What to do when you no longer need your office space – options for tenants

Do you have office space you no longer need? This article gives you an overview of the options available to you as a tenant.
Starting the process of getting rid of a major obligation can feel daunting—you might not know where to begin, which can easily lead to inaction or procrastination.

When needs change – What now?

Office needs can change for several reasons:

Downsizing or cost reductions
Increased use of remote work and flexible arrangements
Relocation or co-location
Changes in organizational structure

Regardless of the reason, it’s important to start the process early. The earlier you act, the more room you have to maneuver—both legally and financially.

Talk to the lessor – The first and most important step

Before considering your options as a tenant, you should always contact your landlord. Even if reaching out may feel intimidating, an open and professional conversation can open up more possibilities than you might expect.

Most landlords understand—and are accustomed to—the fact that a tenant’s needs may change, and they are often solution-oriented. By being honest and clear in your communication, you can work together to find arrangements that benefit both parties. For example, it’s not uncommon for a landlord to have another tenant in the building looking for more space, or to have another interested party waiting in the wings.

Possibilities for renegotiation, early termination, or temporary solutions

A landlord may also be open to:

Renegotiating the lease agreement
Early termination in exchange for compensation
Temporary solutions such as reducing space or sharing the premises

If the landlord is not open to any of the above, you usually need their consent—according to your lease agreement—before subleasing or transferring the lease can be carried out. This again highlights the importance of good communication with the landlord.

Tenant options

Sublease – Renting out the space to someone else

One option many consider is subleasing—that is, as the tenant, you rent out your office space to another business. Subleasing means you retain responsibility toward the landlord, but a new party uses the space and pays rent directly to you.

Advantages and Disadvantages of Subleasing

Advantages:

Reduced costs
Flexible short-term solution

Disadvantages:

You remain primarily responsible to the landlord
Risk of default by the subtenant

When a company considers subleasing, a key question is what rental income can be expected—and how much of a discount is common compared to the original rent.

Lease transfer – Handing over the agreement to a new tenant

A more permanent option is lease transfer—where a new party takes over the contract in its entirety. A lease transfer means the new tenant assumes all your rights and obligations, and takes over the lease with the landlord’s approval.

How to find a new tenant

Use online platforms such as Spacefinder, real estate agents, or your network to market the space. A strong presentation and proper targeting increase the chances of a quick takeover.

What should you consider before deciding?

Timeline

The choice between subleasing and transferring often depends on how much time is left on the lease. Subleasing is usually most sensible when there is little time remaining and you need flexibility, while transfer works better if several years remain and you want to fully exit the lease.

Overview:

Time left	Recommended solution	Comment
< 12 months	Sublease	Less administration, quick solution
1–2 years	Depends on situation	Sublease offers flexibility; transfer may be possible
> 2 years	Transfer	Ends obligations, especially for permanent changes

Are there options or clauses you can use?

When your office needs change, check whether your lease contains options or clauses that give you flexibility. Common examples include:

Option to extend
Right to sublease
Early termination clause
“Break clause” with conditions

By knowing and understanding these contract terms, you can potentially save both time and money when winding down or changing your office use. It may also be worth involving an advisor or legal expert to assess your rights and how best to use them.

Costs, risks, and obligations

When deciding what to do with office space you no longer need, it’s important to understand both the financial consequences and legal obligations tied to each option. If you end the lease early, you may be liable for the remaining lease term, restoration of the premises, and any breach-of-contract costs.

Subleasing or transferring the lease can reduce expenses, but you still remain primarily liable to the landlord if the new occupant defaults. Leaving the premises vacant until the end of the contract is often the most expensive option, while subleasing requires more administration and legal accuracy.

It is therefore crucial to evaluate both short- and long-term costs, as well as risks and responsibilities, before making a final decision.

Frequently Asked Questions (FAQ)

What’s the first thing I should do if I no longer need my office space?

The most important first step is to contact your landlord. An open and professional dialogue can open up several possibilities, such as renegotiation, early termination, or flexible solutions.

Can I sublease my office space to another business?

Yes, subleasing is a common solution, but you usually need the landlord’s consent. Remember, you remain responsible to the landlord, so it’s important to secure a solid agreement with the subtenant.

What’s the difference between subleasing and lease transfer?

Subleasing means you rent the space to someone else but remain responsible. Lease transfer means a new tenant takes over the lease entirely—with the landlord’s approval—and you are released from responsibility.

How can I find a new tenant for my office space?

You can use platforms like Spacefinder, real estate agents, or your own network to market the space. A professional listing and proper targeting increase the likelihood of a quick takeover.

What costs and risks should I be aware of when ending a lease?

Ending a lease early may leave you liable for remaining rent, restoration, and breach costs. Subleasing can reduce costs but still leaves you responsible if the new user defaults.

About the Author

This article was written by Simen Strandos, advisor at Spacefinder. He specializes in consulting and helps small and medium-sized businesses find or rent out office space.