subject: Three Important Questions When Negotiating Miami Commercial Real Estate Leases [print this page] Buying commercial properties is different from purchasing residential ones. While the basic considerations still exist, in commercial real estate, these considerations significantly increase. One of the things marketers must look out for is the lease term. Negotiating a better term is not as easy as other rental properties. So when you're reviewing the lease of your Miami commercial real estate property, perhaps, always ask these three questions.
1. What types of lease are available?
When leasing a Miami commercial real estate property, there are several types of lease you should know about: Triple Net (NNN), Double Net, Net, Fully Serviced, Gross, Percentage/Percentage Rent, Sublease, and Rentable Square Feet. It pays to research these lease terms to know which will be better for your business. Dont forget to keep in mind that you future plans for the business will play a major role in choosing the lease term.
In a Triple Net Lease, for instance, you are responsible for paying the three major fees of the Miami commercial real estate: property taxes, insurance and maintenance. These expenses are added to your monthly rental rates, which make this lease type somewhat disadvantageous for some marketers.
2. What part of the lease is negotiable? Is the lease negotiable?
Once you determine the type of lease associated with the commercial property, dont forget to negotiate. In some lease types, especially in Triple Net Leases, landlords are always favored. Your goal is to get the fairest term possible or even tip the lease more to you favor. The first question you must ask the landlord is, Is the lease negotiable? Its important to know if the landlord is willing to make certain concessions and on what part of the lease.
While of the topic of the part to negotiate, dont forget to try haggling crucial areas of the lease, including: life of the lease, renewal options, and, if possible, break-lease (early-release) term.
3. What insurance is required?
Landlord typically buys insurance coverage to protect the entire Miami commercial real estate property because it is still technically theirs; you're just renting. In some states, including Florida, renters are required to purchase homeowner or renter insurance coverage. This typically covers your belongings and personal items inside the property in case of emergencies. Residential renters insurance normally runs about $10 to $20 per month, but that is for homeowners. As a commercial property lessee, you can expect the monthly cost to be considerably larger.
