It is a common situation for growing businesses. You signed for the right amount of space at the time, but now desks sit empty for much of the week as working patterns evolve. Whether your team has shifted to hybrid working or simply outgrown the original layout plan, unused space can start to feel like wasted cost that quietly eats into your monthly overhead.
Naturally, the question follows: can you sublet part of your office to another business and recover some of that expense? The short answer is sometimes yes, but it depends on several legal and practical factors. Before you make any decisions, it helps to understand how subletting works, what your lease allows, and what day-to-day implications might arise.
Check What Your Lease Actually Says
The first step is always your lease agreement, as this document sets the rules you must follow. Not all commercial leases allow subletting, and many include specific conditions that restrict how and when you can do it. Assuming you can sublet without checking can lead to serious complications, including breach of contract.
Most leases include a clause covering “alienation”, which relates to assigning or subletting the property to another party. In many cases, you will need the landlord’s written consent before proceeding, even if the clause appears permissive. That consent cannot usually be unreasonably withheld, but it may come with formal requirements and timelines.
It is also worth noting that some leases prohibit subletting part of the space altogether. Others may allow it but only under strict conditions, such as subletting the whole office rather than individual desks or rooms. Reviewing the fine print early with a solicitor can save time, protect your position, and avoid disappointment later.
Understand the Different Types of Subletting
Subletting is not a one-size-fits-all arrangement, and the structure you choose matters. There are several ways businesses decide to share unused space, depending on their lease terms and operational needs. Each option comes with its own legal, financial, and practical implications.
1) Subletting the Entire Office
In this arrangement, you temporarily move out and allow another business to occupy the whole space for an agreed period. You remain legally responsible for the lease and rent payments to the landlord, regardless of what the subtenant does. This is often used when a company downsizes or relocates before its lease ends but cannot exit entirely.
This approach can provide meaningful financial relief, particularly for longer remaining lease terms. However, it requires careful vetting of the subtenant to minimise risk. If they fail to pay or breach terms, you are still liable, so clear legal agreements are essential.
2) Subletting Part of the Office
This involves leasing a defined portion of your office, such as a separate room, suite, or floor within the premises. You continue to operate from the remaining space while sharing common areas such as kitchens or meeting rooms. It is a popular solution for businesses with surplus desks or underused breakout areas.
However, not all landlords permit part subletting, especially in traditional commercial buildings. You may also need to consider practical matters like security, access control systems, and how shared facilities are managed. Clarity around responsibilities, cleaning, and utilities helps prevent misunderstandings.
3) Licensing Desk Space
Some businesses use licence agreements instead of formal subleases to create more flexibility. This is common when renting out a few desks or coworking-style areas on shorter, rolling terms. It can be simpler and more adaptable than a traditional sublet structure.
A licence typically offers less security to the occupant but more flexibility to you as the primary tenant. It can work well for short-term arrangements, project teams, or collaborative partnerships. Legal advice is still recommended to ensure the arrangement aligns with your lease and does not inadvertently breach its terms.
Get Landlord Consent Early
Even if your lease allows subletting, landlord approval is usually required before any agreement is signed. Approaching this conversation early shows professionalism and reduces the likelihood of tension. It also gives you time to address any conditions they may impose without delaying plans.
Landlords may request financial information about the proposed subtenant as part of their due diligence. They want reassurance that the incoming business is credible, financially stable, and unlikely to cause issues within the building. In some cases, they may require references, accounts, or even a rent deposit.
You may also be responsible for covering the landlord’s legal and administrative costs connected to granting consent. Factoring these expenses into your decision helps you assess whether subletting remains commercially sensible. Transparency and open communication on both sides tend to lead to smoother outcomes.
Consider the Financial Pros and Cons
Subletting can offset rental costs and improve short-term cash flow. However, it is not always pure profit once all associated costs are considered. You remain responsible for the primary lease, including service charges, insurance contributions, and other obligations.
Here are key financial elements to review carefully:
1) Rent Recovery
How much of your monthly rent can realistically be covered without underpricing the space? It can be tempting to set a lower figure simply to fill the space quickly, especially if cash flow is tight. However, pricing too low may undervalue your office and make the arrangement less worthwhile over time.
