If your business operates from a leased space, one of the most important business acts in which you’ll engage is the negotiation of your commercial lease. During this process, and before you sign on the line, it is important to sure that you understand all of the terms of your lease, including what each provision can do and what it can’t do (both for you and against you.) Once your experienced South Florida commercial real estate attorney has armed you with all of that knowledge, then you can make the best decision about whether or not to execute that document.
A North Miami Beach restaurant’s case is an example of this point. The restaurant signed a lease agreement in 2011 to rent a space in a shopping mall. The lease term was 10 years and stated an amount of “minimum rent,” which was $19,481 per month. The lease agreement also contained an “additional rent” provision that made the tenant responsible for paying, among other things, a certain amount of operating expenses.
The contract also stated that the tenant’s operating expenses portion of additional rent would increase by the fixed amount of 3% per year, “notwithstanding the actual amount of Operating Expenses otherwise allocable to the” space the tenant leased.