Commercial

... Hey, don't say I never helped you!

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Industrial & Warehouse Leasing
- Landlords almost always have room to offer free rent (abatement) in the first few months on longer leases, but they rarely bring it up unless the tenant asks.
- Clear height isn't just a number on a spec sheet. Two buildings with identical square footage can have very different usable storage capacity depending on ceiling height and column spacing.
- Personal guaranties on industrial leases are often negotiable to a capped dollar amount or a limited time period (like the first 12 to 24 months). Most tenants sign the full guaranty without ever asking if it's negotiable.
- CAM charges can include costs that shouldn't be passed to a single tenant, like capital improvements or excess management fees. A landlord's CAM statement is always worth auditing before you sign.
- Zoning matters as much as the space itself. A use that looks fine on paper can be technically illegal for that parcel, and that can kill a deal after the lease is already signed.

 

Flex Space
- Many flex and business parks have unwritten rules about outside storage, signage, and operating hours that only surface after move-in. Get park rules and association bylaws in writing before you sign anything.
- Some flex space is zoned strictly for light industrial use, meaning retail-facing or food service businesses may need a variance, or may not be allowed at all. Always confirm before a deposit changes hands.
- Parking ratio requirements vary by municipality and can quietly limit what kind of business can occupy a space. Tenants shopping on price per square foot alone often miss this until it's too late.

 

Retail Leasing
- Co-tenancy clauses let a tenant reduce rent, or walk away entirely, if an anchor tenant leaves the shopping center. Most tenants don't know to ask for this protection.
- Exclusive-use clauses stop a landlord from leasing to a direct competitor in the same center. It's one of the most valuable and most overlooked terms in a retail lease.
- Percentage rent kicks in once sales cross a negotiated threshold, and that threshold is a real negotiation point, not a fixed number, even though landlords rarely volunteer that.
- CAM charges for shared areas should reconcile against actual expenses every year. Almost no tenants ever audit them.

 

Office Leasing
- Full-service gross leases sound simple, but often bury annual operating expense escalations in the fine print. Always ask for a base year and a cap on annual increases.
- Class A, B, and C designations affect more than prestige. They influence financing terms, resale value, and how much tenant improvement allowance you can negotiate.
- TI (tenant improvement) allowances are almost always negotiable, especially on longer terms. Most first-time office tenants just accept the landlord's opening number.
- Parking ratio (spots per 1,000 square feet) can make or break a client-facing business, but it's rarely front and center in listings. Always confirm it directly.

 

Tenant Representation
- The landlord pays the broker's commission either way, meaning tenant representation costs the tenant nothing out of pocket. Most business owners don't realize this and negotiate alone thinking they're saving money.
- Running two or three competing letters of intent at the same time is one of the biggest levers for better lease terms. Most tenants only ever talk to one landlord at a time.
- Renewal options, assignment rights, and early termination clauses are almost always negotiable, even when the landlord's first draft presents them as fixed.

 

Buying or Selling a Business
- An asset sale lets a buyer avoid inheriting the seller's old liabilities and legal exposure, unlike buying the entity outright. That distinction alone can be worth structuring a deal around.
- A blind teaser paired with a signed NCND protects a seller's confidentiality before a buyer ever learns the business name or address. Skipping this step risks employees or competitors finding out before a deal closes.
- For E-2 visa buyers, not every business qualifies. The investment has to be real and active, and a straightforward, asset-heavy business is often a stronger E-2 vehicle than people expect.
- Seller financing is far more common in small business deals than most buyers assume, and it can make an otherwise unaffordable deal work for both sides.

 

Commercial Investment Sales
- Net operating income, not the asking price, is what actually drives a commercial property's value. Always request the trailing 12 months of real financials, not just a projected pro forma.
- A 1031 exchange lets an investor defer capital gains tax by rolling proceeds into a new like-kind property, but strict IRS timelines apply (45 days to identify a replacement, 180 to close). Missing that window forfeits the tax benefit entirely.
- A lower cap rate isn't automatically a worse deal. It often reflects stronger, more in-demand real estate that buyers are competing for.

 

Multifamily
- The rent roll matters as much as the NOI. A property with several leases about to expire has very different upside than one that's fully locked in at below-market rents.
- Deferred maintenance is one of the biggest hidden risks in multifamily deals. Always request a property condition report and reserve study, since sellers rarely volunteer this upfront.
- Florida's rules on security deposits, lease terms, and tenant notice periods directly affect how quickly a new owner can reposition a property, and that timeline should factor into what you're willing to pay.

 

Restaurant Space
- Restaurant leases almost always require a hood, grease trap, and dedicated exhaust system. Retrofitting a space that wasn't previously food service can cost far more than buyers expect, so always confirm the space is already permitted for it.
- Percentage rent and co-tenancy clauses matter even more here than typical retail, since neighboring foot traffic directly drives sales. An anchor tenant leaving can genuinely hurt a restaurant's business.
- Florida liquor licenses are tied to location, and some are transferable with a business sale while others aren't. This needs to be confirmed early since it can make or break the deal's value.
- Landlords are often more willing to offer free rent or a larger TI allowance for restaurant buildouts given the investment involved, but tenants rarely think to negotiate for it.