Commercial real estate investors have found new ways to generate income from vacant units. By offering short-term leases and rentals on a daily or even an hourly basis, Florida property owners may take advantage of recent market trends.
Because of an increase in employees working remotely or from home, the demand for commercial space has changed. Startups and newer companies have turned to office subleasing, as reported by Forbes magazine. Renters may find it easier to take over an existing lease of a unit formerly occupied by a company that downsized into a “virtual” office.
Lease agreements with negotiable terms
Leases with flexible terms may appear more attractive to new tenants seeking office or production space. New business owners may not have contingency plans for an unpredictable marketplace and may require flexibility in their leasing arrangements. A business may, for example, find itself closing its doors or “going remote” sooner than expected.
Tenants may require a property owner willing to negotiate lease terms customized for short-term risks and goals. A provision allowing a tenant to terminate a lease without costly penalties may serve as an attractive alternative to a business operating with a greater degree of risk.
Shared commercial space units
Entrepreneurs and independent contract workers have begun to pool their resources together to rent affordable units they can share. Between the years 2016 and 2019, flexible commercial spaces have tripled. As reported by the South Florida Business Journal, the amount of shared spaces has grown to nine million square feet across the U.S.
Subdivisions that facilitate numerous smaller companies may stand a better chance of attracting tenants quickly. A lease agreement outlining the use of short-term or shared spaces — and each individual tenant’s liability — may require an owner drafting a particularly detailed document that caters to each renter’s specific needs.