Commercial and Retail Leases

Leasing a commercial property is an important decision and one which should not be taken lightly. A lease is a contract between a landlord and tenant which sets out each of their rights and responsibilities. Certainty and precision in the lease document is critical to ensuring that both parties are aware of their rights and responsibilities under the lease. 

Our lawyers are regularly engaged to draft and review commercial leases and retail lease in their pre-contract stage. We have the expertise to assist you with: 

• Leasing of retail, commercial or industrial premises
• Transfer or assignment of leases
• Lease renewals or exercise of options 
• Subleases 
• Tenancy disputes including breaches, termination, relief against forfeiture and obtaining possession

Some key issues to consider with commercial leases are: 

1. What is the permitted use of the premises and does it conform with the business that you plan to operate? A commercial lease will generally specify the purpose for which the premises can be used. It is important that it accurately record the nature of the proposed commercial operations in the premises by an incoming tenant. 
2. What are the outgoings that are payable? The majority of commercial leases require tenants to pay both rent and outgoings. This means the renter is responsible for additional expenses over the rental amount. The outgoings should be clearly defined in the lease.  
3. What is the term and options for further terms of the lease? Most tenants will want to negotiate longer options for their leases so that if they sell their business in the future, they can transfer a lease with remaining options. 
4. What is the method of increasing rent? Most leases will provide either a fixed percentage increase, Consumer Price Index increase or a Market Review as the method of increasing the rent each year. 
5. Is there a requirement for a guarantee and security deposit? Most landlords will only lease a premises to a tenant that is a company if its director signs a personal guarantee for the lease. 

Our skilled commercial lawyers in Essendon North and Melbourne can assist you in achieving a lease arrangement that works out for you in the long run, regardless of whether you are the owner of the property or the business tenant of the premises. We are experts in drafting leases as well as in the settlement of disputes pertaining to commercial leases. You can be sure that our expertise will translate into both effective and practical representation. Our clients are kept informed of their rights and legal responsibilities that come with both being a tenant or landlord.