Why Office Subleasing Could Be Your Best Business MoveArticle
Office Subleasing – What, Why, and HowOffice subleasing is a practice where a tenant rents out a portion or the entirety of their leased space to a third party. It provides flexibility and financial relief for tenants who no longer need as much space or are looking to reduce costs.Subleasing can be a strategic move for businesses looking to optimize their resources, allowing them to adjust to changing needs without breaking their original lease agreement.The process generally involves securing permission from the landlord, finding a suitable subtenant, and creating a sublease agreement that outlines the terms and conditions of the arrangement.
Who’s Involved in Subleasing
A sublease agreement traditionally includes three parties:
The Landlord: Typically the building owner or manager who originally leased the property. Before subleasing, tenants must obtain written permission from their landlord.
The Tenant (or Sublandlord): The original tenant who becomes the sublandlord in the subleasing process. This party remains responsible for the terms of the original lease agreement.
The Subtenant: The new tenant renting office space from the original tenant. The subtenant makes payments and reports any issues to the original tenant rather than the landlord.
Background on Subleasing in the PhilippinesSubleasing is becoming increasingly popular in the Philippines, particularly in Metro Manila. The high cost of office spaces in prime locations has driven many companies to explore subleasing as a cost-effective alternative.In Metro Manila, businesses in sectors like IT, BPO, and startups frequently turn to office subleasing to establish a presence in prestigious locations without committing to long-term, high-cost leases. This trend reflects a global shift towards more flexible workspaces and financial strategies.Pros and Cons of SubleasingSubleasing offers several advantages and disadvantages, as highlighted by Tenant CS:
Pros:
Cost Savings: Subleasing can significantly reduce rental expenses.Flexibility: It allows businesses to adjust their space requirements as needed.Revenue Generation: For tenants with excess space, subleasing can generate additional income.
Cons:
Limited Control: The sublandlord has less control over the subtenant compared to a direct lease.Landlord Approval: Securing permission from the landlord can be a complex process.Lease Terms: The original tenant remains responsible for the lease terms, even if the subtenant defaults.5 Things to Note Before SubleasingBefore diving into subleasing, consider these key points:Landlord Approval: Ensure you have written consent from your landlord to sublease the space.Lease Terms: Review your lease agreement to understand the terms and conditions related to subleasing.Subtenant Vetting: Carefully screen potential subtenants to ensure they are reliable and financially stable.Clear Agreement: Draft a clear and detailed sublease agreement to avoid misunderstandings.Responsibilities and Liabilities: Be aware that you, as the original tenant, are still responsible for the lease obligations.Available Offices for Sublease
Office Floors in Bonifacio One Technology Tower
WorkstationFloor Area: 1,554 sq.m. per floorLocation: Bonifacio One Technology Tower, corner of 31st Street and Rizal DriveAvailability: For subleasingWorkstationFeatures and AmenitiesWorkstations:Capacity for over 250 agents19 team leadersRooms:Training Rooms on both floorsConference Rooms (12-seater and 8-seater)Critical Rooms for UPS and IDFMale & Female Nap RoomsPantry with sink, cabinetry, and stockroomClinicNOC RoomOperational Details:24×7 operation100% backup powerData StorageNetwork Infrastructure:Pre-equipped with network infrastructureSupported by PLDT, Globe, and ConvergeLocation HighlightsAccreditation: PEZA-accredited buildingProximity:Near Burgos Circle ParkClose to St. Luke’s Medical Center BGCAccessibility:Accessible via Kalayaan Flyover to 32nd Street from Makati CBDDesigned for ProductivityMeticulously Designed Spaces:Catering to dynamic and expanding workforceEnsuring productivity and collaboration
Office Floors in BGC Corporate Center Two
Design: Tailored for a Fortune 500 shared services firmManagement: Managed by Instant GroupSublease Terms: Available for 18 to 36 monthsAccreditation: PEZA-accreditedTenant: Single Fortune-500 tenantBuilding Grade: New, secure Grade A (completed in 2021)Location: Along 5th Avenue, BGCLocation HighlightsProximity:Located at the heart of the city’s vibrant shopping and dining blockDirectly across from Shangri-La the Fort and Bonifacio High Street Central SquareShort walking distance to numerous dining optionsAccessibility:Accessible via the North Route of the BGC Bus, the district’s internal public transport systemFloor Details10th FloorFloor Area: 1,419.72 sq.m.Workstations: 227 desksPantry & Collaboration Area: 50-seat capacityMeeting Rooms / Executive Rooms:1 x 8-pax5 x 4-paxConference Room: 1 x 15-paxRecreation Room: K-Pop RoomOther Areas:2 x 2-pax huddle rooms2 soft seating boothsClinicHub room with server rack and UPS11th FloorFloor Area: 1,417.72 sq.m.Workstations: 227 desksPantry & Collaboration Area: 50-seat capacityMeeting Rooms / Executive Rooms:1 x 8-pax5 x 4-paxConference Room: 1 x 15-paxRecreation Room: Art RoomOther Areas:2 x 2-pax huddle rooms2 soft seating boothsMother’s roomHub room with server rack and UPS Laws on SubleasingIn the Philippines, subleasing is governed by specific legal requirements. Tenants must obtain written permission from their landlords before subleasing.Additionally, the terms of the sublease must not contradict the original lease agreement. Failure to comply with these regulations can result in legal disputes and potential eviction.Tenants should also ensure that the sublease agreement clearly outlines the responsibilities and rights of all parties involved to prevent any legal complications.Contact us to learn more about how we can help you with your office subleasing journey today! You can also follow our Instagram @santosknightfrank to see more property listings to lease.
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The world of real estate can be a difficult place to navigate. Whether property is your investment or a tool that drives your business success, you need a partner who can guide you in every step of the way.Since 1994, Santos Knight Frank has been guiding Fortune 1000 companies, BPOs, private clients, and institutions in all facets of real estate. We advise companies on their best office, retail, and industrial location, oversee commercial fit-out projects, and manage facilities. We have facilitated over 4 million sqm of office transactions on behalf of clients and managed over 40 million sqm of real estate under our property & facilities management arm.Our residential brokerage platform and wide collection of bespoke homes allow our private clients to buy, lease, and sell properties within their budget, timeline, and lifestyle.For landlords and investors, we provide valuations and appraisal, consultancy and research, sales and leasing, and property management services across the Philippines.Santos Knight Frank is part of the global Knight Frank network of over 384 offices in 51 markets, including the strategically important U.S. partnerships with Cresa (commercial real estate) and Douglas Elliman (residential real estate).We are locally expert and globally connected, end-to-end and best-in-class – as any great partner in property should be.
