The practice of a tenant transferring a portion or all of their leasehold interest in a commercial space to a third party for a specific period is a common real estate strategy. For instance, a business occupying a large office might transfer a portion of its unused space to another company. This arrangement creates a contractual relationship between the original tenant and the new subtenant, while the original lease agreement with the property owner remains in effect.
This strategy offers flexibility for businesses seeking to optimize space utilization and control costs. It allows companies to downsize without breaking their lease, generate revenue from unused space, or test new markets with minimal financial risk. Historically, this type of real estate transaction has provided opportunities for smaller businesses to access desirable locations and establish themselves within established commercial districts.
