit references. Additionally, know the rules and regulations of the building and communicate those with any potential tenants to ensure they will be able to comply.
A great tenant representative and agent who knows the particular ins and outs of subleasing office space in Toronto will be a vital ally when it comes time for your business to tackle this next step. Understanding what to look out for, and especially what to prepare for during this process can make it much easier to plan for the future.