It’s only natural to think of real estate when starting a business. Especially if you need a base of operations for your venture, learning everything you can about commercial real estate is imperative. Like other markets in the country, the Florida commercial real estate market is filled with plenty of options. Before you think about entering, however, you must first learn the basics. And two of the most crucial information you need are the lease and property types.
Lease is an important part of commercial real estate, as well as residential. In the state, a typical Florida commercial real estate property can be available in a variety of lease types. The choice of lease mainly depends on two things: the property type and the landlord. For now this would be irrelevant. What you only need to know are the most common types of lease.
The three common lease types, which are also available in the Florida commercial real estate market, are Triple Net, Gross, and Modified Net. In a triple net lease, you, as the tenant, pay a significant portion of the expenses required for the entire property to operate. The expenses will cover the maintenance, property taxes and insurance, in addition to your monthly lease.
The gross lease type, on the other hand, is most common in single to multi-tenant properties, like office and retail real estate. In this type of lease, the landlord typically pays for the maintenance, insurance and taxes. Also, the gross type lease will typically include an escalation clause, which will cause your monthly payments to increase overtime.
Lastly, the modified net lease is the combination of the first two. This is considered as a compromise to help both you and the landlord to land on a favorable lease structure.
Like the lease types, there are also three major types of commercial real estate properties. First, there is the multi-family property, which normally includes duplex homes and other habitation for multiple families. Apartments are the most common type of this property, but condos are sometimes considered as well.
Offices are also another type of commercial properties. They can be either standalone or single building. Different types of businesses typically rent a single building, and the payments equally divided to the tenants.
Lastly, another common type of Florida commercial real estate property is the retail space. This real estate is often used for consumer-based products, like clothing, electronics and others. Furthermore, you’ll likely find retail spaces in malls and strip centers.
Mark Michael Ferrer
Florida Commercial Real Estate
Source by Mark Ferrer