The South Florida Business Journal reported that over 3.6 million square feet of leases in South Florida commercial properties are set to expire over the next 12 months. Included in the 3.6 million square feet is 1.91 million for retail, 1.15 million for office, and 484,225 for industrial. South Florida is home to approximately 40% of Florida’s expiring leases. The lease expirations could cause trouble for properties that are unable to obtain new leases on terms that are as favorable as deals in place now.
As discussed in a previous article, Essential Provisions in a Commercial Lease, both a landlord and potential tenant may benefit from a commercial real estate attorney reviewing and drafting lease provisions. Important provisions such as term, rent, quiet enjoyment, repair and maintenance, and condition of premises should be addressed. An experienced commercial real estate attorney may be able to prevent disputes before they materialize.
The language used in a contract is what governs the relationship between the contracting parties. In a lawsuit, the court looks within the four corners of the contract to determine the rights and obligations of each party. Outside evidence can be used in limited circumstances, such as to explain particular terms of the contract. A real estate attorney should be able to ensure there are no ambiguities in the lease terms.
While commercial properties may become victims to foreclosure from losing tenants, working with a commercial real estate law firm may make obtaining new leases easier. Negotiations with both existing and potential tenants may run more smoothly.