Has anyone subleased a part of their facility to help pay the bills?

My partner and I are looking for a good warehouse to start with. We found one today that looks amazing but is just a bit too big for what we need starting out. It wouldn’t be hard to partition the front offices off from the back and try subleasing it to another company until we need to expand into the space. But I also live in California where it can be lengthy nightmare to evict a bad tenant (in residential). I dont know if it is just as bad in commercial, but there are so many regulations in general that I wouldn’t be surprised if it was. That is obviously worst-case-scenario and hopefully we never have to deal with it, but I would like to know if this is more/less risky than it appears?



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  1. You might try looking into third party warehouse providers (I believe HotShots is one I’ve visited a location of for an inventory count once) and see how they go about it.

    Probably a little different since I believe they owned the warehouse and rented out space to various company’s but maybe a good place to start.

    Good luck!

  2. Yes.

    For my first startup I leased about 3000 square feet. When that went belly up I ended up with the lease personally. I sublet out all of it and kept a single office. Effectively I got that office free. I used that office to start my next startup – the one that worked.

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