Important terms for the preparation of a commercial lease
Securing the right space for one’s business can be a difficult process for a Florida resident. Not only must the space meet the zoning and operational requirements of the business, but it must also be affordable and must be capable of meeting the business’s changing needs. Because businesses’ successes can be variable, many entities choose to rent space rather than buy to avoid the costs associated with property ownership.
When preparing to sign a commercial lease for a business, a Florida resident should look for some important terms in their agreement. Like residential leases, commercial leases should cover important topics like the cost of rent, when it will be due, how it may be increased, and what security deposit requirements the property owner has for the leasing party. Commercial leases should cover some terms that are not always relevant to residential leases.
For example, commercial leases should address how improvements will be handled by the parties to the contract. If a leasing party adds a building to the property for the operation of its business, the lease should cover how the leasing party will be compensated for that improvement. Additionally, if the space to be leased is in a multi-unit building, the leasing party may seek to secure an exclusivity clause in their agreement to prevent the owner from letting a competing business open up in the same structure.
Commercial lease agreements should be tailored to meet the specific needs of the parties signing it. It is always a good idea to have an attorney review any documents that a business owner may sign on behalf of their business entity for the leasing of commercial space or if they have any other questions regarding commercial real estate.