Question about tenants sub-renting portions of their space (retail, warehouse or mixed-use)
Over in r/smallbusiness a few of us have commented that we are interested in being able to sub-rent small portions of our leased space to other related small businesses.   It doesn't seem to be very common at all, though, so we haven't had anybody chime in to outline their experiences doing it.  I'm wondering if that might be because this kind of thing is restricted by local zoning or leasing laws?

A couple examples to help explain our idea:

In some localities hair dressers are required to "rent a chair" from the salon they work in.  I sounds to me like those hair dressers are independent contractors rather than employees.  This is a common scenario but we're thinking it could be expanded to other businesses, like...

I currently have an eCommerce shop that sells safety products for dogs.  A lot of my products require the customer to do some training with their dog to teach the dog to tolerate the product (car harnesses, muzzles, etc.) so some kind of partnership with local dog trainers seems like a natural fit.  I also know some of my local dog trainers are always looking for space to use for classes but they can't afford their own lease.  If I moved my shop out of my house and into commercial space, I could offset my lease expense by renting small portions of it out to a few dog trainers.  Or I could allow customers to do by-the-hour rentals on a small portion for parties.  

So to your knowledge is there a really good reason why this isn't more common or is it just not customary?
[{"id": "ez9uwoz", "text": "What you are describing doesn\u2019t sound like a sublease . . . unless each dog trainer and/or owner becomes a permanent sub tenant. . . this sounds more like what you are describing with hair salons where the business model is earn income by charging to use your space, thereby not needing the landlord to approve anything.", "replies": [{"id": "ez9ybu3", "text": "Yes, it's like the hair salons.  I think.  But not being knowledgeable in commercial real estate I suspected that I was oversimplifying like crazy.  So any ideas or speculation on why this isn't more common outside of salon businesses?", "replies": [{"id": "eza23ct", "text": "half the people telling you they would rent space are about to offer you $20 for an entire night and leave your space filthy and require you spend half a day fixing/cleaning it, will totally bail when their excuse of \"if i just had a space\" is called out, or they are about to ask you to just donate space because it will be good exposure for your business and they are bringing in all kinds of clients who might buy your safety products so they shouldn't really have to pay.\n\nMeanwhile you just started a 5 year lease and spent 25k making a dog friendly space etc that needs to be paid for somehow", "replies": [{"id": "eza6cd1", "text": "Are you basing this on your experience with salons?  Because it sounds to me like you're throwing out worst case scenarios that assume we won't screen the people we sub-lease to or sign contracts.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ez9ytor", "text": "I\u2019m not sure how *uncommon* it is actually. \n\nFew examples off the top of my head: \n\nYoga joint rents out the studios to instructors\n\nNail salons (like hair salons)\n\nDoctor offices (main dr has lease, other doctors \u201crent\u201d exam rooms)\n\nOf course, wework and other office co-sharing platforms", "replies": [{"id": "ezacltn", "text": "Thanks, I had no idea that this was done in all those types of business.  It gives me hope for the future growth of my business!", "replies": [], "depth": 2}], "depth": 1}, {"id": "ez9z8n9", "text": "From a technical side I'd agree with /u/SF_Lady that sublease clauses wouldn't really generally be an issue on this if you stick to your use, though you should be clear about your intentions and make sure your use clause indicates you will be renting space out in short terms.  What you describe isn't odd.  Nail salons, beauty salons, real estate offices (sometimes), restaurants (you'd be surprised how many kitchens get leased out for catering etc), maker spaces, convention/reception center type spaces, etc etc all do this and the list goes on.  Some bars by me get rented for art galleries etc.  \n\nIt is common and happens all the time.  It may not be common in your space because someone (you in this case) is going to have to sign a long term lease, make improvements, pay utilities etc for a space it sounds like you don't need, all for the hope that a bunch of people who can't afford their own space will pay you to use yours.  That may be a viable business plan, but it sounds like you are kinda wedged in here hoping they will pay for your space so you can afford it too.  Compare your situation to someone who shows up and says \"yeah I'm a dog trainer.  I will use this space about 80% of the time.  Here are 3 years of fiscals etc.  The other 20% when I don't need it I'll probably rent it to some business associates for the same purpose\".  That might be an ok tenant.  Consider another that shows up and says \"We do hourly rentals of flex space.  Sometimes its MLMS, sometimes dog trainers, sometimes charities need a place to stage fund raisers, we don't really care but we have 3 locations doing this making money and want more\".  Yeah that guys going to get some attention too.  Now you show up and say you have a ecommerce business (what does this mean?  Do you have inventory?  do you ship?  how will you physically use this space?) and don't really \"need\" space but could if your buddies chip in to rent it sometimes to do their dog related things?  I mean you just sound like a credit risk, business risk, liability risk etc.  Your landlord is probably going to have some questions there, as should you since its your ass on the line in all of this.\n\nMaybe thats true, maybe not, but you gotta gamble on it.  There is nothing stopping you.\n\nKeep in mind most property owners just want to know whats going on with their property and have it be a reasonable and clear answer.  They also want to get paid, and be confident in that.\n\nSo if I were you, I'd maybe phrase this differently if you tried to do it.", "replies": [{"id": "ezacdf4", "text": "Thanks, that's very helpful.  \n\nTo answer your question (not sure if it was rhetorical) I do hold inventory but I said my business was ecommerce because I only sell online to keep overhead rock bottom (while starting out).  I keep a very limited amount of inventory in my home, but that is a definite constraint and as my business grows I'll have to move it out.  So this thread is me pondering future possibilities.", "replies": [], "depth": 2}], "depth": 1}, {"id": "eza07jm", "text": "I do commercial real estate in Arizona.  (different example) if you had a nail salon, and you rented out one of those chairs to a eyebrow lady, you would not need to let the landlord know.  UNLESS you were leasing the WHOLE SPACE, or they were buying your business and you wanted to reassign the lease to them", "replies": [{"id": "ezblhka", "text": "Different scenario were the entire space is sub leased but no re assignment needed. We leased to a event planner, and they would technically sublease anywhere from a few hours to a week depending on the clients needs.", "replies": [], "depth": 2}], "depth": 1}, {"id": "eza6wit", "text": "There are several ways to go about doing this. The simplest is when you secure your space just make sure there isn't a tight sublease clause in the lease that prevents what you're trying to do. Since it wouldn't be a long term permanent lease I doubt it would be a sublease, but I'm not a real estate attorney. Best thing would be to let the landlord know ahead of time what your intentions are and write the lease to allow what you're doing. There could be issues with the use aside from a sublease issue. If you rent warehouse space then bring in dogs it may change the insurance needed by you or your landlord. Most leases have a clause that you can't do anything that changes their insurance cost or coverage.", "replies": [], "depth": 1}, {"id": "ezafebp", "text": "as most above have said this is very common. would add that if you're going to pursue this, speak with a tenant rep broker in your area--they will have a good idea of which owners are more amenable to this, walk you through basic risk assessments landlords will use when considering your proposal, and be able to present you appropriately", "replies": [], "depth": 1}, {"id": "ezguxmr", "text": "I have exeprience in subletting one hair salon chair and many medical offices in Mahattan. The hair salon decided to put the second person on his lease, the Landlord approved. For medical offices, subletting a room, the tenant is an independant agent, not a tenant. The second client became a subtenant leasing several rooms, he got a sublet lease. They all worked out nicely. You should consider either options, make sure your lawyer write a 1-2 page agreement if you sublet a room or half of the space. Verify with your Landlord that it is permitted. Wish you good luck.", "replies": [], "depth": 1}]