Commercial Real Estate 101 offers answers to frequently asked questions regarding commercial real estate.

Michael Monteclaro can help you determine the right commercial strategy for business. Is it better to lease than own? What is a Triple Net Lease?

What is a Triple-Net Lease?

A triple-net lease, commonly known as NNN lease, is a type of commercial real estate lease agreement where the tenant agrees to pay for all expenses associated with the property in addition to the base rent. These expenses typically include property taxes, insurance, and maintenance costs, hence the term “triple-net.”

Under Florida commercial real estate law, a triple-net lease is governed by the terms outlined in the lease agreement, which typically detail the responsibilities of both the landlord and the tenant regarding property expenses. Florida law generally allows landlords and tenants to negotiate the terms of the lease, including the allocation of responsibilities for property expenses, as long as they comply with applicable state and local laws.

It’s essential for both parties involved in a triple-net lease to thoroughly review and understand the lease agreement, as it dictates each party’s obligations and rights regarding property expenses. Additionally, it’s advisable for parties to seek legal advice to ensure that the terms of the lease comply with Florida commercial real estate laws and adequately protect their interests.

Owning Commercial Real Estate vs. Leasing in Florida

Owning commercial real estate in Florida offers long-term investment benefits, including property appreciation and potential tax advantages. Owners have control over property modifications and maintenance, providing stability and the ability to build equity. However, it requires significant upfront capital and ongoing responsibilities.

Leasing Commercial Real Estate in Florida

Leasing provides flexibility, allowing businesses to adapt to changing market conditions and scale operations without the burden of property maintenance. It requires less initial investment, freeing up capital for other business needs. However, leasing can result in higher long-term costs and less control over the property. Both options have unique advantages, depending on business goals and financial situations.

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