15 May 5 Ways Workplace Design Boosts Subleasing Success
In today’s busy hybrid work landscape, flexibility and adaptability aren’t just buzzwords, they’re a way of life. Being flexible and adaptable is not just key for employers and employees – but for the physical workspace itself.
CEOs and Facility Managers who are navigating this ever-shifting terrain now need to consider everything from incorporating portable furniture and the latest technology to subleasing under-used spaces to third-party tenants. The latter being the subject of this blog.
Subleasing offers a compelling solution for today’s CEOs and FMs – where the future of the office space is in constant flux and every other headline is about how to get employees to return to the workplace.
Subleasing gives firms the opportunity to maximize their real estate assets, generate revenue streams and really ‘walk the walk’ and ‘talk the talk’ when it comes to flexibility.
In this guide to the subject, we’ll look at the practical steps involved in subleasing office space and outline five key ways that strategically using office design – and workplace designers – will set you up for subleasing success.
Have you considered subleasing your space?
Subleasing is an often overlooked area for CEOs and FMs but it’s a space brimming with potential. By subleasing surplus square footage, CEOs can mitigate the operational costs of their real estate, enhance financial flexibility, and unlock capital for strategic investments. Moreover, subleasing offers a dynamic way for companies to scale their operations, according to their changing needs – whether that be downsizing or expanding.
An overview of the practical subleasing process
You’re a CEO or FM considering subleasing some of your workspace – what does the subleasing process look like? Here’s a 9-step overview:
- Reviewing the current lease agreement to determine if subleasing is permitted – paying close attention to any restrictions, requirements, or approval processes outlined in the lease.
- Evaluating the available space to see how much is available for subleasing.
- Identifying potential subtenants, using networking, advertising and real estate platforms.
- Negotiating the terms of the sublease agreement with chosen subtenant – covering rental rates, lease duration, shared amenities, and any other relevant provisions.
- Ensuring the terms are checked over and approved by legal and financial experts.
- Getting approval from your landlord or property management company before finalising the sublease agreement.
- Drafting the sublease agreement to outline the rights and responsibilities of both parties – covering rent payments, maintenance obligations, insurance requirements, and any other relevant terms.
- Executing the agreement with the sub-tenant.
- Managing the ongoing sublease relationship with a focus on open communication and on monitoring compliance with the agreement.
So that’s the topline on what you can expect from the process itself. But how and where does effective workplace design come into play, helping you get the best tenant and the best occupancy rates for your space? Let’s look at this in more detail…
5 ways workplace design will boost occupancy rates
1. By optimizing your layouts to create a more attractive proposition
As already discussed, you will need to assess your existing office space before embarking on the subleasing process to determine how much of it can be leased without disrupting current operations. But how do you get it right?
You will need to consider the design of the space you’re subleasing and the space you’re keeping – that is to say the layout and functionality of both and how they currently interact. Ensuring the space is efficient and productive for both parties is the goal. You should also consider bringing in tech solutions – such as video conferencing and hot desk apps – to enhance the spaces further.
A workplace design firm will offer expert guidance on the layout, functionality, and potential areas for subleasing. They can also help you cement your flexible work strategies by identifying the best areas to incorporate hot desking, tech and shared workspaces, and advising you on the best ways to prioritize collaboration, productivity, and employee well-being.
2. By attracting target tenants with next-level aesthetics
Once the sublease plan is in place, the office space may need to be redesigned to make it attractive to potential subtenants. This can involve reconfiguring the layout and creating must-have amenities – chill-out spaces to brainstorming hubs. Workplace design firms are experts in this area and will help the process by providing you with materials such as 3-D renderings and videos to share with your team and prospective tenants.
3. By boosting your marketing
Effective marketing of the space is crucial to attracting the tenants you desire and maximizing occupancy rates – and, as discussed above, using a workplace design firm can enhance this.
Design experts will help you create a compelling sublease package that includes visual presentations, virtual tours, and compelling design concepts.
With this package you can highlight the value proposition of your space, showcase its amenities, accessibility, and unique selling points. You can also highlight the benefits of subleasing – cost savings, flexibility, and access to premium amenities etc – to resonate with potential tenants.
This will then enable you to leverage digital marketing channels, networking platforms, and real estate partnerships to reach target audiences and generate even more interest.
4. By assisting with robust legal and compliance
Subleasing involves legal and compliance considerations that may impact the design of the space. Working with a workplace design firm will mean your redesigned space meets all regulatory requirements and lease agreements and cures any headaches before any have set it.
5. By delivering the expertise to improve tenant experience
The design of your subleased space should prioritize the tenant experience to attract and *retain* subtenants. This includes the ongoing considerations of comfort, aesthetics, technology integration, and flexibility.
Workplace design professionals will help you incorporate these elements into the design to create an environment that keeps on meeting the needs and preferences of your subtenants for an enhanced ongoing relationship.
In conclusion: subleasing the right way
In an era of rapid workplace change, subleasing an existing workspace emerges as a strategic imperative for CEOs.
By subleasing areas of their space, CEOs can unlock hidden value, enhance financial flexibility, and create dynamic work environments that inspire productivity, innovation – retain and attract talent.
While CEOs and FMs can go it alone, we believe collaboration with an experienced office design firm is instrumental in realizing the full potential of their subleased space.
Are you considering embarking on a change for your workspace? We’re experts in unlocking new possibilities for our clients and shaping the future of work through design.
To find out more about how we can help you and to request a free RI Workplace consultation, click here: https://calendly.com/riworkplacefreeconsultation/
