Making Smart Sublease Decisions in The Hybrid Work Era: Pros & Cons for Both Sides
By Chris Rohrer, Broker | Rokos Advisors
As hybrid work and variable approaches to remote work have become a permanent part of the landscape in the Twin Cities and beyond, subleasing is now a more relevant—and complex—option than ever.
Whether you’re considering listing your space for sublease or evaluating a sublease as a way to reduce costs, there are critical factors to weigh on both sides.
If You’re Considering Subleasing Your Space (Sublessor)
Pros
Cost Recovery – Offsetting rent expenses can protect your cash flow, especially if you have excess space or workforce reductions.
Flexibility – Subleasing can buy you time to reassess your long-term space needs while fulfilling your original lease obligations.
Market Demand – In some submarkets and for specific space types, sublease demand can be strong, making it easier to find a subtenant.
Cons
Landlord Approval Required – Most leases require landlord consent for subleasing, which can limit timing and the selection of subtenants.
Potential Rent Gap – Current market conditions may lead to sublease rates being lower than your original lease rate, resulting in a shortfall.
Liability Retention – You remain ultimately responsible for lease obligations, even if your subtenant defaults.
If You’re Looking to Lease a Sublease Space (Sublessee)
Pros
Lower Cost – Sublease rates are often discounted compared to direct leases, providing an immediate cost benefit.
Furnished & Move-In Ready – Many sublease spaces come fully built out, with furniture and cabling already in place, saving time and money.
Shorter Terms – Subleases can offer flexible, shorter durations compared to traditional leases, ideal for businesses with uncertain growth
Cons
Limited Control – Sublessees are bound by the original lease’s terms, which may not fully align with their specific business needs.
Space Condition & Fit – Sublessees inherit the space as-is, which can be a poor match unless carefully vetted before committing.
Expansion & Renewal Uncertainty – Renewal rights or the option to expand are often non-existent or highly limited in sublease agreements.
How Rokos Advisors Can Help
Navigating subleasing opportunities or commitments requires more than just understanding the basics. Every lease, submarket, and business objective brings unique considerations. That’s where Rokos Advisors adds exceptional value.
Strategic Planning – We analyze your current lease terms, business objectives, and market conditions to craft a subleasing or subtenant strategy that aligns with your long-term goals.
Market Insights – Our team tracks the latest trends in the Twin Cities and nationally to help you price subleases competitively—or secure high-value sublease opportunities.
Risk Mitigation – We review all lease obligations and potential liabilities to minimize your financial exposure and protect your interests.
Negotiation Expertise – Whether you are subleasing space or securing it, we negotiate favorable terms that support your operational and financial success.
By partnering with Rokos Advisors, you gain a proactive advocate focused on maximizing your flexibility, cost savings, and workplace strategy success. Let us help you turn today’s shifting workplace dynamics into a strategic advantage.
Key Takeaways:
Subleasing can be a powerful tool to reduce costs or secure discounted space. However, risks and complexities require careful review and negotiation. Both sublessors and sublessees should consult experienced advisors.
At Rokos Advisors, we specialize in helping companies navigate these decisions to maximize value and minimize risk.
Are you considering subleasing your space? Connect with Rokos Advisors, so we can help you make the right move.
Rokos Advisors is an award-winning Minneapolis - St. Paul based commercial real estate/tenant representation firm specializing in helping businesses find the perfect office or industrial space for their company.