is a lease, and the company, as a "subtenant", has the same obligations that a tenant has under a lease.
In either event, entering into a sublease
arrangement might be a sensible idea.
According to Studley's Insights report, "Subleases
Popular Amid NYC Tech Boom," authored by its chief economist Heidi Learner and research colleague Chris Volney, the focus on sublease
space by technology firms is creating unexpected opportunities for tenants across all industries while impeding demand for the direct office space controlled by many of Manhattan's largest landlords.
A confluence of contradicting factors have hit the office sublease
market in Manhattan, according to a recent report by Jones Lang LaSalle cited by Crain's, largely because of the strengthening direct-lease market.
Here are some essentials for a landlord to consider when working through a sublease
requires FM to make fixed, annual rental payments over both the primary term and (if exercised) the put renewal term.
The production about ballroom dancing, titled ``Shut Up and Dance'' starring Vanessa Williams and Kris Kristofferson, got tripped up because film producers wouldn't provide Airports Department officials with a copy of their sublease
with hanger tenants Syncro Aircraft Interiors.
The bonds are secured by an assignment of the lease, sublease
guarantees and leasehold mortgage to the trustee, a security interest in the construction fund, mortgage title policies, an assignment of the construction bonds and an assignment of the agency agreement.
Lastly, remember that in the large majority of cases, a sublease
requires the consent of the "master landlord" -- so your landlord, who is a tenant under a master lease, is obligated by the terms of the master lease to get the master landlord's consent, and that consent is an importnant pre-condition to the effectiveness of the sublease
Among 10 deals over 40,000 s/f that closed in the first two quarters are the Sumitomo Corporation's sublease
of 98,454 s/f at 300 Madison from the Canadian Imperial Bank of Commerce; Indeed subleased 49,536 s/f at 125 West 55th from MacQuarie Equities; and there were three deals in AXA Financial's space in 1290 Avenue of the Americas, including a 148,421 s/f sublease
by Morgan Stanley.
Data from Cassidy Turley shows that in November, the amount of available New York sublease
space -- usually 30 to 40 percent cheaper than space available for direct leasing -- hit 10.
The beauty of a sublease
situation that eventually involves lease termination is that it isn't really a gambling venture.