Real Estate Deals & Transactions

Q&A – Commercial Real Estate Leasing – Assignment, Financing, and Transfers

Published on: April 12, 2020 | by ESQ.title

Q. DESCRIBE ANY LAWS ALLOWING THE TENANT TO ASSIGN ITS LEASE, OR SUBLEASE ITS PREMISES, WITHOUT THE LANDLORD’S CONSENT. IS A REASONABLENESS STANDARD IMPLIED WHEN THE LEASE IS SILENT ON WHETHER THE LANDLORD’S CONSENT TO AN ASSIGNMENT OR SUBLEASE MAY BE REASONABLY OR UNREASONABLY WITHHELD?

Under Florida law, the tenant may assign its lease or sublease its premises without the landlord’s consent if the lease is silent on assignments and subleases (Frissell v. Nichols, 114 So. 431, 434 (Fla. 1927)). If a lease requires the landlord’s consent to an assignment but is silent on the standard for the landlord’s consent, then an implied term is that landlord’s consent will not be unreasonably withheld and is subject to an implied covenant of good faith (Fernandez v. Vazquez, 397 So. 2d 1171, 1174 (Fla. 3d DCA 1981)). As a result, and because of concerns that criteria other than the ability to pay rent may not be considered in determining whether consent is reasonably required, it is expected commercial practice to include criteria for the granting or withholding of consent in a commercial lease. Continue Reading ›

Why are Mortgage Rates Up, While the Fed Rate was Reduced to ~0%?

Published on: March 28, 2020 | by ESQ.title

By: Alejandro E. Jordan, Esq.

The current COVID-19 Coronavirus crisis is having a critical impact on the Mortgage Industry, which could potentially make the 2008 financial crisis pale in comparison.

This short read will break down for you, in an easy to read format, exactly what the Mortgage Industry is up against and how servicers are being impacted by the current environment. It will also cover how the Fed, who is trying to help, is only making things worse due to unintended consequences.

Perhaps most importantly, we will cover steps that the Fed should take to help minimize the damage done by this crisis.

Coronavirus COVID-19 Real Estate Task Force | ESQ.title Provides Tactical Step by Step Guide

Published on: March 18, 2020 | by ESQ.title

By: Alejandro E. Jordan, Esq.

As mentioned in our previous post, the number of COVID-19 coronavirus (“Coronavirus”) cases continues to increase, and with the World Health Organization raising its threat assessment of Coronavirus to its highest level, businesses in Miami-Dade and Broward Counties are becoming increasingly aware of the many challenges that are ahead.

At ESQ.title, we have established a Legal/Real Estate Task Force focused on Coronavirus-related issues. Our aim is to provide guidance and plan for solutions to clients’ business and legal needs. Below, we address some of the important issues business owners and individuals should consider:

Real Estate Transactions

General:

Consider whether a transaction will be delayed or impacted due to the Coronavirus (for example, travel restriction-related delays, delays in conducting due diligence, a delay in signing a lease or guaranty because the parent company of a tenant is based in an impacted area, delayed inspection of construction progress, unscheduled holidays delaying deadlines, supply chain issues — see below — etc.).
Consider options to mitigate the impact on construction projects of the supply chain effects and consider rights and remedies under construction contracts.
In order to mitigate any slowdowns in transactions, property owners and brokers should consider new technologies allowing for virtual tours of assets to be used in place of physical asset tours and inspections.
Prepare for a spike in litigation due to construction delays, missed deadlines on purchase and sale agreements, leases and contracts generally.
Prepare for potential default claims.

Florida State Sales Tax on Commercial Leasing – Reduced to 6.5% for Miami-Dade, Broward and Palm Beach Counties as of January 1, 2020

Published on: December 30, 2019 | by ESQ.title

By: Alejandro E. Jordan, Esq.

Effective January 1, 2020, the Florida state tax imposed rate per Florida Statutes section 212.031 on the total rent charged for renting, leasing, letting, or granting a license to use real estate property in the State of Florida is decreased from 5.7% to 5.5%. This includes lease rent collected from retail spaces, offices, warehouses, and self-storage units or warehouse office combinations.

The reduction only applies to the state level tax – the local county option taxes are still in full effect.

ESQ-SUITES.COM – Shared Office Space is a solution for attorneys, solos, and law firms in Miami/Downtown Miami/Coral Gables, Florida

Published on: November 13, 2018 | by ESQ.title

By: Alejandro E. Jordan, Esq.

You aced torts and contracts, but no one in law school explained the business of running a law firm. So, here you are in a solo or small firm trying to manage important cases while hiring a receptionist or selecting office furniture. As the price per square foot of office space for Class A office space continues to skyrocket in areas like Coral Gables and Downtown Miami, Florida, overhead costs for fixed operating expenses such as office lease and rent expenses become extremely challenging to budget for many solo practitioners, small and mid-sized law firms and legal professionals.

