Navigating the Challenges and Opportunities in the Sublease Market

Legal and Code Assessment

Understanding the legal requirements of both the sublease and the master lease is essential—what obligations will you be inheriting, and how will they align with company needs. At the same time, building codes will dictate how the space can be divided, what types of occupancy are allowable, and how egress pathways must be arranged.

Security Review

Evaluating the physical and digital security infrastructure is critical to safeguard company assets. When it comes to security and subletting, you’ll need to consider both employees’ access to the office and how to protect intellectual property.

Brand and Culture Alignment

Just like a new lease, a subleased space presents the opportunity to craft a space that reflects a company’s identity. From signage allowances to the overall aesthetic, these are areas where brand can resonate throughout the space. Culture alignment also plays a pivotal role—consider whether the culture of the primary leaseholder fits with your own, and how any shared common areas might impact your company’s traditions, events, and general work atmosphere.

Furniture, Fixtures, and Equipment

Depending on the space situation and lease terms, it’s important to carefully review agreements on available furniture, fixtures, or equipment (FF&E) in the sublease. New FF&E can add significant cost to new tenants, with typically 30% of the budget for commercial interior fit-outs going towards these items.

Infrastructure and Operational Fit

Infrastructure and operational compatibility are just as important as look and feel. What mechanical and electrical systems are provided, and how will controls and utility costs be handled? Are your operating hours compatible with the building’s HVAC schedule, and do you have roof rights for HVAC equipment if needed? Consider whether the space’s infrastructure can accommodate your technology needs and how electrical changes might be managed.

Creating a Magnetic Workplace

Creating a sense of community was crucial to Verily’s success. We helped them invest in “magnetic” spaces like an employee café and a coffee bar—larger financial commitments, but essential for fostering connection and collaboration. These communal spaces bring the Verily team together, keeping their culture alive and thriving throughout the workday.

Through thematic design elements, the spaces also evoke a distinct sense of place, fostering a connection to the surrounding environment. Amenity destinations are strategically placed across floors to promote cross-interaction.

In the end, Verily’s new office space became more than just a place to work—it became a true extension of their identity and values. By carefully balancing the financial advantages of subleasing with thoughtful design solutions and FF&E reuse, we created a workplace that supports their culture, enhances collaboration, and secures their most valuable assets. This project highlights how, with the right design strategy and attention to detail, a sublease can be a successful choice for companies.