Common questions about commercial real estate in Fort Lauderdale and Broward County — leasing, sales, costs, lease structures, submarkets, and working with a commercial real estate broker. Answered by Adam Docktor at Native Realty.
Working with a Broker
What does a commercial real estate broker do?
A commercial real estate broker represents businesses, investors, and property owners in transactions involving commercial property — leasing, buying, and selling office buildings, warehouses, retail centers, industrial properties, multifamily buildings, and land. The broker’s job is to find the right property or the right tenant/buyer, negotiate the deal terms, manage paperwork from LOI through closing, and protect the client’s interests throughout the process.
Commercial real estate brokers work differently from residential agents. Commercial deals involve more parties (attorneys, lenders, environmental consultants, surveyors), more complex lease and purchase agreements, and longer timelines. Most commercial brokers specialize in either tenant/buyer representation, landlord/seller representation, investment sales, or specific property types like industrial or retail.
Do I have to pay a commercial real estate broker?
For tenants, almost never. In a commercial leasing transaction, the landlord pays the broker commission — which is typically split between the listing agent (representing the landlord) and the tenant rep broker (representing you). If you don’t hire your own broker, that commission still gets paid to the listing agent. You get professional representation at zero direct cost.
For buyers in a commercial sale, the seller typically pays the buyer’s agent commission, though deal structures vary. In either case, hiring an exclusive broker to represent you is almost always financially beneficial.
What’s the difference between a commercial real estate broker and agent?
The terms are often used interchangeably, but technically a broker holds a higher-level license than an agent and can run their own brokerage. An agent works under a broker’s license. In practice, both serve clients in commercial real estate transactions.
What matters more than the title is the person’s specialization — many residential agents call themselves “agents” but don’t have the commercial training, market knowledge, or deal experience to handle commercial transactions well. When hiring, look for active commercial transaction history in your specific market and asset type — not just the title on the business card.
How do I choose the right commercial real estate broker in Fort Lauderdale?
The best broker for you specializes in commercial real estate (not residential), works actively in Fort Lauderdale and Broward County, has experience in your specific asset type (warehouse, office, retail, industrial, multifamily), and represents your side of the transaction exclusively. Ask for their last 12 months of closed transactions in your property type. Ask whether they represent both sides of deals (dual agency creates conflicts). Ask for references.
I wrote a detailed guide on how to choose a commercial real estate agent in Fort Lauderdale that walks through the full evaluation process.
Should I use the listing broker or hire my own?
You should almost always hire your own broker. The listing broker represents the LANDLORD or SELLER — not you. They have a fiduciary duty to get the best terms for the OTHER side of the transaction. When you “save money” by going direct to the listing broker, you’re really just losing your representation. The commission still gets paid.
Hiring your own tenant or buyer rep costs you nothing additional and means you have a professional on YOUR side throughout the negotiation. I wrote about why tenant representation costs you absolutely nothing in more detail.
Lease Basics
What is a triple net (NNN) lease?
A triple net lease, or NNN lease, is a commercial lease structure where the tenant pays base rent PLUS three categories of additional costs: property taxes, building insurance, and common area maintenance (CAM). These three “nets” are why it’s called triple net.
NNN leases are the dominant structure for retail, industrial, and many office spaces in South Florida. The base rent number you see quoted is just part of the total cost — you need to add the NNN charges (often $5-15/sf additional, depending on property) to understand your true cost.
What does NNN mean in commercial real estate?
NNN stands for “Net Net Net” — referring to the three operating expenses (taxes, insurance, common area maintenance) that the tenant pays on top of base rent. When you see a commercial property advertised at “$20/sf NNN” or “$20/NNN” — that’s $20 per square foot base rent, with NNN charges separate.
The actual all-in cost might be $25-30/sf when you add NNN. Always ask the listing broker for the current NNN amount before signing anything.
What is tenant improvement allowance (TI)?
Tenant improvement allowance (TI) is money the landlord agrees to spend on customizing the space for the tenant. It’s expressed as a dollar amount per square foot ($25/sf TI, for example), which the landlord credits toward construction, demolition, paint, flooring, HVAC modifications, lighting, and other build-out costs.
TI is heavily negotiated in commercial leases. Generous TI ($30-60/sf for office, less for warehouse) signals a desirable tenant or a softer market. Light TI ($5-15/sf) signals a strong market or a tenant the landlord values less. For more detail, see my guide on Fort Lauderdale commercial buildout costs.
What’s the difference between gross lease and net lease?
In a gross lease, the tenant pays one flat rent and the landlord covers all operating expenses (taxes, insurance, maintenance, utilities). In a net lease, the tenant pays base rent PLUS some or all operating expenses depending on how many “nets” are in the structure (single net = taxes, double net = taxes + insurance, triple net = all three).
