You need new or additional premises for your business and your
real estate agent finds you the perfect space for your needs at
below market rates. In your excitement at finding this great deal,
you initially gloss over your agent telling you that the premises
are only available as a sublet from the existing tenant of the
space and not a direct lease from the owner of the building. After
the initial excitement wears off, you think to ask if you should be
concerned about it being a sublease and not a lease. Surely it
can't be that big of a deal, right?
Well, it is. The reality is that not only is a sublease
transaction more complicated than a regular lease transaction, it
is a much riskier transaction for a subtenant than if it were
leasing premises directly from the owner/landlord. Let's
explore some of the reasons why that is and some of things that a
subtenant can try to do to minimize the risks.
