Key Money
Michael R. Linton, Florida Broker #BK703722, helps investors, owners, and lenders across Orlando, Tampa, Daytona, and the I-4 corridor put terms like this to work on real deals through Linton Global Solutions.
Key money is a one-time payment made to secure a lease, usually for scarce or desirable space. It may be paid by an incoming tenant to the landlord or to an outgoing tenant assigning its lease.
Unlike a security deposit, key money is generally not refundable; it is the price of access to the space or the lease terms.
When It Shows Up
Key money is most common in tight retail and restaurant markets, where a tenant with a below-market lease in a strong location can command a payment for assigning it. Landlords sometimes ask for it when demand for a space is high.
Points to Negotiate
Read the lease's assignment clause first: many leases require landlord consent and some give the landlord a share of any assignment premium or a recapture right. Tax treatment of the payment should be reviewed with a CPA.
A Hypothetical Example
A restaurant operator pays an outgoing tenant $75,000 to take over a lease with six years left at below-market rent in a busy corridor. The landlord consents under the lease's assignment clause. Hypothetical scenario; not legal or tax advice.
From the Desk
Key money is only worth paying if the remaining lease term and rent beat what you could sign directly. Run it as a present-value comparison.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39 years in commercial real estate, first in Chicago, now in Florida, across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your Key Money Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years in commercial real estate, first in Chicago and now in Florida, with proprietary AI-powered analytics via REOMind.ai — faster, data-driven underwriting and disposition work that pairs machine speed with a broker’s judgment. Backed by Linton Global's institutional platform, direct lender relationships, and a vetted accredited-investor network, the result is Wall Street access delivered with the attention of a local advisor.
Frequently Asked Questions
What is key money?
A one-time payment to secure a lease or desirable space.
Is it refundable?
Generally no, unlike a security deposit.
Who receives it?
The landlord, or an outgoing tenant assigning its lease.
Does the landlord have to consent?
Most leases require consent to assignment; check the clause.
How should I evaluate it?
Compare the lease's value against market terms you could get directly.
Article Summary
Key money is a non-refundable payment for access to a lease or space, common in tight retail markets and governed by the lease's assignment terms.
Key Takeaways
- ✓One-time lease payment.
- ✓Usually not refundable.
- ✓Common in tight retail.
- ✓Check assignment clause.
- ✓Value it against market.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39 years in commercial real estate, first in Chicago and now in Florida, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving a network of banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Florida Department of Business and Professional Regulation. "License Verification: Michael R. Linton, Florida Broker BK703722." MyFloridaLicense.com, https://www.myfloridalicense.com/wl11.asp. Accessed Oct 8, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: Linton Global Solutions is a Florida-licensed real estate brokerage, not a broker-dealer, investment adviser or lender, and does not offer or sell securities. CREDDS and REOMind.ai provide decision support only. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.