When a company is considering subletting its office space, one of the most important questions is what kind of rental income can be expected—and how much of a discount is typically required compared to the original lease. This article provides an overview of the key factors that influence sublease pricing, and what is considered standard in the market.
What Influences the Rent When Subletting?
Before setting a price, it’s important to have a clear overview of all associated costs. These include:
-
Base rent and service charges
-
Property taxes
-
Utilities, cleaning, and other operational expenses
-
Leasing of furniture and technical equipment
The next step is to define a clear subletting strategy:
-
Who are the target tenants?
-
Should the space be offered furnished or unfurnished?
-
Will the sublease include access to meeting rooms or common areas?
-
Should the space be leased to one tenant or divided among several?
Flexibility is key. Offering shorter contract durations, furnished spaces, or shared amenities can make the property more attractive and reduce the need for large discounts.
Why Size Matters
Experience shows that subletting office spaces under 300 sqm can often generate higher rental income than the original lease—especially if the space is modern, flexible, and centrally located. This is largely due to high demand for small, move-in-ready offices.
Larger spaces, on the other hand, tend to attract tenants who prioritize predictability over flexibility, which may require offering a discount to secure a subtenant.
Typical Discounts for Subleasing
There is no universal discount rate, but based on industry experience (such as from Scout Eiendom), the range typically varies from:
-
50% discount for large or less flexible spaces with low demand
-
Up to 5% premium over the original rent for small, attractive, and in-demand spaces
Where your space falls within this range depends on location, size, standard, flexibility, and contract terms.
Frequently Asked Questions About Subletting
How much of a discount do I need to offer to sublet my space?
Discounts usually range from 0% to 50%, depending on demand, flexibility, and space size. Small, attractive spaces may be sublet at break-even—or even at a premium.
Can I sublet without the landlord’s approval?
In most cases, landlord approval is required. Check your lease agreement and always obtain written consent before entering a sublease arrangement.
What’s most important for leasing the space quickly?
A clear target group, competitive pricing, and professional marketing are key. Furnished, flexible spaces with quality photos are often leased more quickly.
Can I sublet only part of the office?
Yes, partial subletting is common and can increase rental income while reducing vacancy. However, it requires more administration.
What should be included in a sublease agreement?
It should clearly state the rent, duration, what’s included (furniture, shared areas, equipment), maintenance responsibilities, and any specific terms. Legal assistance is often recommended.
Recommendation
To make the most of your sublease process, we recommend:
-
Mapping all costs associated with the premises
-
Defining a clear subletting strategy and target audience
-
Considering professional marketing and advice through platforms like Spacefinder or commercial real estate agents
With the right planning and strategy, it is possible to minimize losses—and in some cases, achieve a positive return through subletting.
About the Author
This article was written by Simen Strandos, advisor at Spacefinder. He specializes in helping small and medium-sized businesses find or lease out office space.