Retail and Commercial Leases
You have decided to enter into a lease.
Whether it’s for an office, restaurant, industrial unit or retail shop you need a lease to protect your interests.
The terms of your retail or commercial lease will typically be a result of the negotiation between yourself and the property owner. It’s important you seek advice from an experienced lawyer.
Poorly worded agreements have the potential to affect the long-term viability of your business.
The first issue you must determine is the length of the lease. Agree on a term you believe is commercially suitable. When renting office space you may elect for a shorter term to allow for growth in the business. When renting a restaurant you may want a longer period to market a favourable location. You may also want to build in renew term options into the lease.
Next, determine your obligations for maintenance of the premises. Nearly all leases include a make good clause to ensure you leave the premises in the way you found it. It’s your responsibility to restore the premises if you make changes.
Your selected premises will have outgoings. Council rates, water rates, land tax and insurance must be taken into account. Your lawyer will read through the lease and determine which of these costs are your responsibility. Make sure you know what is included otherwise your leasing expenses may be more than you expect (or can afford).
It’s important for your lawyer to go through the lease terms and advise you. Your lawyer will negotiate amendments to the lease. Please ensure this happens before you rush in and sign the retail or commercial lease.
Sometimes disputes do arise between a landlord and the tenant. Often this is over issues not obvious at the time of signing the lease. If this is an issue for you, please obtain advice before taking any actions that may prejudice your rights under the lease.
Your lawyer can also assist in the resolution of any dispute that may arise so as to avoid any expensive litigation.
A retail or commercial lease is a key transaction for any business. Make sure it works for you not cause you undue stress that impacts the profitability or future of your business.