Basics of a Commercial Lease
Renting commercial space is a big responsibility, and the process is very different from residential leases. It’s important to understand the basics of these types of leases when renting commercial property in Miami Beach.
Major Differences Between Commercial and Residential Leases
Commercial leases are not typically based on standard forms. When drafting a lease agreement, it’s customized to meet the specific needs of the landlord. For this reason, it’s critical as a commercial property management owner in Miami Beach to read over the agreement carefully. Each landlord is different, and you want to ensure you err on the side of caution and don’t assume you know everything.
Negotiating a commercial lease is very common. Because these leases aren’t subjected to as many consumer protection laws, there are no caps on items like security deposits. You can work out your own negotiations based on what your needs as a renter are. Your business may require special features that aren’t previously outlined in an initial agreement. You’ll want to negotiate for whatever you need so you can effectively run your business in your commercial space.
Tailor Your Lease Agreement To Fit Your Needs
When negotiating your lease agreement, you want to ensure your business plans can be met in this space. For example, if you want to advertise with signage, will this be allowed? Consider what the rent cost covers. Will it be a gross lease, which includes insurance, property taxes, and maintenance costs, or will it be a net lease, where you are charged separately for these costs? Another option in this case could be what’s called an adjusted gross lease, which is a combination of a gross and net lease.
An important factor to consider is the longevity of your business. Commercial leases are binding and often last longer than one year. You need to be confident that you’ll be requiring this space for the term of the lease. Similarly, if you plan to rent this commercial Miami Beach property for an extended period of time, like ten years, you must understand your future renewal options. Planning for the future is critical when investing in commercial property.
Improvements To Your Miami Beach Commercial Property
You and your landlord need to agree on the rules regarding any improvements to the rented space. Most commercial properties are bare bones, and you’ll need to make modifications to design the space for your use and branding. You must define which party will pay for which improvements.
Similarly, in regards to the Americans with Disabilities Act, there may be some renovations required to meet these standards. Ensure that you and the landlord agree on who will cover these costs.
The Miami Beach Commercial Property Team That Works With You
If you’re looking for a commercial property management company in Miami Beach to help you find the space for your business, JMK Property Investments is the team you need. We’re here to provide exceptional professional service with a personal touch to maximize your potential.