A Florida Commercial Lease Agreement is fundamentally a reciprocal accord between you and your property owner. This compact bestows you the privilege to occupy a property for your enterprise pursuits, for an agreed duration and cost. It's customized to the distinct tasks your venture aims to perform on site. Ensure you grasp each aspect of it prior to affixing your signature.
Florida Statutes, particularly, Chapter 83, Part 1, serves as a guide to lease matters. It includes sundry processes, interpretations, and provisions that regulate the formation, alteration, execution, and compromise of rental contracts.
Let's delve a bit into a few sections of this robust document:
Read on to learn more about Florida Commercial Lease Agreement, including:
Here are some key components that are typically included in a Florida Commercial Lease Agreement:
As an entrepreneur, you may find the intricate legal terminology intimidating. Still, with a lucid strategy and appropriate advice, you can assertively craft your lease contract. Let's delve into the fundamentals of a commercial lease agreement and learn how to adapt it to your necessities. Regard this as your cordial, direct manual to traverse the world of commercial lease pacts.
The "Authorized Activities" provision illuminates the designated utilization of the leased premises. It meticulously lists permissible operations. Elaboration includes industrial functions, administrative tasks, warehousing, logistics, and production and distribution of goods.
It's paramount to meticulously catalog all your anticipated enterprise operations here. This precision aids in circumventing prospective legal complexities and ensures productive allocation of resources. Incorporate every nuance to avert unforeseen developments. This comprehension steers your business in the correct direction.
Industrial and light manufacturing, warehousing, office, distribution, and assembly, including designing, manufacturing and distributing branded merchandise and promotional products, including all activities incident or ancillary thereto and all other lawful uses and purposes.
(a) This pertains to the lease period and prolongations. It commences on the Inception Date and terminates on the Expiry Date. You hold the possibility to protract it for two additional two-year spans under identical terms, although rent might climb. Alert the property owner in written format 30 days prior to the period conclusion to prolong.
(b) "Period" signifies both your initial lease duration and any subsequent extensions.
Unambiguous lease periods are vital for business strategizing and tasks, also for potential prolongations.
(a) The initial term of this Lease will commence on the Effective Date and expire on the Expiration Date. The Tenant may extend the Term of this Lease for [two] additional [two]-year extension term(s), on all the same terms and conditions (except for Rent, which will increase during extension Terms as provided below) contained in this Lease, by notifying the Landlord in writing of the Tenant’s election to do so not less than 30 days before the expiration date of the then-current Term, as the case may be.
(b) The initial term and any applicable extension term are referred to in this Lease as the “Term.”
The "Maintain and Repair" provision simplifies who takes charge of repairs. This spans both indoor and outdoor concerns, such as malfunctioning pipes or impaired masonry. The expense rests with the landlord, not you.
In the event a repair isn't tackled promptly, you have the capacity to arrange repair efforts and deduct it from your lease payment. Never forget to record these incidents as forethought for later. This provision is critical as it delineates repair duties and shelters you from unforeseen costs.
From and after the Effective Date, and for the remainder of the Term, the Landlord shall perform ordinary maintenance and repair of the interior of the improvements on the Premises. In addition, the Landlord shall, at its own cost and expense without reimbursement by the Tenant, keep and maintain in good condition and repair, and make all necessary repairs and replacements to, the exterior walls, building slabs, foundations, structural parts and components, parking lots, gutters, downspouts, roof, roof membrane and coverings and any other part, component or system on the exterior of the Premises. The Landlord shall, at its own cost and expense without reimbursement by the Tenant, keep and maintain in good condition and repair, and make all necessary repairs and replacements to the sprinkler system, mechanical, HVAC, electrical and plumbing systems of the Premises. If the Landlord fails to perform any repair or replacement required to be made by the Landlord in this Lease, and the Landlord fails to cure such failure within 15 days after receipt of a written demand from the Tenant (or immediately, in the case of emergency repairs, including loss of heating and air conditioning), then the Tenant may make such repair or replacement and the Landlord shall reimburse the Tenant for the cost thereof. If the Landlord fails to pay such amount, then the Tenant may offset against the Rent due hereunder the amount so expended.
"Modifications" stipulate your privileges to adapt the rented space. You can instigate alterations without requiring the landlord's permission, yet substantial modifications turn into the property of the landlord. You are at liberty to remove personal property such as shelving units or equipment as long as it doesn't inflict damage on the property. Comprehending this provision can avert conflicts and assist in streamlining your business configuration efficiently.
