In this day and age, many companies are choosing to lease commercial property, rather than purchase it. If you are considering entering into a commercial lease there are a few basic facts you should know about the process before you commit to any terms or sign any agreements.
Because the commercial real estate market is oversaturated with vacant properties, and the demand for such properties isn’t as significant as previous years, you can find good bargains on real estate that will satisfy your company’s needs.
Finding the Right Commercial Property
Much like residential, the commercial leasing process begins with your search for property that meets your criteria. In Florida, there are several types of properties in a variety of prime locations to choose from.
Once you decide on the property, whether a standalone structure or office space in a multi-story building, you (the tenant) should enter into a written lease agreement with the owner of the property (the landlord) or the management company acting on its behalf.
What is a Lease Agreement?
A lease agreement is similar to any other written contract in that the parties (the tenant and landlord) specify the terms of the lease in a legally binding and enforceable written contract (the lease agreement).
The duration of a lease can range anywhere from month-to-month, to one year or multiple years. The landlord and tenant can be individuals and/or entities. Under some circumstances, the costs of the utilities are included in the monthly rent and the tenant is not responsible for making any payments other than the rent each month. In other instances, the utilities are not included and are the responsibility of the tenant, in addition to the monthly rent.
Terms of a Commercial Lease Agreement
Typically, a lease agreement will specify the following terms:
• The parties of the lease (the landlord and tenant);
• The duration of the lease term;
• The amount of rent; and
• Which party is responsible for paying the utility bills.
The terms of a lease agreement, although often similar, are not the same in every situation. Some lease agreements may include additional terms and conditions. It is imperative that you fully understand what is expected of you and the landlord, and make sure the terms are fully represented in the lease agreement prior to adding your signature.
Structures of Commercial Leases
A commercial lease can be structured in different ways. Generally, on the last day of occupancy specified in your lease, your tenancy terminates absent any other agreements between the landlord and tenant. If your lease term is from one year to another or is month-to-month, it’s considered a periodic tenancy. This means your lease won’t terminate and will continue without an exact termination date. According to Florida real estate law, a periodic tenancy renews automatically from one period to another.
Unlike simple lease transactions, commercial leases are more complex and typically require more revenue. Before you enter into a lease agreement for a commercial property, it is imperative that you consult an attorney that is knowledgeable about Florida’s commercial real estate laws, as well as the entire leasing process.
Tags: commercial property, lease, South Florida
Excellent blog this http://www.schecterlaw.com well done and I am really pleased to view : this it’s just what I needed to know.
It’s taken me literally 3 hours and 34 minutes of searching the web to find http://www.schecterlaw.com (joke)
But seriously I am really interested in Property Owners normally and so I shall be very pleased to become a regular visitor
Thanks and well done!
[...] business plan, organizing and setting up your company, preparing valid and enforceable contracts, negotiating commercial lease terms and agreements, as well as on-demand legal support and document review services to handle any issues that may [...]
[...] the doom and gloom, some experts think there is an upside in the commercial leasing industry. While credit lines remain tight and more companies shy away from making large purchases, [...]
[...] the real estate market attempts to recover, commercial leases are becoming more attractive. Property investors can purchase commercial properties in prime South [...]
[...] the real estate market attempts to recover, commercial leases are becoming more attractive. Property investors can purchase commercial properties in prime South [...]
[...] the real estate market attempts to recover, commercial leases are becoming more attractive. Property investors can purchase commercial properties in prime South [...]