Gross leases are more common in office. Net leases (especially NNN) dominate retail, industrial, and warehouse. Modified gross is a hybrid where the tenant pays base rent plus increases over a base year.
How long are typical commercial leases in Fort Lauderdale?
Most commercial leases in Fort Lauderdale and Broward County run 3-10 years. Office leases typically 3-7 years. Retail 5-10 years. Industrial 3-10 years. Longer terms give tenants more negotiating leverage on rent and TI but commit them to less flexibility.
Tenants asking for very short terms (1-2 years) usually pay premium rent or get minimal TI. Landlords prefer longer leases because they reduce vacancy risk and amortize the cost of build-out.
Can commercial lease terms be negotiated?
Yes — almost everything in a commercial lease is negotiable. Base rent, escalations, free rent (1-3 months upfront is common), TI allowance, renewal options, expansion rights, exclusivity (in retail), assignment and subletting rights, NNN cap rates, parking allocations, and signage rights are all negotiable.
The right negotiation depends on the property, the market, and your leverage as a tenant. A tenant rep broker who knows the local market is usually worth the negotiation savings alone.
Sales and Investment
What is cap rate in commercial real estate?
Capitalization rate (cap rate) is a measure of a property’s expected annual return based on its current income. It’s calculated as net operating income (NOI) divided by purchase price. A $1M property generating $70K NOI/year has a 7% cap rate.
Cap rates vary by asset type and market. In South Florida, industrial cap rates are typically 5-7%, multifamily 4-6%, retail 6-8%, and office 6-9% depending on submarket and tenant quality. Lower cap rate = higher price = more “desirable” (and lower-yield) property. Higher cap rate = riskier or less prime = higher yield.
What is a 1031 exchange and how does it work?
A 1031 exchange (named after IRS Section 1031) allows a commercial real estate investor to sell a property and reinvest the proceeds into another “like-kind” property, deferring capital gains taxes. To qualify, the new property must be identified within 45 days of the sale and the transaction must close within 180 days.
1031 exchanges are common for South Florida CRE investors — they let you grow your portfolio without losing 20-30% of every sale to taxes. The process has strict rules around qualified intermediaries, identification timelines, and “like-kind” definitions. Work with a CPA and a CRE broker who understands the timing pressure.
How long does it take to close on commercial property?
A typical commercial real estate sale closes in 60-120 days. The timeline includes the LOI phase (1-2 weeks), purchase contract (1-2 weeks), due diligence period (typically 30-60 days), and closing (1-2 weeks). Cash deals can close faster (45-60 days). Loan-financed deals usually take 90-120 days because of the lender’s underwriting and appraisal timelines.
Properties with environmental concerns, complex title issues, or commercial tenants in place can stretch longer. Lease transactions close faster than sales — typically 30-60 days from LOI to signed lease.
What’s a typical commission on a commercial sale?
Commission on commercial property sales in South Florida is typically 4-6% of the sale price, split between the listing broker and the buyer’s broker (usually 50/50). For very large transactions ($10M+), commission percentages often decline. For smaller transactions ($500K-2M), 5-6% is normal.
Commission on commercial leases is typically calculated as a percentage of the total lease value over the lease term — often 4-6% of the first year plus declining percentages for subsequent years. The landlord pays this in nearly all cases.
Cost Questions
How much is commercial rent per square foot in Fort Lauderdale?
Rent varies widely by submarket and asset type. Rough ranges for Fort Lauderdale and Broward County as of 2026: Office $25-50/sf NNN for Class A, $18-30/sf NNN for Class B; Retail $25-75/sf NNN depending on location (Las Olas premium, suburban strip lower); Warehouse/Industrial $12-22/sf NNN for general distribution, higher for cold storage or coastal; Flex space $18-28/sf NNN; Medical office $30-45/sf NNN.
These are NNN base rents — actual occupancy cost is higher once NNN charges (typically $5-12/sf additional) are added. Submarket matters significantly — beach-adjacent and downtown Fort Lauderdale carry premiums.
How much does it cost to lease office space in Fort Lauderdale?
Office leasing costs in Fort Lauderdale typically run $18-50/sf NNN depending on class and submarket. A 3,000 sf Class B office space in a mid-tier building might run $20/sf NNN ($60,000/year base) plus $8-10/sf NNN ($24,000-30,000/year for taxes, insurance, CAM). Total annual occupancy cost roughly $84-90K for a mid-market 3,000 sf office.
Beyond rent, factor in build-out costs (if TI doesn’t cover), furniture, IT setup, security deposits (usually 1-2 months base rent), and pro-rated insurance. For current FL office availability, see my office space for lease in Fort Lauderdale page.
What are typical warehouse rents in Pompano Beach and Broward County?
