Sublease

A new trend in the office market. Sublease

Due to the new market conditions generated by the global economic and financial crisis, the companies’ first reaction was to “conserve resources” to overcome the crisis. That is why most companies have given up or postponed plans to expand their business.

In this context, a series of companies with a surplus of office space that will not be used for some time (minimum 1 year), are trying to optimize their costs by subleasing these spaces. Thus, in the market, besides the existing spaces, there were new spaces in the office buildings, usually small or medium, which are added to the current stock.

“What until now seemed a difficult option to find in office buildings, which rented at least one floor, is starting to become a viable option: small and medium spaces of excellent quality for SMEs,” says Irina Petrescu – ESOP partner. It is true that at this moment, everyone is very attentive to the budget, which begins to take precedence over the image criterion. The good news is that sublease spaces are interesting options from this point of view: the budget.

“Most sub-tenants can ask for rent below the landlord’s current price, because they pre-rented these spaces at an earlier stage, months before the building was handed over when rents were lower,” says Irina Petrescu – ESOP partner. Moreover, those who sublet can be more flexible than the owners in terms of the contract period, advance, guarantee, penalties, if they leave ahead of time, aspects that weigh heavily in the evaluation of a space by companies in the current conditions market, in which the future is so unpredictable.

“We believe that there will be more and more spaces in sublease office buildings in the next period, which will be very attractive options for tenants looking for quality space, but to keep the balance with the budget during this period.” declares Irina Petrescu – ESOP partner

At this moment, ESOP Consulting can offer such spaces to those interested; in class A buildings at prices between 18-20 EUR / sqm, in class B buildings between 15-17 EUR / sqm, and class C buildings between 10-14 EUR / sqm.