A business that leases real estate and improvements (buildings, etc.) in the form of space for offices, a warehouse, a restaurant, a nail or hair salon, a clothing store, a coffee shop, or other commercial (nonresidential) space will usually be required to sign a written contract known as a commercial lease agreement.

If the tenant (the business occupying the space) who signs a commercial lease agreement fails to pay the rent on time, the landlord may have the right to charge late fees, terminate the lease, and lock the commercial tenant out of the space by changing the locks.

A commercial landlord’s ability to charge late fees generally depends on the specific language in the written lease agreement and the state's contract law.

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 charges late fees because the tenant is an hour late paying the rent may be in breach of the landlord’s implied duty of good faith and fair dealing—unless, for example, the lease agreement specifies an hour (12:00 p.m.) of the day by which rent is due and states that time is of the essence.

In Florida, a business that leases commercial space such as offices, warehouses, or retail stores will typically enter into a commercial lease agreement. This contract outlines the terms and conditions of the lease, including the payment of rent. If a tenant fails to pay rent on time, the landlord may impose late fees, terminate the lease, or lock the tenant out, but these actions must be in accordance with the terms specified in the lease agreement. Florida law requires that any late fees charged must be considered reasonable and not punitive. The lease should clearly state the due date and time for rent payments, and if it specifies that time is of the essence, then strict adherence to the payment schedule is required. Additionally, both parties are subject to an implied duty of good faith and fair dealing, which means that a landlord's actions, such as charging late fees for slightly delayed payments, should not be arbitrary or unfair, and must align with the lease's provisions and the reasonable expectations of the parties.