Quick Answer: Commercial lease disputes in Florida are governed primarily by the lease itself and Part I of Chapter 83 of the Florida Statutes. Landlords can pursue eviction, unpaid rent, and guaranty claims. Tenants can raise defenses such as landlord breach, failure to maintain, and violation of exclusive use or co-tenancy provisions. In a commercial eviction, the tenant generally must deposit disputed rent into the court registry to keep its defenses, so both sides should act quickly and follow statutory procedures.
South Florida’s commercial real estate market has changed dramatically in recent years. Office tenants have renegotiated space after the shift to hybrid work. Retail centers have re-tenanted with restaurants, fitness studios, and medical users. Industrial and logistics space has been in high demand. Rents in many submarkets of Miami-Dade, Broward, and Palm Beach counties have risen sharply. Through all of it, landlords and tenants have tested the limits of their leases.
Commercial leases are long, heavily negotiated contracts that allocate millions of dollars in obligations over many years. When disputes arise, the outcome often depends on a handful of provisions and on whether each side followed the correct procedures. McArdle Franco PLLC, a Coral Gables law firm founded in 2002, represents landlords, tenants, developers, and guarantors in commercial lease disputes. As a South Fl commercial lease litigation attorney team with deep real estate transaction experience, the firm reads leases the way they were drafted and litigates them accordingly. This article explains the most common disputes and how Florida law treats them.
The Most Common Commercial Lease Disputes
| Dispute | Typical Issue |
|---|---|
| Nonpayment of rent | Default, eviction, acceleration |
| CAM and operating expenses | Overcharges, reconciliation errors, audit rights |
| Maintenance and repairs | Roof, HVAC, structural, and code compliance |
| Use restrictions | Exclusive use, prohibited uses, radius clauses |
| Co-tenancy | Rent reductions when anchors leave |
| Assignment and subletting | Landlord consent and recapture rights |
| Holdover | Tenant remains after expiration |
| Guaranties | Enforcement against owners and parent companies |
| Construction and buildout | Tenant improvement allowances and delivery delays |
| Casualty and condemnation | Rent abatement and termination rights |
The Legal Framework
The Lease Controls
Florida courts generally enforce commercial leases as written. Commercial tenants are presumed to be sophisticated parties, and Florida’s residential tenant protections do not apply. That makes careful drafting and careful reading of the lease essential.
Chapter 83, Part I
Part I of Chapter 83 of the Florida Statutes governs nonresidential tenancies. It addresses issues such as termination of tenancies without a specified term, holdover tenants, the landlord’s lien for rent, distress for rent, and the procedures for removing a tenant.
Recent Change: Sales Tax on Commercial Rent
For decades, Florida was the only state to impose sales tax on commercial rent. The Legislature repealed that tax effective October 1, 2024. Leases that pass sales tax through to tenants and reconciliations covering periods around that date can produce disputes over amounts charged and refunded.
Commercial Evictions
Notice and Default
Most commercial leases specify notice and cure periods for monetary and non-monetary defaults. If the lease is silent, Florida law requires a three-day written demand for payment of rent or possession before a landlord may file for eviction for nonpayment. Landlords must follow the lease’s notice requirements precisely, because defective notice can derail an eviction.
The Court Registry Requirement
One of the most important rules in Florida commercial eviction cases is Section 83.232. When a landlord sues for possession, the tenant must pay into the court registry the rent alleged to be due, and continue paying rent as it accrues while the case is pending, unless the court determines a different amount. A tenant that fails to deposit rent waives its defenses other than payment, and the landlord is entitled to an immediate default judgment for possession without further notice or hearing.
This rule dramatically affects strategy. Tenants that intend to contest an eviction must be prepared to deposit rent promptly. Tenants may ask the court to determine the amount of rent to be paid if the amount claimed is disputed, but must act within the statutory deadline.
Self-Help
Commercial landlords must use lawful process to recover possession. Some commercial leases contain provisions permitting the landlord to change locks after a default, and Florida courts have considered such provisions with caution. Landlords considering any self-help remedy should obtain legal advice first, because wrongful lockouts can create liability for damages.
Distress for Rent
Florida provides a distress for rent procedure that allows a landlord to obtain a writ to secure a tenant’s property on the premises for unpaid rent, subject to statutory requirements and the posting of a bond. The landlord also has a statutory lien on certain property of the tenant located on the premises.
Rent and Damages Claims
Acceleration
Many leases allow the landlord to accelerate all future rent upon default. Florida law generally recognizes the landlord’s options when a tenant abandons or is evicted: terminate the lease and retake possession for its own account, retake possession for the tenant’s account and relet the premises while holding the tenant liable for the difference, or stand by and collect rent as it comes due. The lease and the landlord’s conduct determine which option applies, and courts examine whether accelerated damages must be discounted or mitigated.
