Subleasing warehouse space is not necessarily a sign that a company has overextended itself or is struggling to pay rent. In many cases, it is simply a smart real estate strategy.
A business may lease additional space to accommodate future growth but not need the entire facility immediately. Subleasing the unused portion can generate ancillary income and help offset occupancy costs until the company is ready to expand into it.
You may want to consider subleasing if:
• You have warehouse space that is currently underutilized.
• You have excess parking, outside storage, or truck-court capacity.
• Your growth plans have been delayed or changed.
• You want to reduce occupancy costs without relocating or giving up future expansion space.
Before moving forward, review your lease to determine whether subleasing is permitted and what landlord approval is required. You should also consider access, security, insurance, utilities, loading, parking, and whether the two operations can function safely and efficiently within the same property.
When properly structured, a sublease can turn unused space into income while allowing your company to retain the capacity it may need in the future.
If you have excess warehouse, parking, or truck-court space, an experienced industrial real estate broker can help determine whether subleasing is practical and how to position the opportunity in the market. Let’s talk if you are on the fence.