How to Know If You Can Do the Buildout Work Yourself
Florida's owner-builder exemption lets a property owner do their own buildout work in some cases, but it does not apply to a building offered for lease (Florida Statutes, section 489.103(7)).
At Reach Commercial Real Estate, we represent tenants. We help you find locations, compare costs, investigate property questions and negotiate the lease.
1. Know who the owner-builder exemption covers
The exemption covers property owners who act as their own contractor and supervise the work on site themselves. On a commercial building, the work can cost up to $75,000, and the building has to be for the owner's own use, not offered for sale or lease (section 489.103(7)(a)1.).
The commercial part of the rule names owners only. The one place the subsection mentions a tenant is a shingle-repair rule for homes (section 489.103(7)(a)2.).
2. Know what an owner-builder has to do
An owner who qualifies still has to:
Supervise all the work on site personally, or hand that job only to someone licensed for the work (section 489.103(7)(b)).
Appear in person and sign the building permit application (section 489.103(7)(c)).
If the owner sells or leases the building within a year of finishing, the law presumes the work was done to sell or lease it (section 489.103(7)(a)1.).
3. Know which buildout work needs a licensed contractor
Florida licenses contractors by trade:
A general contractor can take on any type of work (section 489.105(3)(a)).
A building contractor can build commercial buildings up to three stories, or remodel a building of any size if the work doesn't touch the structural members (section 489.105(3)(b)).
Roofing, plumbing and mechanical work each have their own license (section 489.105(3)).
Electrical contractors are licensed under a separate part of the law (section 489.505(12)).
A general contractor has to subcontract the electrical, mechanical, plumbing, roofing, sheet metal and air-conditioning work unless they hold the license for that trade (section 489.113(3)).
Acting as a contractor without being registered or certified is prohibited (section 489.127(1)(f)).
4. Know what the permit application asks for
In Melbourne, a permit application goes through the city's online permitting system. It asks for proof of property ownership from the property owner, such as a deed or tax statement, a description of the work and the estimated value of construction (Building Section FAQ).
In unincorporated Brevard County, the Commercial New Construction application lists an owner-builder form if applicable, a subcontractor authorization and a Notice of Commencement if the job is over $5,000.
5. Settle who does the work in your lease
Our tenant checklist asks when a licensed general contractor is needed and what the lease says about landlord work versus tenant work.
You can ask for a TI allowance and free rent during the buildout. Once you pick a property, we negotiate the business terms, and your Florida commercial leasing attorney reviews the legal language.
Extra items to add to your list
Impact fees. In unincorporated Brevard County, they are due before pre-power or final inspection, whichever comes first.
A water service certificate. The county's Commercial New Construction application lists a Potable Water Service Capacity Availability Certificate or Reservation Certificate.
Your sign. Melbourne's Building Section lists signage among the work that requires a permit.
Insurance requirements. Keep track of them with your possession date and rent commencement.
Start your search with Reach
You do not need to find the property before calling us. In most deals the landlord pays our fee.
Call 321-514-0876 with your business type, budget, preferred area and target opening date, or with the address of a space you have found.
Related: the leasing guide and the guide to operating expenses.
Frequently Asked Questions
Does a business tax receipt count as a contractor license?
No. Florida law says a business tax receipt is not a license for contracting (section 489.127(1)).
What is the penalty for unlicensed contracting in Florida?
It is a first-degree misdemeanor (section 489.127(2)(a)).
Does Florida's $7,500 permit exemption cover commercial space?
No. That exemption is for owners of single-family homes doing work under $7,500 (section 553.79(1)(g)1.). Otherwise, Florida law requires a permit before anyone builds, alters, repairs or demolishes a building (section 553.79(1)(a)).
Sources
Written by Cassandra Hartford, founder and CEO of Reach Commercial Real Estate. She has worked in Brevard County commercial real estate for 17 years, representing buyers, sellers, landlords, and tenants across Florida's Space Coast.
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