There are several types of commercial lease agreements you may enter into as a tenant in Florida. Included among them are fixed lease, gross or modified gross or lease triple net lease. Regardless of the type of lease agreement you enter into, be sure to thoroughly review its provisions and work closely with a real estate attorney to negotiate favorable terms on your behalf.
Commercial Net Lease Agreements Defined
One of the most common lease agreements tenants encounter is a net lease. In net lease agreements, some or all of the landlord’s expenses are transferred to the tenant. Net leases are further broken down into three general categories:
- Single net lease – in this agreement the tenant pays the rent plus their portion of the taxes
- Double net lease – here, the tenant pays rent, taxes, plus a portion of the property’s insurance premiums
- Triple net (NNN) lease – with a NNN lease, the tenant pay rent, taxes, insurance, plus common area maintenance (CAM) expenses
NNN lease agreements are often favored by large businesses, but despite the majority of expenses being covered by the tenant, the landlord is still responsible for maintaining the structural integrity of the building. To account for that, there is yet another category of net lease agreements called an “absolute NNN lease.” In this agreement, the tenant would be fully responsible for the structural components of the property as well.
Negotiating NNN Lease Renewals in Miami
Whether you’re a landlord or a tenant, you want to protect your interests when it comes time to negotiate a lease renewal. A tenant may be looking for a rent reduction or abatement, or perhaps a tenant improvement allowance. A landlord must weigh the terms of the existing NNN lease with future opportunities. Turn to a commercial real estate attorney as you evaluate your options and consider the areas to further negotiate.
Our team at the Law Offices of Alex D. Sirulnik, P.A. has significant experience negotiating strong and favorable NNN lease renewals for SoFla businesses, and we’re ready to help you. Contact us today to schedule a consultation.