- Preparing commercial and retail leases
- Reviewing and negotiating lease terms
- Subletting of premises and assignments of leases
- Leasing disputes between landlords and tenants
What is Commercial Leasing?
Commercial leasing refers to the legal process of a landlord renting a commercial space to a tenant for the purpose of operating a business. The premises may be an office, retail shop, factory, or warehouse. The lease agreement governs the relationship between the parties regarding the tenant’s occupation of the premises and sets out their respective rights and responsibilities.
A leasing arrangement is a valuable commodity for both the landlord (whose investment in the commercial premises must be adequately protected) and the tenant (who relies on reasonable terms and security of location to operate a business).
Key components of a commercial lease include:
- The legal description of the premises with specific details of the size of the leased area, its permitted use, and shared facilities such as amenities and storage spaces.
- The rent payable by the tenant, including any rent reviews, method of review, and payment terms.
- The duration of the lease, including any options for renewal or termination.
- The obligations of both the landlord and the tenant regarding maintenance and repairs of the premises.
- The expenses (outgoings) that are payable by the tenant in addition to the rent, such as rates, taxes, and insurance.
Certain leasing arrangements are governed by specific laws. Retail leasing legislation applies to premises defined as ‘retail’ under the applicable retail leasing laws in the relevant jurisdiction. These laws provide additional protection to retail tenants and regulate the arrangements between the parties. The legislation also imposes specific disclosure obligations on the landlord who should ensure compliance with these regulations.
Minimising Leasing Disputes
Commercial and retail leases are legally binding documents, and it is important to review them carefully and, if necessary, negotiate any terms and conditions before signing. A solicitor can help you review your proposed lease, identify potential issues, and negotiate the terms to ensure that they are fair and reasonable.
A leasing dispute may arise because the lease agreement is ambiguous or does not contain provisions to deal with the many contingencies that can arise during the term of the lease. In other cases, the parties may not understand the extent of their rights and responsibilities under the lease.
Having an experienced lawyer draft, review and negotiate a lease agreement, and explain key terms and conditions can help put the parties on the same page from the start of their relationship and minimise costly disputes down the track.
For quality legal services and advice, contact [email protected] or call 02 88660188.