Subleasing Heats Up: Critical Issues in Sublease Transactions

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By most accounts, subleasing activity has markedly risen during 2001 in Long Island. Some of the factors for this expanded activity are low vacancy rates for direct space, little new construction (particularly in Nassau County), reduced space needs due to corporate mergers and consolidations, and dot-com and telecom failures and/or cutbacks in planned expansion. Companies looking for new space in 2001 may ultimately enter into a sublease with a tenant rather than a direct lease with the building owner. A number of critical points must be considered in a sublease that is not present in a direct lease transaction.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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