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, not really. The reality is that not only is a sublease
transaction more complicated than a regular lease transaction, it
is much riskier than 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.
