There are many large office parks and buildings throughout Florida. These buildings are generally owned by one owner and then the individual spaces are leased to various businesses who pay rent each month. The landlords/owners of these properties can earn a significant amount of money from these leases, but it is important that they keep the spaces filled with current tenants to ensure they are receiving rent for every space.
When a new business moves into a space, generally a commercial lease agreement is signed that states all the terms of the rental agreement. This includes how much rent will be as well as many other covenants dictating what the landlord is responsible for and what the tenant is responsible for throughout the lease. However, circumstances change throughout the term of a lease, which can last for many years at a time. So, from time to time either the landlord or the tenant may want to renegotiate the lease.
During the renegotiations there are a number of factors the landlord will want to consider to ensure that the lease remains profitable for them. One is knowing the profitability of the tenant’s business. They also need to know current market rates for that type of rental space in the area. The renegotiation could also involve a tenant downsizing space so the landlord can rent to a new tenant to make up the potential loss in rent. The landlord may also be able to have a guarantor sign in exchange for less rent to protect themselves.
The factors listed above are just some of the factors that landlords in Florida should consider during renegotiations of leases. There are many other factors as well. It is important that the renegotiated lease is drafted properly and clearly indicates the responsibilities of both the landlord and tenant. Experienced attorneys understand these lease negotiations and may be a useful resource.