Subletting office space: everything you need to know

Do you have premises that you are not using to their full potential, or space that is too large for your current needs? Subletting may be the ideal solution for you. Whether you are a tenant looking to optimize part of your office space and get more out of your square footage, or a start-up seeking flexibility to quickly set up shop at a strategic address in Paris, subletting office space offers real opportunities.

But how does it work in practice? What are the rules, advantages, risks, and best practices for successfully subleasing commercial premises? How can you secure the agreement, avoid irregular situations, and prevent disputes? We tell you everything you need to know in this comprehensive guide.

What is subletting? Definition and how it works

Office subletting involves a tenant company renting part or all of its office space to another legal entity (the subtenant). In other words, the main tenant becomes the landlord to the subtenant, while remaining bound by its obligations to the owner of the premises.

This practice is governed by the initial commercial or professional lease, which must explicitly state that the lease is authorized for total or partial subletting. In some cases, it may also be subject to co-ownership regulations or building codes if common areas (elevators, reception, restrooms, emergency exits) are affected.

For companies in the process of growth, restructuring, or teleworking, subletting allows them to be part of a collaborative economy and flex office approach, by sharing square footage and services (cleaning, internet, reception, meeting rooms, etc.).

Is it legal to sublet office space?

Yes, subletting office space can be perfectly legal, provided that you comply with the legal framework governing commercial leases, the Civil Code, and the terms of the original lease.

According to Article L145-31 of the Commercial Code (often cited by the Court of Cassation), subletting is in principle prohibited unless agreed to by the lessor. In concrete terms:

• If the lease stipulates that subletting is authorized → it is legal, subject to compliance with the contractual conditions.
• If the lease prohibits subletting → any subletting exposes the main tenant to the risk of termination of the lease and possible eviction compensation.
• If the lease is silent → the owner's written consent must be obtained before any subletting.

In the event of non-compliance, the lessor may take extrajudicial action and request termination of the commercial lease, or even contest the rental value or claim costs.

What are the rules for subletting office space?

As mentioned above, subletting office space is subject to a specific legal framework and is based on several fundamental rules, mainly defined by commercial leases and case law derived from Article L145 of the French Commercial Code.

1) The landlord's consent (key rule)

The key rule when it comes to subletting is the landlord's consent. In practical terms, subletting must be expressly authorized in the initial commercial lease or be subject to subsequent written approval by the owner. Without this consent, subletting is considered irregular and may expose the main tenant to penalties or even termination of the lease.

2) Mandatory notification of the landlord

When subletting is permitted by the commercial lease, the main tenant must inform the landlord of the terms of the sublease: identity of the subtenant, duration of the sublease, amount of rent, and terms of occupancy of the offices. This obligation stems directly from the framework set out in Article L145, which aims to protect the rights of the owner.

3) Compliance with the intended use of the premises

The subtenant must occupy the offices in accordance with the use specified in the main commercial lease (e.g., strictly tertiary use). Any substantial change in the activity carried out could constitute a breach of the sublease rules and weaken the legal position.

4) A clear sublease agreement that complies with the legal framework

Although it is not always a formal legal requirement, it is strongly recommended that a written sublease agreement be drawn up. This document must comply with the legal framework of the main lease and specify the rights and obligations of each party, particularly with regard to charges, maintenance, and responsibilities.

5) Consistency with the commercial lease and the right to renewal

The sublease cannot exceed the terms of the main lease, either in terms of duration or in terms of the rights granted to the subtenant. It is also important to note that the subtenant does not have the right to renew the commercial lease: this right remains with the main tenant vis-à-vis the landlord.

In practice, subleasing is therefore based on a three-party relationship governed by these rules: the lessor, the main tenant, and the subtenant.

The different types of office subleasing

There are several forms of subleasing, depending on your needs and the layout of the space:

• Partial subleasing: the tenant keeps part of their office space and subleases the rest.
• Total sublease: the entire business premises are subleased.
• Temporary sublease: made available for a period of three years or less, depending on requirements.
• Coworking spaces: conversion to a flex office with several subtenants.
• Shared offices: pooling of square footage and services.

What are the advantages of subletting office space?

