Businesses in Florida – particularly those just getting started – oftentimes rent the commercial real estate they need, such as retail locations, office space and warehouses. Renting instead of owning can be a sound business decision. But, what are some key terms in a lease for commercial real estate?
One term may seem quite obvious: the amount of rent. No two commercial real estate leases are the same, in general, so the amount and frequency of rent paid can vary quite a bit. In many cases, rent is paid monthly, but other arrangements can be made in some situations. Also, depending on the length of time the lease will apply – another important term – the amount of rent may increase over time.
If a tenant is renting existing space, there may be a need to alter the space to accommodate the tenant’s business needs. Any improvements that are made to the commercial real estate will need to be addressed in the terms of the lease, as will the appropriate uses for the real estate. Lastly, whether or not subleasing will be permitted should also be a term included in most commercial real estate leases.
Although negotiating the terms of a commercial real estate lease is a common enough occurrence in Florida, many businesses, especially start-ups, want to make sure that they are agreeing to terms that are not too one-sided in favor of the landlord. Understanding the legally binding nature of leases, the terms contained within such documents and the legal remedies if disputes occur is crucial.