Pompano Beach industrial rents typically run $12-18/sf NNN for general distribution, $14-22/sf NNN for newer buildings or buildings with higher clear height and dock-door ratios. Smaller bay units (under 5,000 sf) often command higher per-sf rates than larger blocks.
Cold storage, last-mile distribution, and waterfront industrial command premiums. NNN charges typically add $4-8/sf to the base rent. Vacancy in industrial across Broward County has been historically low — landlords have leverage in 2026. See my warehouse space for rent in Pompano Beach page for active listings.
What are typical retail rents in Fort Lauderdale?
Retail rents in Fort Lauderdale span a wide range. Premium corridors like Las Olas Boulevard and certain Sunrise Boulevard locations can run $50-100+/sf NNN. Mid-tier retail along Federal Highway, Sample Road (Pompano), or Hollywood Boulevard typically runs $25-45/sf NNN. Suburban strip centers and inline retail in less prime locations: $18-30/sf NNN.
Retail leases often include additional structures like percentage rent (a percentage of gross sales above a threshold), exclusivity clauses, co-tenancy clauses, and tenant mix protections. The base rent number is only part of the deal.
Asset Types
What’s the difference between Class A, B, and C office space?
Class A office is newer, well-located, with high-end finishes, modern HVAC, robust amenities (parking, gym, lobby), and typically professional management. Las Olas Centre, Cypress Plaza, and similar buildings are Class A in Fort Lauderdale. Rents: $30-50/sf NNN.
Class B is older but well-maintained, with functional finishes and decent location. Most office tenants in Fort Lauderdale work in Class B buildings. Rents: $18-30/sf NNN.
Class C is older with dated finishes, less prime locations, or buildings that haven’t been recently renovated. Suits cost-conscious tenants who don’t need a premium image. Rents: under $18/sf NNN.
What is small bay industrial space?
Small bay industrial space refers to industrial units typically between 1,000 and 5,000 square feet — common for small distributors, light manufacturers, contractors, e-commerce fulfillment, and service businesses that need warehouse space without the scale of a full distribution building.
I wrote a complete guide to small bay industrial space in Fort Lauderdale covering the submarkets, typical lease terms, and what to look for.
What’s the difference between a vanilla shell and cold dark shell?
Cold dark shell delivery means the landlord gives you a bare space — concrete floors, no HVAC, no electrical drops, no walls. You build out everything yourself.
Vanilla shell (or “vanilla box” or “warm shell”) delivery means the landlord provides basic finishes: drywall, ceiling, HVAC, lighting, electrical, restrooms, and sometimes flooring. You add your customizations on top.
The choice affects TI allowance, build-out cost, and timeline. I wrote a detailed comparison of vanilla shell vs cold dark shell that explains the tradeoffs.
Geographic
What are the major commercial submarkets in Fort Lauderdale?
Fort Lauderdale’s main commercial submarkets: Downtown CBD (Las Olas, 17th St) — Class A office, premium retail, high-end services; Cypress Creek corridor — Class A and B office along I-95; Sunrise Boulevard — mixed-use, retail, regional office; Federal Highway corridor — retail-heavy, mixed-use; Las Olas Boulevard — premium retail and restaurant; Andrews Avenue/Flagler Village — emerging mixed-use, light industrial; Beach districts — hospitality, retail, premium pricing.
Each submarket has its own pricing dynamics, tenant pool, and lease customs.
What are the most active industrial submarkets in Broward County?
Pompano Beach is the dominant industrial submarket — the Sample Road / Powerline Road corridor is dense with warehouses, light manufacturing, and distribution. Fort Lauderdale (along I-95, especially near downtown) has older industrial product undergoing redevelopment. Davie and Sunrise to the west have growing industrial. Deerfield Beach is an underrated submarket with strong I-95/FEC access. Hollywood has industrial along the I-95 corridor.
For a broader view, see my Fort Lauderdale industrial real estate market article or my Broward County commercial real estate page.
Should I lease commercial space in Fort Lauderdale, Pompano, or Dania Beach?
Depends on your business and goals. Fort Lauderdale is best for professional services, retail, restaurants, hospitality, and tenants who want premium addresses — higher rents but stronger brand and foot traffic. Pompano Beach is best for warehouse, industrial, distribution, light manufacturing — lower industrial rents than Fort Lauderdale, excellent highway access. Dania Beach is best for design industry tenants (DCOTA), aviation-adjacent businesses (proximity to FLL), and tenants wanting Fort Lauderdale proximity at slightly lower cost.
For service businesses, Fort Lauderdale wins on visibility. For operational businesses, Pompano wins on cost and infrastructure. For a Dania-specific deep dive, see my Dania Beach office space at DCOTA page.
Have another question?
If you have a commercial real estate question that isn’t covered here, call or text me directly at (954) 610-0440 or email [email protected]. I respond fast — including evenings and weekends — because commercial deals don’t follow 9-to-5 schedules.