Optimization of space

One of the main advantages of subletting is the ability to make better use of your square footage. Rather than leaving part of your office space unoccupied, you can maximize its value by opening it up to a subtenant, particularly in the event of downsizing, teleworking, or internal reorganization.

Generate income and improve profitability

Subletting not only reduces the burden of rent, but also generates additional income. By subletting part of their office space, the main tenant can offset some of their expenses and thus improve the profitability of their real estate assets. This approach is particularly relevant for companies that want to optimize their budget without moving.

Increased flexibility

Flexibility is one of the major advantages of subletting, both for the main tenant and the subtenant. The former can more easily adjust the occupancy of their space according to their needs, while the latter often benefits from shorter commitment periods and more flexible terms than a traditional commercial lease.

Opportunities for collaboration

Beyond the financial aspects, subleasing can also create value on a human and professional level. Sharing office space with another company promotes exchanges, networking, and sometimes even partnerships, particularly in business districts or dynamic ecosystems.

What are the obligations of the primary tenant?

The primary tenant, as the “sublessor,” retains several responsibilities:

1) Comply with the primary lease

They must ensure that the sublease complies with the terms of the original lease.

2) Inform the landlord

If the lease so provides, they must communicate the terms of the sublease to the owner.

3) Ensure the premises are compliant

They remain responsible to the lessor for the condition of the offices, even in the event of damage caused by the subtenant.

4) Manage relations with the subtenant

They must ensure that the occupancy runs smoothly, that the rent is paid, and that the rules for use of the premises are respected.

5) Assume financial risks

If the subtenant does not pay, the main tenant remains liable to the landlord for the rent.

How to sublet an office (5-step method)

• Check the original lease

Carefully read the clauses relating to subletting.

• Obtain the landlord's consent if necessary

Send a written request to the landlord if the lease does not cover this.

• Define the subletting conditions

Set the duration, rent, charges, and rules for using the space.

• Draw up a sublease agreement

Specify the responsibilities of each party, the termination conditions, and the distribution of charges.

• Organize the occupancy of the space

Clarify access to meeting rooms, the kitchen, common areas, and included services.

How can you avoid the risks of subletting?

To secure an office sublease, it is advisable to:

• check that the lease allows subletting;
• obtain written consent from the landlord;
• draw up a detailed sublease agreement;
• align the term of the sublease with that of the main lease;
• include specific clauses on charges, maintenance, and responsibilities;
• establish clear rules for the use of shared spaces.

How can you avoid the risks of subletting?

To secure an office sublease, it is advisable to:

• check that the lease allows subletting;
• obtain written consent from the landlord;
• draw up a detailed sublease agreement;
• align the term of the sublease with that of the main lease;
• include specific clauses on charges, maintenance, and responsibilities;
• establish clear rules for the use of shared spaces.

How long does a sublease last?

There is no fixed legal term for an office sublease.

In practice:

• it can be very short (a few months) for temporary needs;
• it can last several years, as long as it does not exceed the term of the main lease;
• it is often more flexible than a traditional commercial lease.

One essential rule: the sublease cannot exceed the term of the main lease. If the main lease ends, the sublease also ends.

Potential disadvantages and risks

Legal risks

If subletting is prohibited by the lease, the primary tenant may face termination of the lease and financial penalties.

Managing relationships between occupants

Cohabitation requires good organization and clear communication, especially in open-plan offices.

Liability in the event of a dispute

The main tenant remains liable to the landlord, even if the problem is caused by the subtenant.

For companies looking for an office to sublet

Before renting your office space or moving into a sublet:

• Check the available space and number of workstations.
• Consider the location (offices in Paris, neighborhood, accessibility).
• Analyze the services included.
• Check the sublease agreement and legal compliance.
• Pay attention to the destination clause and the commercial register.

Deskeo and office subletting

At Deskeo, we help companies find solutions to optimize their workspaces, including office subletting. Thanks to our expertise, we can help you find the ideal office to sublet or occupy, whether you are looking for a coworking space, a private office, or a flexible workspace.

Would you like to discuss your project? Contact us.

What to keep in mind

Subleasing office space is a flexible and economical solution for companies seeking to optimize their real estate. Whether the goal is to reduce costs, gain flexibility, or share space, it can be an effective strategy (provided that the legal framework is respected and the relationships between the parties are properly secured!).