The Tenant may, at its own cost and expense and in a good workmanlike manner, make such alterations, additions, or improvements or erect, remove, or alter such partitions, or erect such racks, shelves, bins, machinery, furniture, fixtures, trade fixtures, equipment, and other personal property as it may deem advisable, without the consent of the Landlord. All fixtures and permanent alterations, additions, improvements, and partitions erected by the Tenant will be and remain the property of the Landlord during the Term, and will be abandoned by the Tenant at the expiration of this Lease. All racks, shelves, bins, machinery, furniture, equipment, and other personal property located in the Premises as of the Effective Date or otherwise installed by the Tenant may be removed by the Tenant at any time if the Tenant so elects. All such removals and restoration shall be accomplished so as not to damage the primary structure or structural qualities of the buildings and other improvements situated on the Premises.
The "Insurance" provision shields both lessee and property owner. As the tenant, you require property and liability coverage, designating the landlord as additional insured. The landlord is responsible for insuring against damage to the property.
'Subrogation waivers' hinder insurers from pursuing claims against the counterpart in case of a loss. Your insurance provider should inform the landlord within 30 days prior to policy termination. Grasping these conditions financially secures your venture and ensures peace of mind.
(a) At all times during the Term, the Tenant shall maintain, at its sole cost and expense, policies of insurance containing the following insurance coverages (which policies shall name the Landlord as an additional insured):
(1) Property insurance with premiums paid in advance insuring the Tenant’s property using the standard Special Causes of Loss Form or equivalent for the full replacement value. The foregoing is referred to in this Lease as “Property Insurance.”
(2) Commercial general liability insurance with respect to the Premises in amounts not less than $1,000,000 per occurrence, $2,000,000 aggregate limit using current ISO forms or equivalent.
(b) The Landlord shall obtain and keep in force during the Term of this Lease a policy or policies of insurance covering loss or damage to the Premises, in the amount of the full replacement value thereof, as the same may exist from time to time, but in no event less than the total amount required by lenders having liens on the Premises, against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, flood (in the event same is required by a lender having a lien on the Property), and special extended perils ("all risk" as such term is used in the insurance industry). Such insurance must provide for a payment of loss thereunder to the Landlord or to the holder of mortgages or deeds of trust on the Premises.
(c) The policies required by this section must provide for standard waivers of any right of subrogation that the insurer of such party may acquire against the other party to this Lease, for losses that are actually insured against, even if the loss results from a negligent act or omission. The Tenant’s insurance company must provide the Landlord with a certificate of insurance on form ACORD-27 (for Property Insurance required to be carried under this Lease), or its equivalent, and ACORD-25 (for liability insurance required to be carried under this Lease), or its equivalent, which provides that the insurance may not be cancelled without giving the named insured at least 30 days’ prior written notice (or at least ten days’ written notice of cancellation in the event of the non-payment of premium). The Tenant may carry any required insurance under a blanket policy if that policy complies with the requirements of this Lease.
The "Instances of Default" provision enumerates actions perceived as violations of your lease agreement. Usual instances encompass non-payment of rent, experiencing bankruptcy, or not adhering to lease stipulations.
Being mindful of this segment, and steering clear of these potential missteps, helps in cultivating a positive rapport with your landlord and in facilitating a seamless operation of your business.
The following events will be deemed to be Events of Default by the Tenant under this Lease:
(1) The Tenant fails to pay any installment of the Rent hereby reserved when due, or any other payment or reimbursement to the Landlord required under this Lease when due, and such failure continues for a period of 30 days after the Tenant’s receipt of written notice of such nonpayment;
(2) The Tenant becomes insolvent, or makes a transfer in fraud of creditors, or makes an assignment for the benefit of creditors;
(3) The Tenant files a bankruptcy petition or Tenant is adjudged bankrupt or insolvent in proceedings filed against the Tenant;
(4) A receiver or trustee is appointed for all or substantially all of the assets of the Tenant; and
(5) The Tenant fails to comply with any term, provision, or covenant of this Lease (other than the foregoing in this section 18), and does not cure such failure within 30 days after written notice thereof to the Tenant, or such longer period as may be necessary to cure such default provided the Tenant has promptly commenced curing such default and is diligently proceeding to obtain such cure.
The "Holdover" provision addresses scenarios when your tenancy remains past your lease's expiration. Failure to vacate by the lease's conclusion results in an increased rental fee of 125% for each lingering month. Ensure you comprehend the expenses of persisting beyond the lease term and devise a suitable departure plan.
If the Tenant holds over after the expiration of the Term and does not surrender the Premises prior to the expiration of the Term, then for each such month that the Tenant is holding over, the Tenant shall pay to Landlord 125% of the Rent due under this Lease for each month.
Upon the cessation of a commercial lease contract, a variety of situations could unfold. I've unearthed substantial resources that portray probable circumstances:
Indeed, repercussions for prematurely terminating a commercial lease contract can differ, yet there are several common penalties:
Given that the particulars of penalties may differ on the basis of the lease contract, it's vital to meticulously inspect the lease agreement to comprehend the precise terms and conditions implicated in premature cessation.
