Subleasing – What is it?
Subleasing refers to an agreement made between a tenant of a
property, to a third party for a portion of the tenant's lease
contract. Ultimately, the tenant remains responsible for all their
obligations in the lease agreement but becomes a 'head
tenant' for the subtenant, who does not directly deal with the
landlord.
Rise in Subleasing as a result of COVID-19?
Recent data released by CBRE indicates that the number of
sublease spaces in Sydney CBD have hit a 10 year high as companies
reassess their current needs. Generally, sublease spaces are
reserved by tenants who expect their business to expand, but given
the current economic climate, it seems that many businesses are now
moving to subleasing the extra space in their office.
