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What Is A “Full Service” Office Space Lease?

When locating office space have you noticed several properties have different items included in the monthly rent? This is due to the different types of lease structures. Typically, there are three different industry wide: Full Service, Modified Gross and Triple Net. A Full Service lease is used most common among the buildings in the higher end of the market such as class A and multi-story buildings. Typically office space in the business and downtown area districts like Westshore, Downtown Tampa and South Tampa offer a full service lease. However, these leases are also used in the different submarkets throughout Tampa.

The term “full service” often refers to the inclusion of the building‘s operating expenses in your monthly payment to the Landlord such as:

  • Renting of the office space
  • Electric
  • Maintenance and replacing of Air Conditioning, lights, landscaping and other common areas
  • Insurance
  • Water
  • Real Estate Taxes
  • Janitorial (cleaning) services; which are usually 3-5 times a week

The definition of “full service” is not black and white. It’s important the operating expenses the Landlord is covering is clearly defined in the lease. For example, I have seen an office building referred to as “full service” but it included janitorial service in the rent but not electric. An example of a full service building could be Mr. Tenant’s light bulb in his ceiling tile when out, all Mr. Tenant has to do is call the Landlord’s property manager to fix the issue.

A key factor in a full service lease is understanding a Tenant will be monetarily responsible for operating increase of the building that was higher than the projected budget factored into your monthly rent. The amount you owe the Landlord is dependent on the base year of the lease and size of your office space.

What is the base year? The base year usually reflects the first calendar year of the lease. The base year is used to determine your base for operating expenses. For example, your base year is 2017 and the actual operating expenses were $8 SF. At the end of every day, the Landlord reconciles their operating expenses of projective versus actual. Generally, Landlords do their best to accurately budget each year, however, Landlords do not have control over real estate taxes, insurance and unexpected maintenance or updates for the building which could lead to overage. In 2018, if the actual operating expenses is $10 SF, then the Landlord will invoice you separately for the $2 SF overage based on your square foot leased.

It’s important to request the information below:

  • Operating expense reconciliation for the past two years
  • Has the Landlord invested into improvements that year or (does he) plan to in the near future?

These two questions will aid in deciding which base year to request during negotiation.

When reviewing operating expense pass thru, it is important to know if the Landlord has a history of being over budget and to what extent, so you will not be surprised when you receive a bill at the end of the year.

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How to Enjoy the Outdoors When Tampa Temperatures Soar

You have probably heard or said at least once, “there are no seasons in Florida.” The truth is there are seasons, and sometimes all in the same day! From May through October it is not uncommon to have a brilliant bright sunny day that ends in a mini monsoon. If you have lived for any length of time in Tampa, you might even welcome the rains at this time because the temperatures suddenly dip and it can be a refreshing respite from the heat.

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5 Feng Shui Office Space Tips for Creativity and Efficiency

According to the Meriam-Webster dictionary Feng Shui is a Chinese geomantic practice in which a structure or site is chosen or configured so as to harmonize with the spiritual forces that inhabit it; also orientation, placement, or arrangement according to the precepts of feng shui. Feng shui literally means “wind and water.” Even if you don’t adhere to Chinese spiritual beliefs of yin-yang, there is something to be said for balancing the energy in your office space, thereby producing a more productive, creative and motivating work environment.
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Office Space Brokers Tees Off with Abe Brown Ministries

On Saturday, June 4, 2016, Abe Brown Ministries held their 5th Annual Abe Brown Legacy Golf Tournament. Anthony “Booger” McFarland, a two-time winner of the Super Bowl, hosted the sold-out tournament at the Innisbrook Resort’s newly restored Copperhead Golf Course. Booger is a college football analyst for SEC Network, the 24/7 multi-platform network devoted to the Southeastern Conference and operated by ESPN.
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