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You Should Know Before Selecting an Office Building
Tenants often measure poorly their own space requirements, which may change significantly due to the effect of the current economic situation or the strategy of the mother company. When bigger office spaces are released the best solution could be to sublease. At the same time it is worth to know that circumstances of subletting are often controlled and conditioned by the owner. In Western Europe the sublease rent practice is more popular than in the Central-Eastern European countries. The sub-lessee can take advantage not only from the favorable price but also of not having to commit themselves for at least 5 years in this uncertain market environment but only until the end of the remaining rental period. This is a great opportunity for those small businesses who do not want to commit themselves for a long period. It is important to know that unlike the general office market offers, these sublease possibilities are not publicly advertised but are only available through real estate brokers and advisers. The advisers, having extensive market knowledge, help to find the balance between the sub-lessor and subtenant, creating favorable contract conditions for both parties.
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The current excess supply in the office market gives a strong negotiating position to the tenants against the landlords. The proposed price should not mean the final contract price. The available discount rate depends on the size of the office space and on the rental length. These criteria and the price are inversely proportional, which means that the longer the rental period and the bigger the rental space is, the less the price/m2 will be.