Shared office space may be the solution to give you more free time and the opportunity to network with attorneys from a variety of fields.

Attorneys only

Going with a solo or small practice doesn’t mean you have to go it alone. Office sharing means attorneys like you will be just across the hall for consultation on a case or a discussion of the impact of a new law. These associations could lead to referrals from esq.suitemates that recognize your expertise in a particular field.

Shared Office Space Exclusive for Lawyers and Law Firms in Coral Gables/Downtown Miami, Florida

Published on: November 9, 2018 | by ESQ.title

By: Alejandro E. Jordan, Esq.

When you work as an attorney, client confidentiality and service is vital to your success. If you don’t have a professional office, or you need additional conference space than what you have, it’s time to consider creative ways to enhance your ability to serve your clients. With flexible law office space in Downtown Miami and Coral Gables, Florida, you have choices. Esq.suites offers a professional environment exclusive to legal professionals who need an efficient space in which to work.

For small to mid firm attorneys, solo practitioners or attorneys who are from out-of-town, esq.suites is ready to help. They offer short-term or long-term rentals for lease to attorneys who already have a home office but need a space in the area to conduct business, or solo practitioners and small firms that need a new place to call their headquarters. The team at esq.suites understands how important legal work is, and are ready to support your business in a professional, headache-free environment.

In a professional where one mistake can ruin your career, shared office space for legal professionals is the answer. Instead of trying to get your work done on the fly, spending time in your car or local coffee shops, esq.suites offers a community to attorneys with flexible rental Continue Reading ›

Commercial Office Lease Negotiation Checklist – Pro-Tenant

Published on: June 18, 2018 | by ESQ.title

By: Alejandro E. Jordan, Esq.

This Article provides you with tips to create a concise and effective negotiation checklist and the key points you should consider when negotiating a lease in a multi-tenant office building.

This Article also highlights key provisions you should pay close attention to often found in office leases.

At initial glance, a 20, 30 and sometimes 40 page commercial office lease agreement may seem daunting. However, with a properly drafted checklist, a savvy negotiator can swiftly navigate this legal document by making sure that all of the key provisions of the lease have been accounted for (or at least, that you know what you are getting yourself into before you are bound by its terms). A wise person once said, “Organization is the key to success.”

A good summary or checklist can be a useful tool for tenants to:

Keep track of on-going lease negotiations.
Quickly reference the key provisions in your lease.
Summarize the final key terms of your final executed lease.

CMBS – Commercial Loan Maturity: The “Wall of Maturities” – Status Update

Published on: July 8, 2017 | by ESQ.title

By: Alejandro E. Jordan, Esq.

According to reporting by Morningstar Credit Ratings LLC, commercial real estate mortgage borrowers with maturing loans paid them off at a slower rate as of May 2017. Peter Grant of the Wall Street Journal suggests this slower payoff rate, and the ensuing swell in delinquent/unpaid loans, can be at least partly attributed to 10-year mortgage loans taken out by borrowers in 2007, which got repackaged into commercial mortgage backed securities (CMBS). This mass of maturing debt, which many are referring to as the “Wall of Maturities,” is coming due and many people are concerned about the effect it may have on the real estate market, as well as the economy as a whole.

We all remember the mess that was created, and exacerbated, by the high risk lending that was prevalent across the country ten years ago. Continue Reading ›

Market Report – 2017 Q1 South Florida Pre-Construction Condo Market Update

Published on: May 18, 2017 | by ESQ.title

By: Alejandro E. Jordan, Esq.

Ladies & Gentlemen, we have already arrived at the second week of May, which can only mean two things:

1. The Miami Marlins are almost out of the playoff hunt (already); and

Market Report – Residential Condo Market in Miami, South Florida – March 2017

Published on: March 13, 2017 | by ESQ.title

By: Alejandro E. Jordan, Esq.

The Miami Downtown Development Authority’s Annual Residential Market Study Update for the Greater Downtown Miami area, prepared by Integra Realty Resources (IRR), came out in early February, and is full of interesting/useful information. In this post we will discuss a few of the attention-grabbing tidbits from the Miami Downtown Development Authority (MDDA) report, and begin to address how some of these developments are going to affect you as buyers/sellers here in the Miami area.

According to the Senior Managing Director for IRR, Anthony M. Graziano, and Market Research Analyst, Dan Bowen, a big picture view on the state of the market should recognize that while inventory is up, there is no distress in the market. New pre-construction deliveries closed out successfully in 2016, demonstrating buyer confidence.

Resale pricing retreated modestly (6% – 7%), reflecting both a correction after five consecutive years of growth, as well as a stronger US Dollar, resulting in nominal price increases for most foreign buyers, according to the MDDA report.

With regard to condo delivery, the report notes that the greater downtown Miami area saw the largest volume of delivery (2,202 units delivered in 2016) since 2008, although it was also noted that this figure is mostly in line with the expected 11-year and 15-year cycle of absorption.