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Florida Commercial Real Estate - Understanding The Frequently-used Terms

June 9, 2008 |

The State of Florida is currently thriving with a plethora of opportunities for both small companies and large enterprises. Consequently, the Florida commercial real estate market is also brimming with numerous properties and commercial spaces with the aim of providing accommodation for various types of businesses.

The Value Of Being Familiar With The Terms

Whether you own or lease a Florida commercial real estate property, the associated cost of keeping one is definitely one of the most substantial operating expenses you would ever make. For that reason, it is absolutely of the essence to have a handle on the various ramifications of acquiring a property title or going into a lease contract.

Prior to closing a deal on a purchase or lease of a Florida commercial real estate property, make sure that you seek advice from an attorney with a comprehensive knowledge of real estate law. In addition, you should also see to it that you only work with a competent real estate agent who has an impressive track record in the field of commercial realty. Familiarizing yourself with the commonly-used terms in commercial real estate is also important so as to avoid being in the dark when dealing with this crucial transaction.

Some Commonly-Used Terms

Here are some of the frequently-used real estate terms that you need to acquaint yourself with:

1. Broker

He or she is a real estate agent who takes charge of linking up a prospective buyer and a property seller, or a lessee and a landlord. All brokers have to be licensed in the state where they operate. As payment for their services, they usually receive a commission from either the seller or landlord of the Florida commercial real estate property.

2. Appraisal

This is a report that has been put in writing by a state-certified professional, which normally consists of an impartial assessment of the commercial property’s market value and the rationale that brought about the estimation. An appraisal is mandatory in every sale of a Florida commercial real estate property.

3. Concessions

These are the discounts or benefits handed over by the landlord or seller of a particular commercial real estate property that assists in closing a lease or sale contract. The most typical concessions include the assimilation of relocation expenditure, space renovation or upgrades, and trimmed down rental fee for the initial lease period.

4. Build-to-suit

This is a specific method of leasing a commercial real estate property — or any commercial property, for that matter — wherein the landlord makes certain enhancements to a commercial space based specifically on the tenant’s requirements. As a rule, the construction costs is factored into the lease provisions. The majority of built-to-suit stipulations for Florida commercial real estate are applicable to long-term leases (i.e. 10 years).

http://commercial-realestate-florida.xon.us — Florida Real Estate

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