Whether the company uses a commercial real estate agent or manages the subleasing itself, the rental price needs to be determined. What is the right rent for the premises being subleased?

Factors that influence the rent when subleasing

A good starting point is to get a clear overview of the costs associated with the company’s own lease. It is important to identify what the company itself pays for rent, common expenses, property tax, electricity, cleaning, and possibly the leasing of furniture and technical equipment.

The next step is to develop a leasing strategy. Who are the premises suitable for, and how should they be marketed to generate the most interest? Is the target audience narrow, or can the premises appeal to a broader range of tenants? At Scout Eiendom, we have found that many companies prefer to advertise the premises on www.scouteiendom.no, in addition to more traditional channels, to ensure wide exposure of the sublease property.

The company must also consider whether the premises are best suited for one tenant, or if it makes sense to divide the space for multiple tenants. One tenant can reduce administrative needs, while multiple tenants can generate faster income.

After choosing a strategy and defining the target audience, the company must also decide whether the premises should be leased furnished, and if meeting rooms and quiet rooms should be included in the agreement. It is also common to consider whether the sublessee should have access to their own social areas with a kitchen, or if the company’s shared areas should be used. The company’s own needs should remain central, but less flexibility may reduce rental income.

At Scout Eiendom, we often see significant differences in rent depending on whether the entire office space or just part of it is being subleased. In some cases, especially when the office space is under 300 sqm and the company wishes to vacate the premises entirely, it is sometimes possible to achieve higher rental income than the company’s own costs. This is due to the limited availability of small spaces and the fact that this target group values flexibility, even though it offers less predictability.

Conclusion

The discount on sublease properties depends on how flexible the company is willing to be, the length of the contract, the location, and how practical the premises are for subleasing. The size of the premises also plays an important role. For areas over 300 sqm, predictability is often more important than flexibility. In general, sublease properties are rented at a discount of -50% to an increase of +5% relative to the company’s own rental costs. Where one lands in this range depends on the factors mentioned earlier in the article