Commercial Lease Red Flags for Florida Tenants

A commercial lease is one of the biggest financial commitments a business makes — often five or ten years of rent, plus obligations most tenants don’t notice until it’s too late. Unlike residential leases, commercial leases in Florida are heavily negotiable and offer few automatic tenant protections. Before you sign, watch for these red flags.

1. “Triple net” costs you didn’t budget for

Many Florida commercial leases are triple net (NNN), meaning you pay base rent plus your share of property taxes, insurance, and common-area maintenance (CAM). Vague or uncapped CAM charges can balloon your real occupancy cost. Ask for a cap on annual CAM increases and the right to audit the landlord’s charges.

2. Automatic renewals and escalations

Look for rent-escalation clauses (fixed percentages or tied to CPI) and automatic renewal terms that lock you in if you miss a notice deadline. Know exactly when and how you must give notice.

3. Personal guarantees

If the lease requires a personal guarantee, your personal assets — not just the business — are on the line. Negotiate to limit it (for example, a “good-guy guarantee” that ends if you vacate properly, or a guarantee that burns off after a few years of on-time payments).

4. Repair, maintenance, and “as-is” clauses

Who fixes the roof, HVAC, or plumbing? Leases often push expensive structural and system repairs onto the tenant. Clarify these obligations and get the premises’ condition documented before move-in.

5. Assignment, subletting, and exclusivity

If you may sell your business or relocate, make sure you can assign or sublet the space. And if location traffic matters, negotiate an exclusivity clause so the landlord can’t lease to a direct competitor next door.

Read it before you sign

Commercial landlords draft leases to protect themselves. Nearly every term is negotiable — but only before you sign. Having the lease reviewed can prevent years of avoidable cost and risk.

This article is general information about Florida law, not legal advice. Every situation is different — contact Kerr Law Group to discuss yours.