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Can sublease be a profitable business?

If we keep in mind that office premises that belong to class A are very popular today, then we can definitely say that the option with sublease is extremely effective in terms of profit. However, experts recommend considering it as a non-primary source of income, sublease cannot be the main income. You need to understand that with the help of sublease alone you can not guarantee a large income. If you combine sublease, supplementing it with some of the services that tenants need, providing them with premises for small areas, then you can guarantee a substantial profit.
When will sublease be effective?

It should be noted that sublease, as a way to earn money, is not very relevant when it comes to high-class buildings. For companies that occupy premises of this level, their image is very important, respectively, they rarely decide to go for such an option. Such firms will only act as a sublease in some cases. For example, when the premises are rented in order to expand the enterprise in the future, and it still does not need a certain part of the space. Such a business would be a good choice if it comes to large areas. Surpluses can be received by partners who have a joint business with the tenant.

Distinctive features that successful sublease firms have are the location near the city center, compliance with international standards, the provision of services, the availability of special rooms where you can hold seminars, meetings, conferences, and rent for a short time. The peculiarity of such firms is that the tenant does not remove the “squares”, namely, jobs. The price indicator is determined by the assortment, rental conditions, a certain area. The average cost is $ 1,500. As you know, in class A business complexes, this level does not exceed the figure of $ 800 / m. Of course, a double difference allows you to provide a good profit. The business looks like this: the company rents space from a thousand “squares” in business centers, after which they are divided into minimal blocks, a reception is organized, the necessary infrastructure is created, staff is hired, repairs are being carried out, and office space is being finished.

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