Commercial Lease Guide: What South Florida Business Owners Need to Know

Types of Commercial Leases in South Florida

Before you sign anything, you need to understand what type of lease you're being offered. The lease structure determines how much you'll actually pay each month — and it's often much more than the advertised rate.

NNN (Triple Net) Lease

The most common lease type for commercial space in South Florida. With a NNN lease, you pay:

• Base rent (the advertised rate)
• Property taxes (your proportional share)
• Insurance (building insurance, prorated)
• CAM fees (Common Area Maintenance — see below)

Example: A space advertised at $25/SF/year NNN on a 1,500 SF space means your base rent is $3,125/month. But add NNN charges of $8-12/SF/year and your actual monthly cost is $4,125-$4,625. Always ask for the total occupancy cost, not just the base rent.

Gross Lease (Full Service)

With a gross lease, you pay one flat amount that includes everything — taxes, insurance, CAM, and sometimes utilities. This is more common for office space than retail. The advertised rate is higher, but there are no surprises.

Modified Gross Lease

A hybrid. You pay base rent plus some expenses (often just CAM and taxes) but not all of them. Common for medical offices and professional spaces.

Understanding CAM Fees

CAM (Common Area Maintenance) fees are one of the most misunderstood aspects of commercial leasing. They cover the landlord's cost to maintain shared areas:

• Parking lot maintenance and lighting
• Landscaping and irrigation
• Common area cleaning
• Security (if applicable)
• Property management fees
• Roof and structural repairs (sometimes)

In South Florida, CAM fees typically range from $4-$12 per square foot per year, depending on the property. Shopping centers and Class A office buildings tend to be on the higher end. Standalone buildings may have no CAM at all.

Watch out for: CAM caps (good for you — limits annual increases), administrative fees (usually 10-15% added on top of actual costs), and capital expenditure pass-throughs (some landlords pass major repair costs through CAM).

Typical Lease Terms in South Florida

• Lease length: 3-5 years is standard for small businesses. National chains typically sign 10-15 year leases.
• Rent escalation: Expect 2-3% annual increases or CPI-based adjustments.
• Security deposit: Usually 1-3 months' rent. Higher for new businesses without established credit.
• Tenant improvements (TI): Negotiate a TI allowance — the landlord contributes toward your build-out. Typical range: $10-$40/SF for shell space.
• Personal guarantee: Most landlords require the business owner to personally guarantee the lease, especially for new businesses.
• Assignment/sublease rights: Make sure your lease allows you to assign or sublease if your business circumstances change.

Negotiation Tips for South Florida Tenants

1. Never accept the first offer. Almost everything in a commercial lease is negotiable — rent, TI allowance, free rent periods, escalation rates, and lease length.
2. Ask for free rent. It's common to get 1-2 months of free rent during your build-out period. Some landlords will offer 3-6 months for longer lease commitments.
3. Get a TI allowance in writing. If the landlord promises to contribute to your build-out, get the exact dollar amount and payment terms in the lease.
4. Cap your CAM. Negotiate a CAM cap of 3-5% annual increase to protect yourself from surprise cost jumps.
5. Include an exit clause. A kick-out clause lets you terminate the lease if your business doesn't meet revenue targets after a specified period.
6. Hire a tenant rep broker. A tenant representative works for you (the tenant) and is typically paid by the landlord. They know market rates and can negotiate better terms than you can alone.
7. Check comparable rates. Before negotiating, research what similar spaces in the area are leasing for. This gives you leverage.

Average Lease Rates by Area (2026)

These are approximate ranges for commercial lease rates in key South Florida markets:

• Brickell/Downtown Miami: $45-$80/SF/year (office), $60-$120/SF/year (retail)
• Coral Gables: $35-$55/SF/year
• Doral: $22-$38/SF/year
• Hialeah: $18-$30/SF/year
• Fort Lauderdale: $28-$48/SF/year
• Boca Raton: $30-$50/SF/year
• West Palm Beach: $25-$45/SF/year
• Warehouse/Industrial: $10-$18/SF/year NNN across all three counties

Red Flags in a Commercial Lease

• No exclusivity clause: Without this, your landlord can lease the space next door to a direct competitor.
• Demolition clause: Allows the landlord to terminate your lease if they decide to redevelop the property. Negotiate this out or require substantial compensation.
• Uncontrolled CAM: If there's no cap on CAM increases, your costs can skyrocket year over year.
• Radius restriction: Prevents you from opening another location within a certain distance. Can limit your growth.
• No assignment rights: If you can't assign or sublease, you're trapped if your business needs change.

Frequently Asked Questions

What is a NNN (triple net) lease?

A triple net lease means you pay base rent plus your proportional share of property taxes, insurance, and common area maintenance (CAM). It is the most common lease type for retail and restaurant spaces in South Florida.

What are CAM fees in a commercial lease?

CAM (Common Area Maintenance) fees cover shared costs like parking lot maintenance, landscaping, exterior lighting, and property management. In South Florida, CAM fees typically range from $4-$12 per square foot per year.

How long is a typical commercial lease in South Florida?

3-5 years is standard for small businesses. Retail and restaurant leases tend toward 5-10 years due to buildout investment. National chains typically sign 10-15 year leases.

Can I negotiate a commercial lease?

Yes, almost everything is negotiable — rent, tenant improvement allowance, free rent periods, CAM caps, escalation rates, and lease length. Never accept the first offer.