Proposed Bill Could Spell Trouble for the Commercial Leasing Process in Jax
Updated: Sep 1, 2019
A proposed ordinance to add steps to the commercial real estate leasing process could be damaging for business in Jacksonville. As reported by the Jax Daily Record here a city council member has proposed an ordinance requiring a Building Confirmation Letter as part of the Certificate of Use application process. The intent of the bill is to protect small businesses from leasing space not compatible with the operation of their business. This may sound like a good thing, but if you scratch below the surface this may be costly for both tenants and landlords alike.
The Problem
Zoning issues and building code requirements are routinely identified prior to the signing of any commercial lease. If an issue arises after the commencement of a lease, most leases outline a path to resolution or lead to re-negotiation. If this ordinance were to pass it could unnecessarily add a lengthy bureaucratic step that could increase vacancy factors for most commercial real estate property owners. This would upset the bottom line of a property owner, who would eventually pass this expense along to tenants in the form of increased rent, upsetting their bottom line as well. Additionally, property owners would be very hesitant to offer shorter lease terms that normally benefit growing businesses. All of this could dampen small business growth across the city.
Our agents at Addison Commercial Real Estate know their market and stay on top of the issues that affect our clients. We partner with landlords and tenants, buyers and sellers and provide amazing value to our clients.
Jake Ammon is a Vice President with Addison Commercial Real Estate in Jacksonville, FL. He specializes in commercial investment properties. Contact him at jake@acrei.com or call Jake at 1-904-834-9809.
