Florida Percentage Shopping Center Lease Agreement

• Category: Landlord Tenant - Commercial Leases - Shopping Centers
• State: Multi-State
• Control #: US-01626
• Format: Word; Rich Text

Description

This form is for the lease of property to be used as a shopping center. The landlord warrants that the demised premises may be used, but not limited to such use, by tenant, among others, for the conduct of a mercantile business of the type and kind known as a variety store, discount store, dollar store or variety discount store. A Florida Percentage Shopping Center Lease Agreement is a legal contract between a commercial property owner and a tenant, defining the terms and conditions for leasing space within a shopping center located in Florida. This type of lease agreement is typically used for retail businesses that operate within a shared shopping complex. The primary characteristic of a Florida Percentage Shopping Center Lease Agreement is the inclusion of a percentage rent clause, which requires the tenant to pay the landlord a portion of their monthly gross sales in addition to the base rent. This percentage rent is calculated based on a pre-determined percentage, commonly referred to as the "overage rate," and applies when the tenant's sales exceed a specified sales threshold. Including a percentage rent provision in the lease agreement allows the landlord to benefit from the tenant's success by sharing in the profits. This lease agreement also covers other critical aspects of the tenancy, including the lease duration, rent escalations, permitted use of the space, maintenance responsibilities, alterations, rent abatement, insurance requirements, and dispute resolution procedures. It is crucial for both parties to carefully review and negotiate these terms to ensure mutual understanding and compliance. There are several variations or types of Florida Percentage Shopping Center Lease Agreements that may be used depending on the specific circumstances or preferences of the parties involved. Some common types include: 1. Gross Sales Percentage Lease: This agreement stipulates that the tenant pays a percentage of their gross sales as rent to the landlord. The overage rate and sales threshold are negotiated between the parties. 2. Percentage Rent Only Lease: In this type of lease, the tenant pays only a percentage rent without any base or fixed rent, which allows them to operate with lower upfront costs. The percentage rent is calculated from the first dollar of sales. 3. Base Rent Percentage Lease: This lease structure combines a fixed base rent amount and a percentage rent provision. The tenant pays both the base rent and a percentage of their sales exceeding the agreed-upon threshold. 4. Graduated Percentage Lease: This lease agreement features step-up percentage rent levels based on increasing sales thresholds. It means that as the tenant's sales rise, the overage rate may change, resulting in a higher percentage of rent due to the landlord. Other vital elements included in a Florida Percentage Shopping Center Lease Agreement are maintenance provisions, which define the responsibilities of the landlord and tenant regarding repair and upkeep of the leased space and common areas. Additionally, it may include exclusive-use clauses preventing the landlord from leasing space to direct competitors of the tenant within the shopping center. By having a clearly defined Florida Percentage Shopping Center Lease Agreement, both the landlord and tenant can engage in a mutually beneficial relationship, ensuring transparency and accountability throughout the tenancy.

A Florida Percentage Shopping Center Lease Agreement is a legal contract between a commercial property owner and a tenant, defining the terms and conditions for leasing space within a shopping center located in Florida. This type of lease agreement is typically used for retail businesses that operate within a shared shopping complex. The primary characteristic of a Florida Percentage Shopping Center Lease Agreement is the inclusion of a percentage rent clause, which requires the tenant to pay the landlord a portion of their monthly gross sales in addition to the base rent. This percentage rent is calculated based on a pre-determined percentage, commonly referred to as the "overage rate," and applies when the tenant's sales exceed a specified sales threshold. Including a percentage rent provision in the lease agreement allows the landlord to benefit from the tenant's success by sharing in the profits. This lease agreement also covers other critical aspects of the tenancy, including the lease duration, rent escalations, permitted use of the space, maintenance responsibilities, alterations, rent abatement, insurance requirements, and dispute resolution procedures. It is crucial for both parties to carefully review and negotiate these terms to ensure mutual understanding and compliance. There are several variations or types of Florida Percentage Shopping Center Lease Agreements that may be used depending on the specific circumstances or preferences of the parties involved. Some common types include: 1. Gross Sales Percentage Lease: This agreement stipulates that the tenant pays a percentage of their gross sales as rent to the landlord. The overage rate and sales threshold are negotiated between the parties. 2. Percentage Rent Only Lease: In this type of lease, the tenant pays only a percentage rent without any base or fixed rent, which allows them to operate with lower upfront costs. The percentage rent is calculated from the first dollar of sales. 3. Base Rent Percentage Lease: This lease structure combines a fixed base rent amount and a percentage rent provision. The tenant pays both the base rent and a percentage of their sales exceeding the agreed-upon threshold. 4. Graduated Percentage Lease: This lease agreement features step-up percentage rent levels based on increasing sales thresholds. It means that as the tenant's sales rise, the overage rate may change, resulting in a higher percentage of rent due to the landlord. Other vital elements included in a Florida Percentage Shopping Center Lease Agreement are maintenance provisions, which define the responsibilities of the landlord and tenant regarding repair and upkeep of the leased space and common areas. Additionally, it may include exclusive-use clauses preventing the landlord from leasing space to direct competitors of the tenant within the shopping center. By having a clearly defined Florida Percentage Shopping Center Lease Agreement, both the landlord and tenant can engage in a mutually beneficial relationship, ensuring transparency and accountability throughout the tenancy.