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5 Legal Red Flags to Watch for in Commercial Lease Agreements in South Florida

Signing a commercial lease is one of the most important—and expensive—decisions a business owner can make. Whether you’re opening a new office in downtown Fort Lauderdale, launching a retail location near Las Olas Boulevard, or expanding into warehouse space in Broward County, your lease will shape your long-term costs, risks, and business flexibility.

At Conrad & Scherer, we regularly advise clients in South Florida on how to navigate commercial leasing risks and disputes. Based on decades of litigation experience, here are five legal red flags that should prompt further scrutiny—or even renegotiation—before signing a lease.

1. Ambiguous Maintenance and Repair Responsibilities

One of the most common—and costly—mistakes tenants make is assuming the landlord will handle all property upkeep. Commercial leases often shift the burden of maintenance, repairs, and even capital improvements to the tenant, especially in triple-net (NNN) arrangements.

Red flags include:

• Vague language like “tenant shall maintain premises in good condition”

• Lack of clarity around who pays for HVAC, plumbing, roofing, or structural repairs

• No limit on the tenant’s financial responsibility for major replacements

Always request a clear breakdown of responsibilities and consider negotiating caps on maintenance costs or exclusions for structural repairs.

2. Unilateral Termination or Relocation Clauses

Some leases give the landlord sweeping rights to terminate your lease early or relocate your business to another part of the property. These clauses may seem minor at first, but they can be devastating to your operations.

Examples include:

• Landlord can terminate “at its sole discretion” with 30 or 60 days’ notice

• Relocation clauses without compensation or moving assistance

• Vague language about “renovation,” “redevelopment,” or “repurposing” of the property

Always read termination and relocation clauses carefully—and if they’re included, negotiate fair notice periods, relocation cost coverage, or buyout provisions.

3. Personal Guarantee Requirements

Many South Florida landlords require small business tenants to personally guarantee the lease. This means that if your business defaults, you (and potentially your spouse or partner) could be held personally liable for the full remaining rent and related costs.

Legal risks include:

• Unlimited duration or liability on the guarantee

• No limitation even if you sell or assign the business

• Cross-default clauses tying personal assets to other obligations

A legal review can help negotiate the scope of a personal guarantee or explore alternatives such as a limited guarantee or larger security deposit.

4. Restrictions on Assignment or Subleasing

Your lease should allow for flexibility in case your business needs to grow, shrink, or change hands. However, many leases in South Florida restrict your ability to assign the lease or sublet the space—even in a merger, sale, or corporate reorganization.

Warning signs:

• “Landlord’s sole discretion” required for any transfer

• No carve-outs for corporate affiliates or successors

• Automatic acceleration of rent or forfeiture penalties upon assignment

Don’t assume you can simply exit the lease or sublet without issue. Be sure the lease reflects the realities of your long-term business goals.

5. Overbroad Use or Compliance Clauses

Landlords often insert language requiring the tenant to comply with “all laws, regulations, and ordinances”—but without specifying which party is responsible for upgrades required by code changes or compliance updates.

This becomes especially risky when:

• You occupy an older building with ADA, fire code, or zoning risks

• The lease doesn’t clarify if the landlord or tenant must bear the cost of upgrades

• You intend to use the space for specialized operations (e.g., food service, cannabis, medical, tech labs)

Make sure the permitted use is clearly defined and all compliance obligations are fairly assigned.

Why It Matters in Fort Lauderdale

The Fort Lauderdale commercial real estate market is competitive, fast-changing, and increasingly complex. From downtown high-rises to industrial flex space in Sunrise or Plantation, tenants need more than just a broker—they need legal counsel that understands lease enforcement, landlord-tenant litigation, and how these agreements hold up in court.

Conrad & Scherer routinely represents businesses in South Florida involved in commercial lease disputes, enforcement actions, and negotiations. Whether you’re reviewing a lease before signing or facing a landlord who isn’t honoring your agreement, we’re here to help protect your business.

Talk to Our Litigation Team Before You Sign

Lease issues are one of the top drivers of commercial litigation in Florida. Before you commit to a space, let us help review the agreement, spot potential liabilities, and negotiate better terms. If a dispute does arise, you’ll have a legal partner ready to enforce your rights.

Contact our Fort Lauderdale office today to schedule a consultation.