Commercial Leasing Law & Lawyers
Retail and commercial lease negotiations, disputes, and renewals.
A commercial lease agreement is a contract between a landlord and a business for the rental of property. Most businesses will choose to rent property instead of buying it because it requires less capital. Before signing a commercial lease, it is important to obtain legal advice to understand the lease contract that defines the rights and responsibilities of each party, that is, between the landlord or lessor and the tenant or lessee.
If you have a legal matter concerning a commercial lease, then please complete your enquiry form on the right, or click here, to be put in contact with a specialist commercial leasing lawyer.
Commercial leasing also involves the grant and renewal of commercial leases, the sale and purchase of investment commercial and residential development property subject to occupational leases and commercial landlord and tenant development work as well as all aspects of the management of commercial property.
If you have a legal matter concerning a commercial lease, then please complete your enquiry form on the right, or click here, to be put in contact with a specialist commercial leasing lawyer.
As also mentioned below, Commercial Leasing Lawyers, areas of expertise include:
• Commercial Landlord and Tenant and Investment
• Commercial lettings
• Sale and purchase of investment properties subject to occupational leases
• Lease renewals
• Rent reviews
• All aspects of work arising from the Landlord and Tenant legislation
• Management of commercial investment property
If you have a legal matter concerning a commercial lease, then please complete your enquiry form on the right, or click here, to be put in contact with a specialist commercial leasing lawyer.
Generally speaking, Commercial Lawyers provide advice to both Landlords and Tenants on all tenancy related matters e.g. new leases, renewal of existing leases, meanwhile leases, negotiating leases and pre-let arrangements.
From a Landlord’s perspective we understand the need to maximise the return from leasing premises. From a Tenant’s point of view we know that renting or leasing a commercial property usually represents a major part of the operating costs of running a business.
Whether acting for a Landlord or Tenant, it is always the priority of a Commercial Leasing Lawyer to help negotiate the best possible terms and conditions to enable you to achieve your objectives.
Commercial Leasing Lawyers act for Landlords and Tenants dealing with a diverse range of transactions in varying circumstances.
The services of a Commercial Lawyer also includes:
• Advising on Heads of Terms
• Leasing of Retail Premises
• Grant and Renewal of Leases
• Assignments of Lease
• Transfer of Lease
• Termination of Lease
• Advising on terms of the Lease Agreement
• Short Term Letting Agreements
• Stamp Duty Land Tax
• Acquisition and Disposal of Leases of Business Premises
If you have a legal matter concerning a commercial lease, then please complete your enquiry form on the right, or click here, to be put in contact with a specialist commercial leasing lawyer.
Retail Leasing Legislation
There is no Federal regulation of the relationship between landlords and tenants in retail and commercial premises in Australia. Such regulation exists at state level, and differs for each state.
The relevant legislation for each state is as follows:
• Australian Capital Territory - Leases (Commercial and Retail) Act 2001
• New South Wales - Retail Leases Act 1994
• Northern Territory - Business Tenancies (Fair Dealings) Act 2003
• Queensland - Retail Shop Leases Act 1994
• South Australia - Retail and Commercial Leases Act 1995
• Tasmania - Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998
• Victoria - Retail Leases Act 2003
• Western Australia - Commercial Tenancy (Retail Shops) Agreements Act 1985
Business Leases
As stated above, specialist commercial property lawyers advise both landlords and tenants on a range of issues relating to commercial and business lease terms, whether offices, shops, industrial units, warehouses, retail units or any other type of commercial property.
If you have a legal matter concerning a commercial lease, then please complete your enquiry form on the right, or click here, to be put in contact with a specialist commercial leasing lawyer.
Broadly speaking, a commercial leasing lawyer provides the following expertise:
• Drafting and negotiating lease terms and contracts
• Assignments (transfers of existing leases) and sub-letting
• Enforcement of breach of lease
• Forfeiture (where landlord claims an entitlement to terminate the lease, usually for non-payment of rent)
• Specialist advice regarding offices, shops, restaurants or industrial units
• Issuing proceedings for the possession of premises
• Issues arising from the Landlord & Tenant Act 1954 and lease renewals
• Landlords' consents
• Service charge issues
• Recovery of possession
• Removal of unauthorised occupants
• Rent reviews/rent arrears
If you have a legal matter concerning a commercial lease, then please complete your enquiry form on the right, or click here, to be put in contact with a specialist commercial leasing lawyer.
Landlords - tips for negotiating business lease terms
For Landlords, the following are likely to be important issues to consider:
• The chance of tenant default;
• Ease of re-letting if tenant defaults, and time taken to find new tenant;
• Value of property;
• Acceptability as security for a loan;
• Cost of repairs and other expenses;
• Location;
• Rent deposit/personal guarantee
• Whether to agree break clauses/rent renewal clauses/should lease be renewable (contracted in) under the relevant law
Important considerations for tenants
A well advised tenant will always carefully check, take advice and and negotiate on, as necessary, amongst other things, responsibility and the position on :-
• internal and external maintenance and repair. Check if you’re responsible only for maintaining the premises in its current condition, otherwise you may be liable for damage or wear and tear that occurred before you occupied it.
• that the building meets fire, and health and safety regulations
• insurance for the premises and building
• that the premises have the right classification of use for your business
• access requirements under the Disability Discrimination legislation
• how much is the rent and is Vat payable on top
• when will the rent need to be paid
• what is the rent deposit, how will it be held, in what circumstances can the landlord draw on it
• what happens to interest earned and when can it be refunded
• does the rent include rates, if not how much are these?
