The tenant (the business occupying the space) who signs a commercial lease agreement is generally expected to be a more savvy, sophisticated, and informed tenant (also known as a lessee) than a tenant in a residential lease, and the law usually does not provide a commercial tenant with the same protections as residential tenant receives.
Because the law does not provide a commercial tenant with many protections, it is up to the commercial tenant to read, understand, and negotiate protections in a proposed lease agreement before signing it, as most every paragraph in a commercial lease agreement can have a significant impact on a business’s operations and financial stability.
Laws vary from state to state, but a commercial landlord’s ability to shut off a tenant’s utilities is usually determined by the terms of the lease agreement and the state’s contract law—to determine, for example, if any breach of the lease agreement by the tenant was a material breach that might justify an extreme measure such as shutting off the utilities.
Contract law in most states recognizes an implied duty of good faith and fair dealing between parties to a contract, and a commercial landlord who shuts off a tenant’s utilities because the tenant is a few days late paying the rent may be in breach of the landlord’s implied duty of good faith and fair dealing.
In Florida, commercial tenants are indeed considered more sophisticated than residential tenants and are thus afforded fewer legal protections under the law. Florida statutes and case law expect commercial tenants to be diligent in understanding and negotiating the terms of their lease agreements. The protections that residential tenants enjoy, such as those related to eviction procedures and habitability requirements, do not typically extend to commercial leases. As such, it is crucial for a commercial tenant to thoroughly review and negotiate the lease terms to secure their rights and interests. Regarding utility shutoffs, Florida law does not specifically protect commercial tenants from having their utilities shut off by landlords; instead, this is governed by the lease agreement and general contract law principles. The lease should outline the circumstances under which a landlord may or may not terminate utilities. Additionally, while Florida recognizes the implied covenant of good faith and fair dealing in contracts, a landlord's decision to shut off utilities for a minor lease violation may be seen as a breach of this duty. However, each situation would be evaluated on a case-by-case basis, considering the specific terms of the lease and the nature of the breach.