As the Boston commercial real estate market deals with the effects of the coronavirus pandemic, subleases have become more relevant than ever. Since COVID-19 first hit Massachusetts earlier this year, a wave of sublease product has flooded the market. As a result, competition has intensified feverishly. But just because the sublease market is booming doesn’t mean there isn’t a suitable match for each property. Through a carefully-considered plan of marketing and promoting a space, subleases can serve as a worthwhile option for all parties involved.
Be Realistic
From the onset, clients should receive straightforward, honest information. This means receiving property education about what’s happening on the market, as well as learning about other competing subleases and “shadow spaces,” or subleases that are verbally anticipated to hit the market. In situations like these, the more information a client is given, the better. Having all parties on the same page is extremely vital, and it allows the sublease space to be competitively priced in order to drum up suitable activity.
Consider Your Resources
Before settling on a sublease, it’s particularly important to evaluate your resources and clarify what type of opportunity is the right fit. If a client is financially willing and able, reaching out to outside counsel is a tremendous tool to guarantee a fast, legitimate sublease deal. Whether it’s expediting lease negotiations or clearing away red tape, experienced professionals can streamline the process to ensure a deal is made in a timely manner. In a fast-moving market, it’s vital that no time is wasted when pursuing worthwhile opportunities. It can also be extremely helpful to bring on an architect who can run point on any test fits or TI work that may need to be done. When in doubt, consulting an expert is the best way to go.
To Market, To Market
Getting the word out about your sublease space is absolutely crucial. That’s why taking hold of all marketing opportunities, ranging from video to virtual tours, is an important step in the process. In cases where brokers or clients aren’t comfortable having formal broker open houses or walkthroughs, consider digital options like a Zoom call over a provided lunch. By taking them through the space virtually and discussing possible tenants for whom the space could be a good fit, you’re helping them to envision a successful sublease.
Communication is Key
Like in any realm of business, communication is absolutely vital in the commercial real estate world. Utilize weekly status reports to keep things like tours and proposals organized. When in doubt, remember that it’s always better to over-communicate with a client, rather than leaving things unsaid. This also goes for when there are no new updates regarding a specific sublease. Having a pulse on potential tenant requirements and the effort you’re putting in to get tenants through the door demonstrates how extensive your outreach is, and that’s guaranteed to be appreciated by all parties.
In an extremely challenging period like the one we’re currently experiencing, it’s important to remember that going it alone is rarely beneficial. Making use of the trusted team members around you is always the best bet. Because a tenant representative doesn’t have direct listings that would potentially compete with subleases they take on, they can solely focus on finding someone to take over the sublease space as soon as possible. This has repeatedly proven to be advantageous for all parties, ensuring a solid, worthwhile deal for everyone involved.