If you are considering subleasing lab space for your life science company in New Jersey, you are not alone. Many companies prefer a space that has been previously built out and operating as a lab. Doing so saves time and expense because lab space is more expensive to construct than other types of commercial space. These types of spaces are either a direct lease with a landlord who owns the property, or a sublease from a tenant who no longer needs their space. Rather than taking a total loss, a tenant will try to sublease the space to mitigate the rent they are still liable for, and they then become a “sub landlord.”
Many life science companies are testing the waters for their new business venture, application, or product. Therefore, it may be more beneficial to have a shorter term lease commitment. Due to previous supply chain issues, there are longer than usual delays in receiving equipment. This may make a sublease a good option, as it is typically ready-to-go.
Naturally, there are both benefits and drawbacks to subleasing lab space of an existing GMP pharma manufacturing facility, chemistry, or biology lab. Let’s look at why you may or not not take a sublease for your New Jersey lab space requirement.
Benefits
- Immediate occupancy of finished space
- Reduced rental rate (typically)
- Shorter term commitment
Drawbacks
- As a sub-tenant you may not be able to remain in the space once the sublease term expires
- Adapting to existing conditions of this space may not be ideal
- There may not be any tenant improvement budget offered from the sublandlord
Every situation is unique, so you want to be certain that you can operate your business from this sublease location. The original lease should be reviewed by a professional before moving forward. It is important to fully understand all factors associated with this arrangement. These are significant considerations that will impact your business moving forward.
Please call for more information about subleasing lab space for your life science company in New Jersey.
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Jeanne Sabo-Rothenberg, CCIM
Commercial Advisor
eXp Commercial
Cell: (908) 377-9004
https://www.commercialrebroker.com/
jeanne.sabo@expcommercial.com