Legal services for commercial 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 
Legal advice for leases
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.
CONTACT OUR
COMMERCIAL LEASES 
LAWYERS

SIGNING A LEASE

 
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.

FREQUENTLY ASKED QUESTIONS

Some common questions our lawyers answer in relation to commercial leases include:

In Victoria, the leasing of a “Retail Premises” is governed by the Retail Leases Act 2003. This Act creates additional obligations and responsibilities for landlords and is designed to offer a degree of protection to retail tenants. For example, a tenant must be provided with a disclosure statement in the prescribed format under section 17 of the Act at least 14 days prior to signing the lease. Section 4 of the Retail Leases Act 2003 defines a Retail Premises as premises that are wholly or predominantly for:


  • the sale or hire of retail goods or provision of retail services or
  • the carrying on of a specific business or a specified kind of business that the Minister determines, under section 5, based on the kind of business, tenant or lease.

In Victoria, most leases for commercial premises will require a tenant to pay rent plus outgoings. This means that the tenant is responsible to pay outgoings in addition to the agreed rental amount and are typically in addition to the usage of services (such as water, gas, electricity) by the commercial tenant. This is different to a residential tenancy agreement, where typically a tenant will only pay a set amount of rent and only their usage of services. To ensure certainty, the lease should clearly define what is classified as an outgoing. Prior to signing a lease, it is a good idea for a tenant to ask for an estimate of annual outgoings so that they are fully aware of the costs involved in the lease

A commercial lease is a serious and binding legal document that should not be taken lightly. We reccomend all landlords and tenants to obtain legal advice before entering into a commercial lease. Getting the right advice from a qualified commercial lawyer at the outset can help prevent a costly dispute in the future. 

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