Florida Commercial Real Estate Lease Renegotiation
If there was ever time for a blog about commercial real estate I think now would be a pretty good time don’t you? There is lots of confusion, panic and desperation out there. So what do you do about that commercial lease or property of yours? As my attorney friends enjoy saying, it depends. Depends on what you want to do, who your landlord or lender is, the future of your business and that industry, and where you are in life. Here are the basics. Right now landlords are scrambling because they are not getting the amount of rent they were pre-virus. So for some tenants they are willing to tear up their old lease and renegotiate a new one at a much lower price for a longer period of time.
This is something I help tenants do and then ironically I get paid by the landlord to do so. We call it a lease recast. Why don’t all tenants have this option? Some have businesses that were failing before the virus, so why would a landlord throw good money after bad for someone who won’t be able to make it? Same goes for those that were not current on their rent or had payment issues. But tenants who have good credit, are in an industry that is strong, etc. those are the ones that landlords are going to bend over backwards to retain. Because if they can’t make a deal tenants really have a way to get out of their lease, through force majeure or other similar clauses in almost every lease.
For those looking to downsize, I can help with that. I am seeing many businesses now that had 5 offices but only need 2 now. Or ones that have 10,000 square feet but only need 2,500 square feet now. What if you are the building owner?? Depends on your accounts receivable and who your lender is. Regardless of which side you are on, in all of these situations you need good advice and it all comes back to that one super important word, renegotiation. But time is really of the essence for both sides so don’t delay on this, whatever it is you plan to do. If I can help you in any way with finding a new location, your commercial lease or property please do reach out and let’s discuss the options that are available. As always thanks for reading, stay safe and have a great day.
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