• does the rent include any building insurance or other insurances?
• are service and maintenance charges included? does this include cleaning?
• are any shared services such as parking, security, reception staff included? If not how much are these?
• are utilities (gas electric, water, phone/communication lines, air conditioning) included and are they sufficient for your needs?
• how often, and when, will the rent be reviewed?
• are you able to sublet all or some of the space?
• can you access the building whenever you like or are there restrictions?
• If it’s a long-term arrangement are there any break clauses where both parties can terminate early, and what is the procedure
• Is the lease renewable?
If you have a legal matter concerning a commercial lease, then please complete your enquiry form on the right, or click here, to be put in contact with a specialist commercial leasing lawyer.
Further Resources - Commercial Leasing Law & Lawyers
NEWS, UPDATES & ALERTS - Commercial Leasing Law and Lawyers:
Retail Shops and Fair Trading Legislation Amendment Act 2006
In 2007, the Federal Productivity Commission considered the market for retail leases in Australia and it its final report, dated March 31, 2008, made eight key recommendations, which are summarised as follows:
1.State and Territory governments should encourage transparency of lease agreements through the use of plan English documentation, the provision of contact details for parties involved in lease negotiation, lease registration and dispute resolution; and the provision of a one-page summary of all key lease terms to be included in documentation
2.State and Territory governments should require one page lease summaries to be publicly accessible
3.Develop a national reference lease with a set of items (and terminology) to be included in all retail tenancy leases and landlord disclosure statements, as well as introduce nationally consistent reporting on tenancy enquiries, complaints and dispute resolution
4.The alignment of unconscionable conduct provisions (as applying to retail tenancies) between State and Territory governments with the Commonwealth
5.The introduction of a national voluntary code of conduct for shopping centre leases enforced by the Australian Competition and Consumer Commission
6.The removal by State and Territory governments of restrictions in retail leasing that provide no operational benefit compared with general commercial tenancies
7.A progressive modification of State and Territory legislation toward nationally consistent model legislation
8.A relaxation of planning and zoning controls that limit competition and restrict retail space and its utilisation
These recommendations are yet to be adopted.
If you have a legal matter concerning a commercial lease, then please complete your enquiry form on the right, or click here, to be put in contact with a specialist commercial leasing lawyer.
Commercial Property Leases Including Renewals And Forfeiture Of Lease
Commercial Leasing Lawyers have expertise and experience acting for both landlord and tenants in all aspects of commercial property leases. This is an area where it is always worth taking knowledgeable legal advice – leases for commercial property are often relatively complex and it is important that you fully understand the implications and obligations, in order to avoid costly mistakes.;
Some of the key areas to consider when drafting a lease are
Length of Term
In recent years there has been a growing tendency for Tenants to seek shorter terms. There are a number of pros and cons for both the parties to a commercial lease in this respect and it is worthwhile seeking advice to help establish the approach most suitable for your business and position.
Rent, rent reviews and break clauses
It is important to seek professional advice to establish the fair rent for the premises. You should also consider whether your lease should contain an ‘option to determine’, or in other words, whether the Landlord and Tenant should be entitled to break the Lease at some point during the term.
Obligation to Repair
It is important that the Tenant fully understands the extent of his obligation to repair, whether this is an internal repairing liability, a full repairing liability and/or a liability to refund a proportion of the costs incurred by the Landlord in repairing a building of which the premises form a part.
If you have a legal matter concerning a commercial lease, then please complete your enquiry form on the right, or click here, to be put in contact with a specialist commercial leasing lawyer.
Assignment or Sub-letting
When agreeing the terms for a commercial lease, the Landlord and Tenant should consider the arrangements for assignment or sub-letting.
Alterations
Most Landlords will wish to keep total control over the structure of the building and carefully drafted Lease should reflect this. However, a Tenant should consider whether he might need to make structural alterations and may wish to include this provision in the Lease.
Improvements
A Lease should state how a Tenant’s improvements are to be reflected when the rent is reviewed, particularly where the tenant has carried out extensive re-fitting works.
The Authorised use of the Premises
The Landlord should usually ensure that the "User" provisions in a Lease prevent a Tenant from changing its use to one which attracts a lower rental value than the use the Landlord intends. Equally, most Tenants will wish to make sure that the user provisions in the Lease allow him as much flexibility as is reasonable, so that if he has to assign the Lease, he is not unduly limited when the premises are marketed as to the type of business which the User provisions in the Lease allow to be carried on.
Formal Notices
It is important that the Commercial Landlord or Tenant has a full understanding of the need for and the effect of the formal Notices required in connection with Leases. These Notices cover the termination and renewal of Leases, the operation of Break Clauses, the operation of Rent Review provisions in Leases, and Repair and Dilapidation Notices in particular. Failure to serve or deal with Notices within the relevant time limits can result in severe consequences.
Forfeiture of Lease
Where necessary, Commercial Leasing Lawyers will assist with the repossession of a commercial property, including terminating the lease and handing control back to the Landlord. Commercial Leasing Lawyers will advise you on correct procedure and ensure that the lease is forfeited through peaceful entry of the premises, changing the locks and correct display of the notices of forfeiture. .
If you have a legal matter concerning a commercial lease, then please complete your enquiry form on the right, or click here, to be put in contact with a specialist commercial leasing lawyer.
If you need legal advice regarding Commercial Leasing Law, then please complete your free legal enquiry form on the right, and we will put you in touch with a Commercial Leasing Law lawyer nearest you, who can help you with Commercial Leasing Law.
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