Researching comparable local office rates can help you strike the right balance. Consider the condition of your space, its location, and what amenities are included in the price. A fair, market-aligned rate improves your chances of attracting a reliable occupier while protecting your financial position.
2) Service Charges and Utilities
Service charges and utilities are often overlooked when calculating potential savings. Even if you recover part of the rent, you may still be responsible for the full service charge under your primary lease. Clarifying how these costs will be shared is essential before any agreement is signed.
You may choose to divide costs proportionally based on floor area or number of desks used. Alternatively, you might agree on a fixed monthly contribution to simplify administration. Either way, the arrangement should be clearly documented to avoid disputes or confusion later.
3) Fit-Out Costs
Subletting part of an office often requires physical adjustments to the space. You may need to install partitioning, adjust layouts, or create clearer separation between teams. These changes can improve privacy and professionalism but come at a cost.
It is important to assess whether the expected rental income justifies the upfront investment. Temporary solutions may be more cost-effective if the arrangement is short term. Planning the layout carefully can help you avoid unnecessary expense while maintaining a productive working environment.
4) Legal and Professional Fees
Legal and professional fees can quickly add up during the subletting process. You may need a solicitor to draft or review agreements and ensure compliance with your lease terms. In many cases, you will also be required to cover the landlord’s legal costs for granting consent.
There may also be surveyor fees, referencing checks, or administrative charges involved. Factoring these expenses into your calculations provides a more realistic picture of the overall benefit. Understanding the full financial commitment upfront helps you make a more confident and informed decision.
Each of these elements deserves thoughtful analysis rather than rough estimation. A detailed cost breakdown will help you determine whether subletting genuinely improves cash flow or simply redistributes expense. Short-term gain should not create long-term complexity or financial strain.
Think About Practical Day-to-Day Impacts
Sharing office space changes the working environment in subtle but important ways. Even if the arrangement looks straightforward on paper, daily operations can feel different once another team is present. It is wise to consider culture, compatibility, and working rhythms.
Ask yourself whether the other business aligns with your brand and professional image. Noise levels, client visits, meeting room usage, and data security protocols can all affect your team’s experience. Clear boundaries and written expectations help maintain professionalism and avoid friction.
You should also review building rules, compliance obligations, and insurance coverage before proceeding. Public liability, access hours, alarm codes, and health and safety responsibilities must be clearly defined. Planning these details in advance prevents awkward conversations and operational disruption later.
Explore Alternatives to Subletting
Subletting is not the only solution to unused space, even if it seems the most obvious. Depending on your circumstances, there may be simpler or more flexible options available. Sometimes the better question is whether your current lease still suits your business model.
For example, you might negotiate a lease regear with your landlord to reduce space or amend terms. This could involve downsizing within the same building or adjusting the lease length to regain flexibility. It may provide relief without the complexity of managing another occupier.
Another option is relocating to a flexible workspace provider that offers scalable solutions. Serviced offices and managed spaces allow you to increase or reduce space as your team changes. This reduces the risk of paying for square footage you no longer use.
Plan for the Long Term
Before committing to a subletting arrangement, think carefully about where your business is heading over the next few years. Growth plans, hiring forecasts, and operational strategy should all inform your decision. What feels surplus today may be essential tomorrow if recruitment accelerates.
A short-term fix should not limit future flexibility or strategic direction. Consider break clauses, notice periods, and whether you might need expansion options later. Keeping room for change is particularly important for startups and scaling firms.
Ultimately, your office strategy should support your wider business goals and culture. Space should enable collaboration, productivity, and growth rather than create friction. Any arrangement that complicates that deserves careful scrutiny before you proceed.
Summary
Yes, you may be able to sublet part of your office, but only if your lease allows it and your landlord agrees in writing. It can ease financial pressure and make better use of unused space, yet it introduces legal, financial, and operational responsibilities. Careful planning, clear agreements, and a realistic assessment of costs are essential before moving ahead.
For many businesses, the underlying issue is not subletting itself but flexibility. If your space no longer fits how you work, it may be time to rethink your office solution altogether. Quintessential Offices provides flexible, centrally located workspaces designed to grow and adapt with your business needs.
If you are reviewing your current office arrangement or considering a move to something more adaptable, speak to the team at Quintessential Offices. We can help you find a workspace that fits how you operate today while giving you room to grow tomorrow.
