With work-from-home arrangements now squarely in the mainstream due to COVID-19, the market for office space is likely changed forever as companies realize they don’t need to invest in large physical locations. That could leave some landlords and tenants with excess space on their hands, which may lead to an increase in subtenants. But subleases have their own challenges, according to Harris Beach Partner Charles “Chip” Russell, head of the firm’s Commercial Real Estate practice.
Chip was interviewed on the subject by The Daily Record newspaper, and he pointed out some areas where subtenants need to be careful. For instance, the agreement in the main is between the building owner and the main tenant. If the main tenant defaults, in most cases, the subtenant has no right to the space, Chip said. “I don’t know if a ton of people think way down the road on this,” he said. Click this link to the Daily Record article.