Negotiating Your Palm Beach Area Commercial Lease

Negotiating Your Palm Beach Area Commercial Lease

In South Florida, business owners commonly sign commercial leases in order to facilitate their operations.  Ordinarily, the arrangement involves a landlord renting space out to the business owner for an agreed-upon amount of time. These agreements typically involve a substantial amount of money for the owner and some risk for the landlord, and it’s vital that both sides understand their commitments before signing any documents.  Here are some issues to consider when negotiating your Palm Beach area commercial lease.


One of the most crucial factors to negotiate is how much you will be expected to pay each month. Some parties may have an agreement where the rent goes up each year, while others may negotiate a limit on how much the rent can be raised.  You will need to work out how much you will owe.  Additionally, there needs to be an understanding as to any expenses you will be responsible for paying.  For instance, who will pay for insurance, taxes, utilities, and repairs? Will this be a triple net lease wherein you will pay lower rent but bear these expenses?  Does the proposed type of lease work with your fiscal plan and business model?  Whatever you decide, you and your landlord will need to negotiate this matter up front.

How Long You Want to Remain at the Location

One essential part of your commercial lease will be the term, or length you intend to use the space.  If you expect to supply significant capital and need time to realize a return on your investment, a longer lease may be required. If your venture is higher-risk, you may require the flexibility of a shorter lease commitment.  You may also want to consider whether your landlord is willing to offer you any incentives to sign a longer lease.

Changes and Improvements to the Existing Space and Use

Often, business owners need to make changes or additions to a rented space for business operation purposes.  You and your potential landlord will need to discuss who will pay for these alterations and what, if any, improvements must remain with the property at the end of the lease. You may also need to determine how close the space needs to be to its original condition at the end of the term. Additionally, having a definitive idea of the permitted uses for the area before entering into your commercial lease can help you avoid disputes down the road. Further, finding out whether or not you can sublease may also be critical to your endeavor.

At Rabideau Klein, Guy Rabideau, Esq. and David E. Klein, Esq. are Florida Board-Certified Real Estate Attorneys with extensive experience with commercial real estate leasing in the Palm Beach area.  We have the expertise and local knowledge you need to ensure that your lease is negotiated according to your best interests.  Contact Rabideau Klein today to discuss your real estate legal needs.

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