Posted on Friday, January 19th, 2024

paper with commercial lease on a table with chart,pen and magnifierCommercial leases in Florida often involve more complexity and less standardization than residential leases. They lack the same level of consumer protection laws common in residential agreements.

This highlights the importance of having an Orlando, FL, real estate lawyer to review and negotiate these leases. A commercial real estate attorney can ensure the lease is enforceable, addresses all material terms, and conforms to applicable laws while negotiating favorable terms for you.

Overview: Commercial Lease in Florida

A commercial lease in Florida is a contract between a landlord and tenant for commercial property use. It is more than just a document outlining rent payments; it includes the length of the lease, any additional rent obligations, and each party’s responsibilities. Commercial leases in Florida can also contain renewal or termination provisions. Given their potential long-term implications and higher stakes, they require careful review and negotiation.

Reviewing a Commercial Lease

When reviewing a commercial lease, it is important to look at:

  • Names of the Landlord, Tenant, and Personal Guarantors: This includes identifying the official parties involved in the lease. Personal guarantors are individuals who guarantee lease obligations, which can be crucial if the tenant is a small or new business.
  • Legal Description and Address of the Leased Property: This details the exact location and legal boundaries of the property being leased. It is essential for ensuring the accuracy of the lease document.
  • Lease Term, Commencement Date, and Renewal Terms: The lease term specifies the duration of the lease, while the commencement date is when the lease starts. Renewal terms detail conditions under which the lease can be extended.
  • Rent Amount, Structure, and Escalations: This section outlines how much rent is due, how it is structured (e.g., fixed, percentage-based), and any provisions for rent increases over time.
  • Security Deposit and Additional Rent Requirements: This covers the amount of the security deposit, conditions for its return, and any additional rent charges beyond the base rent (like maintenance fees).
  • Responsibilities for Repairs, Maintenance, and Insurance: This section delineates who is responsible for various types of property upkeep and insurance coverage, which can significantly affect costs and liabilities.
  • Restrictions on Property Use: These clauses limit the types of activities or businesses that can operate on the premises, which are vital for ensuring the tenant’s business is compliant.
  • Consequences of Lease Default: This outlines what happens if either party fails to meet their obligations under the lease, including eviction processes and financial penalties.

An Orlando, FL, real estate lawyer can be instrumental in examining these aspects, clarifying complex clauses, and addressing potential issues to protect your interests.

Negotiating in a Commercial Lease

In Florida, various terms in a commercial lease can be negotiated, such as:

  • Rent amount and payment structure, including potential rent increases.
  • Lease term length and renewal options.
  • Responsibilities for common area maintenance (CAM) charges.
  • Use of the premises and any exclusive use rights.
  • Early termination clauses, assignment, or sublet options.
  • Personal guarantees and their limitations.

Depending on the situation, you may be allowed to negotiate these terms to align with your business’s needs and plans. An experienced real estate attorney in Orlando can guide you through these negotiations, ensuring your interests are protected​.

Do You Need Legal Help?

Commercial lease agreements in Florida are intricate documents that require thorough understanding and careful negotiation. At Nishad Khan, P.L., we help our clients ensure that their commercial leases comply with Florida laws and are tailored to their specific needs and circumstances.

Remember, the right legal counsel can make a significant difference. Contact us today to talk with our real estate lawyers in Orlando.