Subleasing space can present a very exciting opportunity for a business in NYC. Many times, a tenant will sublease a portion of their space, and in doing so, prices can be significantly cheaper than the standard market rate for u2018directu2022 space in the same building.However, there are a number of things to watch out for when considering a sublease:Arranged Occupancy - oftentimes, subleased space is only available under u2018arranged occupancy.u2022 This means that there are a number of things that need to be completed before a prospective tenant can actually occupy the space in question. In the case where the overtenant is moving out from most or all of the space, they have to secure a new location before you can actually sign the sublease and move your business in. This can have a very negative impact on your business operations if delays result from this search. Many times, they also need to receive consent from the landlord before undertaking this process. This can also cause significant delays.Lack of Flexibility - Because you are subletting space, you automatically inherit the overtenantu2019s lease, or the u2018overlease.u2022 This results in a lack of flexibility for the subtenant to negotiate various items on the lease. One of these is the right for the subtenant to sublet themselves. This can sometimes come very much in handy, so you should do an assessment beforehand if this is something that is important to you.Risk of Default - The financial state of your sublandlord will have a great impact on your business. If they go into default, as a subtenant you have no right to attorn, and you may lose the space in the interim.Holdover Clause - In many cases, subleases are part of a larger portion of space. If a holdover clause exists on the larger part of the space, it automatically transfers over to your portion as well. This can prove to be a liability. Basically, a holdover provision states that should the tenant remain in a space after the lease expires, the landlord has the right to demand certain costly penalties. Not fun stuff.Drop Dead - Every tenant must get consent from their landlord before subleasing their space. This process can take a long time and it is critical that you bring this up early on in considering subleased space. You must request a Drop Dead Date, beyond which you have the right to cancel the lease at your will. Typically, the standard for this period is 30 days from the execution of the lease.Timing - Additionally, subleases tend to be for shorter terms, because it is usually connected to the expiration date of the overtenant. If you are looking for something closer to 10 years, or as a main office/headquarters, a sublease may not be the best option for you. You will want something with more flexbility and stability.These are a few of the considerations of subleasing - there are certainly more.Overall, what you will lose in terms of a direct relationship and negotiating leverage with the landlord, may not be worth the cheaper price. However, if done correctly and carefully, and if you work through a tenant-broker to guide you through these considerations, subleasing can present the perfect opportunity to get a space for a shorter period of time, for a project in the area, or whatever it may be - and at a considerable discount.Looking forward to helping anyone out if there are questions!-Daviddreich@normanbobrow.com