A few months ago I was approached by one of my oldest clients looking for a Dallas sublease. They were looking for a relatively modest sized space. The total square footage needed to be no more than 3,000 rentable square feet. To complicate matters they also wanted a one year lease.
This client is presently located in an AA office building along Central Expressway. Their lease is ending in May. They need a commencement date of June 1. This transaction created many obstacles that I needed to guide my client through and I thought I would write about these issues.
Dallas Sublease Space
A sublease is not as easy as it looks. The first step and easiest is finding Dallas sublease space that is available in the marketplace. There are many sources for this information. I like to use either CoStar or Xcellegent. I also receive ten to twenty emails from various brokers every morning listing. I find that these three sources generally give me the information that I will need. However I also connect with the many brokers that I know to be sure I haven’t missed any opportunities.
I found three spaces that were in the general geographic are that would satisfy my client’s requirements. The problem would be the lease term. A Dallas sublease is generally commences when the Sublessor vacates the space and the master leave terminates. My client needed a sublease that commenced on June 1 and for a one year term.
Most smaller subleases either are terminated by the landlord or the tenant goes bankrupt before the term expires. Therefor there are not a large amount of these subleases in the Dallas office market. I was able to negotiate a sublease with the precise commencement date and a one year term. Now the executed sublease was presented to the landlord for approval.
This is when the sublease could potentially be denied or the master lease terminated. Even though a sublease is signed by the subtenant and sublessor the sublease isn’t complete. The landlord must approve the sublease. In most cases the sublease will be approved. However, there are times when it will not be accepted and the sublessor’s lease could be terminated.
My client’s sublease was approved today. I am happy to report that they have a one year Dallas sublease in a AA class office building. The rental rate is fifty two percent the asking rental rate of the building. They will be able to enjoy this excellent rental rate for a years time. Then they will occupy their permanent office space.
When a tenant is looking for effective tenant representation it is important that they are working with an office broker that knows the market. While many brokers specialize in direct leases there are times that Dallas sublease experience is helpful. We work with all types of office leases.
Subleases take skill and experience to locate and more importantly negotiate the best terms and conditions for an office tenant. Don’t fool yourself. Attempting to negotiate the sublease waters alone is dangerous. Work with a qualified profession Dallas tenant representative.