What Is a Commercial Lease?
A commercial lease is a contract between a property owner and a business tenant that establishes the terms of occupancy for non-residential property. Commercial leases cover office buildings, retail spaces, warehouses, restaurants, medical offices, and industrial facilities. Unlike residential leases, commercial leases in Florida are not governed by the Residential Landlord and Tenant Act; instead, they are controlled almost entirely by the terms of the contract.
Florida Commercial Lease Law
Florida commercial leases are governed by Chapter 83, Part I, Florida Statutes (non-residential tenancies), which provides minimal protections compared to residential law. Key differences:
- No habitability requirement — The landlord is not automatically required to maintain the premises. Maintenance responsibilities must be negotiated in the lease.
- No security deposit protections — The residential security deposit rules (separate account, 30-day notice) do not apply to commercial leases.
- Freedom of contract — The parties can negotiate virtually any terms, including personal guarantees, radius restrictions, exclusivity clauses, and tenant improvement allowances.
- Eviction process — Commercial evictions require a 3-day notice for nonpayment. The landlord files in circuit court (not county court as with residential).
Types of Commercial Leases
- Gross lease (full-service) — Tenant pays a flat rent; landlord pays all operating expenses (taxes, insurance, maintenance). Common in office buildings.
- Net lease — Tenant pays base rent plus some or all operating expenses. Triple-net (NNN) leases require the tenant to pay property taxes, insurance, and maintenance.
- Percentage lease — Tenant pays base rent plus a percentage of gross sales. Common in retail (malls, shopping centers).
- Ground lease — Tenant leases the land only and builds their own improvements.
- Modified gross — A hybrid where some expenses are shared between landlord and tenant.
Related Terms
- Lease Agreement — The general concept of a lease contract
- Net Lease — Tenant pays operating expenses
- Ground Lease — Land-only lease
- Leasehold Estate — The tenant's interest during the lease term
Barnes Walker Commercial Lease Services
Barnes Walker's real estate attorneys negotiate, draft, and review commercial leases for landlords and tenants across Southwest Florida. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 83, Part II
The Florida Residential Landlord and Tenant Act governs lease agreements, security deposits, maintenance obligations, and the eviction process.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC