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Pritchard says sub-leasing is on the rise as a way of moving into fitted-out premises on a short-term lease and establishing a presence in some of the city's better buildings.
"It can be daunting for a newly established business to take on a direct lease, with usually a minimum term of six years. Under a sub-lease the tenant gets all the benefits of a top building, without the burden of being tied into a long-term lease.
"If a good relationship is established with a landlord, they are usually more than happy to accommodate the tenant's requirements if their business expands."
Pritchard says sub-leasing has a twofold effect. "For businesses with too much space, rent is a major overhead. With a slowed economy and tighter margins, sub-leasing unused office space can be an effective way to cut costs. And for businesses starting out, sub-leasing is a stepping stone during a dynamic phase of their growth."
"It can be daunting for a newly established business to take on a direct lease, with usually a minimum term of six years. Under a sub-lease the tenant gets all the benefits of a top building, without the burden of being tied into a long-term lease.
"If a good relationship is established with a landlord, they are usually more than happy to accommodate the tenant's requirements if their business expands."
Pritchard says sub-leasing has a twofold effect. "For businesses with too much space, rent is a major overhead. With a slowed economy and tighter margins, sub-leasing unused office space can be an effective way to cut costs. And for businesses starting out, sub-leasing is a stepping stone during a dynamic phase of their growth."
The truth is economy is bad and businesses are downsizing, leaving a lot of space to sublease.