Should You Accept the First Interested Party for Your Sublease?

How long should you wait before subleasing – and what does waiting cost?

If you have office space you want to sublease, it can be tempting to hold out for the perfect tenant – one who will pay your asking rent and meet your expectations. But is waiting always the smart financial move? In many cases, it’s actually wiser to accept the first serious offer, even if it’s lower than what you had hoped for. Here’s why.

What does it cost to keep your space vacant?

To make a sound decision about subleasing, you need to look beyond potential rental income. The ongoing costs of keeping your space empty can be significant – and often underestimated. Here are the most common expenses you should factor in:

Base rent: This is typically the largest fixed cost and must be paid even if the space is unused.
Common area costs: Building operations, maintenance, and cleaning still apply.
Property tax: This continues to accrue whether the space is occupied or not.
Electricity and energy: Even with reduced usage, you’ll still have costs for heating, lighting, and security.

Vacancy costs add up quickly, and every month without a subtenant erodes your margins.

Why accepting the first interested party might make sense

Many businesses have a target for how much of their rent they want to recoup through subleasing. But the sublease market can be slow and unpredictable, and there’s no guarantee that a better tenant will show up later – or at all.

A concrete example illustrates this point:

Case: Subleasing 250 sqm

A business wants to sublease 250 of their 500 sqm of office space.
Sublease period: March 2025 to December 2026 (22 months).
Total fixed monthly costs: NOK 234,000 (for the full space).
The first interested party offers NOK 90,000/month and can move in by March.

Scenario 1: The business accepts the offer and earns NOK 1,980,000 over 22 months.

Scenario 2: They wait three months, secure a new tenant in July, and must charge at least NOK 110,000/month for the remaining 18 months to match the total income – assuming a tenant actually materializes.

Conclusion: The longer you wait, the higher the rent must be to offset the lost income.

Tips for businesses considering subleasing

Think holistically: Don’t focus solely on your ideal rent – calculate what waiting will actually cost you.
Be realistic: The sublease market is uncertain. You risk sitting with vacant space for a long time.
Prioritize stability: Securing a reliable tenant quickly gives you predictable income and relieves financial pressure.

Frequently Asked Questions About Subleasing

What should I consider before accepting the first interested party?
Assess both the financial offer and the move-in timeline. Even if the rent is lower than expected, it may be worth it if the tenant can take over quickly and reduce your ongoing costs. Also evaluate the tenant’s financial reliability and how well they fit the intended use of the space.

What are the risks of waiting for a better tenant?
You may incur significant costs while the space remains empty. There’s also no guarantee that a new prospect will appear – or that they’ll be willing to pay more.

How can I calculate whether an offer is good enough?
Do the math: Compare the monthly savings of having the space subleased versus the cost of waiting. Consider the length of the lease period, when the subtenant can move in, and your total potential earnings over time.

Can I set conditions or a trial period for the first subtenant?
Yes. You can include clauses in the sublease agreement such as limited terms, security deposits, or usage requirements. This gives you flexibility and protection if you want to renegotiate later.

What happens if I find a better tenant after signing an agreement?
Once a binding sublease contract is in place, it must be honored for its duration. That’s why it’s important to carefully assess the first offer and potentially build flexibility into the agreement upfront.

Conclusion

Waiting for the ideal subtenant might seem like a smart strategy, but the reality is that vacancy costs often outweigh the benefit of achieving your target rent. By taking a holistic view of your cost structure and potential income over time, accepting the first serious offer can often be the most financially sound decision.

About the Author

This article was written by Simen Strandos, advisor at Spacefinder. He specializes in helping small and medium-sized businesses find or sublease office spaces.