If you know anything about the New York City real estate market, you might think of finding flexible office or retail space as a fantasy. After all, it's a vast market sector governed by baroque laws and overseen by thousands of developers, agents, lawyers, and regulators, and the prices are some of the highest in the country. It's hardly surprising that some people hear about flexible options and assume they must be a trap.

It's true that sublets and assignments are full of pitfalls for the unwary. But they're also good options for start-ups, pop-ups, and temporary expansions. So here's what you need to know about getting flexible and short-term office space.

Subleases and Assignments: What's the Difference?

No New York landlord will rent to you directly in the short term. It's just bad business; if you rent an office for a month, they want assurance that someone else will be paying the rent the next month. So any space you rent short-term will already have a long-term tenant who will agree to let you use the space for a fixed length of time.

A sublease is a deal with the tenant. They will handle negotiations with the landlord, then sign an agreement with you that allows you the use of their space without ceding their rights or responsibilities to the building's owner. The downside of a sublease is that it might not allow major renovations or changes to the space. The upside is that you're not liable for any damage to the building that occurs while you're there. The tenant is.

An assignment is a deal with the landlord. The tenant will have to consent, but it's the landlord who will assign you the property for the term. You will then be the primary tenant, with all the same rights the normal tenant has — and the same liabilities if something goes wrong.

So What's the Point of Subleasing?

If subleasing has the same costs as leasing, but comes with extra restrictions and a looming deadline, what's the upside? Do people only choose it to avoid paying for damages in a disaster, or getting stuck with a big bill for rent if their business goes under?

That is part of it. Life is unpredictable, and business owners know that better than anyone. And there are a few situations when subleases are the best option: for a pop-up store or restaurant, for example, or an office for temporary workers on a short-term project. But the biggest draw for small businesses is that they're usually cheaper. Finding a small office in New York at a fair price can be hard, because developers would rather work in larger units. And New York is a seller's market if there ever was one. But with subleasing, you can take over part of a larger suite of offices. If you're a start-up, you can even negotiate shared access to resources like printers and scanners to save on start-up costs.

Like most aspects of real estate, subleases are complicated and dangerous things to negotiate on your own. Luckily, Broadway Suites is here to help. We sublease modern, practical office space at rates that make sense for small businesses. Contact us today to learn more.