Guaranty Enforcement
Personal and corporate guaranties are standard in commercial leases. Guaranty disputes often turn on whether the guaranty is absolute or limited, whether it survived lease amendments or renewals, whether the guarantor waived defenses, and whether “good-guy” provisions released the guarantor upon surrender of the premises.
Common Expense and CAM Disputes
Common area maintenance, operating expense, insurance, and tax pass-throughs are frequent sources of conflict. Typical issues include:
- Charges for capital improvements that should be amortized or excluded
- Management and administrative fees above the lease cap
- Insurance premium increases following hurricane seasons
- Improper gross-up of variable expenses
- Allocation errors among tenants
- Late or incomplete annual reconciliations
Many leases give tenants the right to audit landlord records within a limited period after receiving a reconciliation. Missing the audit deadline can waive the tenant’s right to challenge charges. A Florida contract dispute law firm reviewing a CAM dispute will start with the audit clause and its deadlines.
Retail Lease Issues
Exclusive Use Clauses
Retail tenants often negotiate exclusive use rights preventing the landlord from leasing to competitors. Disputes arise over how broadly the exclusive is defined, whether a new tenant’s incidental sales violate it, and what remedies apply, such as rent reduction or termination.
Co-Tenancy Provisions
Co-tenancy clauses allow rent reductions or termination if anchor tenants or a specified percentage of the center closes. Interpreting these provisions requires careful attention to definitions, measurement periods, and cure rights.
Radius Restrictions and Continuous Operation
Radius clauses restrict a tenant from opening competing locations nearby. Continuous operation covenants require a tenant to stay open. Enforcement of these provisions depends on precise language and Florida law on restrictive covenants and specific performance.
Office and Industrial Lease Issues
Office tenants frequently dispute operating expense escalations, building services, after-hours HVAC charges, parking, and restoration obligations at lease end. Industrial tenants may dispute roof and structural responsibilities, environmental obligations, and the condition of loading facilities. Restoration and surrender provisions can create significant liability when a tenant leaves.
Construction and Delivery Disputes
New developments and redevelopments create disputes over delivery dates, landlord work, tenant improvement allowances, and rent commencement. Tenants may claim delay damages or termination rights when space is not delivered on time. Landlords may claim the tenant failed to complete its work or open as required. These disputes overlap with construction law, and McArdle Franco’s experience in land development and construction litigation is particularly valuable here.
When the Landlord Breaches
Lease disputes are not only about tenant defaults. Landlords can breach too, and tenants have remedies.
Failure to Maintain or Repair
Many leases make the landlord responsible for roofs, structure, common areas, and building systems. When a landlord fails to make required repairs, tenants may suffer lost business, damaged inventory, and safety issues. Depending on the lease, remedies may include damages, self-help repairs with an offset against rent, rent abatement, or termination for constructive eviction. Commercial leases frequently limit these remedies, so the specific language controls.
Constructive Eviction
A tenant may claim constructive eviction when the landlord’s conduct makes the premises unusable for their intended purpose. Florida generally requires the tenant to vacate within a reasonable time to assert this claim. A tenant that stays in possession may be limited to damages.
Interference With the Tenant’s Business
Landlords who permit violations of exclusive use clauses, block access during renovations, or fail to enforce rules against other tenants may face claims for breach of the covenant of quiet enjoyment and damages.
Tenant Improvement Allowances
When a landlord fails to pay a promised tenant improvement allowance, tenants may have claims for breach and, depending on the lease, offset rights. Landlords often dispute whether the tenant satisfied conditions, such as lien waivers and final inspections, before payment was due.
Partition and Co-Owned Commercial Property
Disputes do not always arise between landlords and tenants. Commercial property is often owned by multiple investors or family members who disagree about whether to sell, refinance, or re-lease. When co-owners cannot agree, Chapter 64 of the Florida Statutes allows a co-owner to seek partition. Because commercial property usually cannot be physically divided, courts often order a sale and divide the proceeds. Partition claims frequently lead to negotiated buyouts. McArdle Franco handles partition matters as part of its real estate and business litigation practice.
Hurricanes, Casualty, and Condemnation
South Florida leases must address hurricanes. Casualty provisions determine whether rent abates, who rebuilds, and when either party may terminate after damage. Disputes arise over the extent of damage, insurance proceeds, and restoration timelines. Condemnation provisions allocate awards when government takes part of the property, such as for road widening.
Holdover Tenants
Under Section 83.06, a tenant who holds over without the landlord’s consent after demand for possession may be liable for double rent for the holdover period. Many leases also impose holdover rent of 150 to 200 percent of the final rent. Holdover disputes often arise when renewal negotiations fail.
Assignment, Subletting, and Business Sales
When a tenant sells its business, the lease often must be assigned. Leases typically require landlord consent, sometimes not to be unreasonably withheld. Disputes arise over whether a change in ownership of the tenant entity triggers an assignment, whether the landlord’s refusal was reasonable, and whether the landlord can recapture the space or share in profits. A Coral Gables business dispute lawyer can address these issues in the context of the overall business transaction.
Resolving Lease Disputes
| Option | When It Fits |
|---|---|
| Negotiated amendment | Temporary hardship, long-term relationship |
| Rent deferral or abatement agreement | Short-term cash flow issues |
| Lease buyout or surrender | Tenant wants out, landlord can re-lease |
| Mediation | Complex disputes with multiple issues |
| Arbitration | Required by lease or agreed by parties |
| Litigation | Eviction, guaranty enforcement, significant damages |
Negotiated solutions often preserve value for both sides. Re-leasing space takes time and money, and tenants face relocation costs. Even when litigation is filed, settlement frequently follows once each side understands its leverage.
Advice for Landlords
- Follow lease notice provisions exactly.
- Document defaults with dates, amounts, and correspondence.
- Avoid self-help without legal advice.
- Evaluate guarantors’ assets before choosing remedies.
- Consider mitigation and re-letting obligations.
- Use Section 83.232 effectively in eviction cases.
Advice for Tenants
- Read notice, cure, and audit provisions before a dispute starts.
- Raise issues in writing and keep copies.
- Deposit rent into the court registry promptly if sued for possession.
- Calendar CAM audit deadlines.
- Evaluate guaranty exposure for owners.
- Explore negotiated exits before default.
Related Commercial Disputes
Lease disputes frequently intersect with other business litigation. A tenant’s default may trigger disputes among co-owners or affect a pending sale of the business. A shareholder dispute attorney Miami may need to coordinate with lease counsel when owners disagree about how to handle a landlord’s demand. A Miami commercial litigation attorney can manage related claims together to avoid inconsistent outcomes. As a South Florida business litigation law firm, McArdle Franco handles lease disputes alongside the related contract, ownership, and construction issues they often raise.
Frequently Asked Questions
Does a commercial tenant have to pay rent into the court registry during an eviction?
Generally yes. Under Section 83.232, a tenant sued for possession must deposit the alleged rent into the court registry and continue paying as rent accrues, or it waives its defenses other than payment.
Can my landlord lock me out of my commercial space?
Landlords should use lawful court process to regain possession. Lockout provisions in commercial leases are treated cautiously, and wrongful lockouts can create liability.
Is my personal guaranty still valid after the lease was amended?
It depends on the guaranty’s language. Many guaranties include consent to future amendments, but some may be limited. A careful review of the guaranty and amendments is required.
Can I challenge CAM charges?
Usually, if you act within the audit and objection deadlines in your lease. Common challenges include improper capital expenses, excessive fees, and allocation errors.
What happens if I stay after my lease expires?
You may owe holdover rent under your lease, and under Florida law a tenant who holds over after demand without consent may owe double rent.
Is Florida still charging sales tax on commercial rent?
No. Florida repealed the state sales tax on commercial rent effective October 1, 2024.
Key Takeaways
- Florida enforces commercial leases largely as written.
- Tenants sued for possession must generally deposit rent into the court registry.
- Notice, cure, and audit deadlines often decide the outcome.
- Retail exclusive use and co-tenancy clauses require precise interpretation.
- Negotiated solutions frequently preserve more value than litigation.
About McArdle Franco PLLC
McArdle Franco PLLC is a Coral Gables law firm established in 2002 that counsels and represents businesses throughout Florida, across the nation, and internationally in business litigation, real estate, land development and construction, business structuring, and transaction structuring. The firm’s litigators practice in state and federal court and represent clients in arbitration, mediation, and administrative proceedings. The firm was named a Tier 2 firm in Miami for Litigation – Construction in the 2026 edition of Best Law Firms® and was ranked in Chambers USA 2025 for Litigation: General Commercial in Florida.
Contact McArdle Franco PLLC
Address: 255 Alhambra Circle, Suite 925, Coral Gables, FL 33134
Phone: (305) 442-2214
Email: info@mcper.com
Website: mcardlefranco.com
This article provides general information and is not legal advice. Consult a qualified attorney about your specific situation.
Sources and Further Reading
- Nonresidential Tenancies, Part I, Chapter 83, Florida Statutes – Florida Legislature
- Rent Paid Into Registry of Court, Section 83.232, Florida Statutes – Florida Legislature
- Holdover Tenants; Double Rent, Section 83.06, Florida Statutes – Florida Legislature
- Landlord’s Lien for Rent and Distress for Rent, Sections 83.08–83.19, Florida Statutes – Florida Legislature
- Repeal of Sales Tax on Commercial Rentals (Effective October 1, 2024) – Florida Department of Revenue
- Partition of Property, Chapter 64, Florida Statutes – Florida Legislature
- Florida Arbitration Code, Chapter 682, Florida Statutes – Florida Legislature
- Florida Rules of Civil Procedure – The Florida Bar
- Business Litigation Practice – McArdle Franco PLLC
- Best Law Firms 2026 and Chambers USA 2025 Rankings – McArdle Franco PLLC Press Release
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