Commercial Lease Lawyers

Entering into a commercial lease is a significant commitment for any business. From rent and outgoings to personal guarantees, renewal rights and make-good obligations, the terms of your lease can affect your business for years.

At Rise Legal, our commercial lease lawyers assist tenants and landlords with reviewing, preparing and negotiating commercial, retail and industrial leases. We provide practical legal advice with fixed fees agreed upfront.

With offices on the Gold Coast, in Perth and Sydney, we assist businesses across Australia.

Commercial Lease Lawyers for Tenants

Before signing a commercial lease, it’s important to understand your financial obligations, the restrictions on using the premises and what happens when the lease ends.

Our commercial lease services for tenants include:

• Reviewing offers to lease and heads of agreement before signing.
• Reviewing commercial, retail and industrial lease agreements.
• Explaining lease terms, obligations and potential risks in plain English.
• Reviewing and negotiating rent reviews, outgoings and lease incentives.
• Advising on fit-out, maintenance and make-good obligations.
• Reviewing bank guarantees, security deposits and personal guarantees.
• Advising on options to renew and important notice requirements.
• Reviewing lease assignments and transfers when buying or selling a business.
• Preparing or reviewing agreed lease variations and surrender documents.

Commercial Lease Lawyers for Landlords

Well-prepared commercial lease documents help landlords clearly establish the rights and obligations of each party.

Rise Legal can assist landlords with:

• Preparing and reviewing commercial and retail lease agreements.
• Preparing relevant retail lease disclosure documents.
• Reviewing proposed lease terms, security arrangements and guarantees.
• Preparing lease variations, extensions and renewals.
• Reviewing requests for lease assignments and subletting.
• Preparing documentation for agreed lease surrender or termination arrangements.

Retail Shop Leases in Queensland, NSW and Western Australia

Retail shop leases may be subject to additional legal requirements depending on the location, type of premises and nature of the business.

Relevant legislation includes:

• Queensland: Retail Shop Leases Act 1994 (Qld).
• New South Wales: Retail Leases Act 1994 (NSW).
• Western Australia: Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA).

These laws regulate aspects of qualifying retail leases, including disclosure requirements, certain lease costs, rent reviews and other obligations. Not every commercial or industrial lease falls within retail leasing legislation.

Our lawyers can help identify the applicable requirements and explain how they may affect your proposed lease.

Important Commercial Lease Terms to Review Before Signing

A commercial lease can contain significant financial obligations and restrictions. Before committing, it’s worth understanding the following provisions:

• Lease term and renewal options: How long the lease runs, when it expires and how renewal rights must be exercised.
• Rent and rent reviews: The initial rent and how increases are calculated throughout the lease.
• Outgoings: Additional costs you may be required to pay, including certain maintenance, insurance and property-related expenses.
• Permitted use: Restrictions on the activities you can conduct from the premises.
• Fit-out and make-good obligations: Responsibility for alterations, repairs and restoring the premises when the lease ends.
• Personal guarantees: Circumstances in which directors or other individuals may become personally liable for lease obligations.
• Assignment and subletting: Requirements for transferring the lease or subletting the premises.
• Relocation and demolition: Rights that may allow the landlord to relocate the tenant or terminate the lease in specified circumstances.

A legal review before signing can help you identify obligations that may otherwise result in unexpected costs or restrictions.

Commercial Lease Renewal Options

Many commercial leases include an option allowing the tenant to renew the lease for a further term.

However, an option usually needs to be exercised within a specified period and in accordance with the lease requirements. Missing the deadline or failing to follow the correct procedure can result in losing the contractual right to renew.

Rise Legal can review your lease, explain the relevant renewal provisions and assist with the legal documentation involved in exercising an option or negotiating a renewal.

Frequently Asked Questions About Commercial Leases

Should I get legal advice before signing an offer to lease?

Yes, obtaining legal advice before signing is recommended. An offer to lease or heads of agreement may create binding obligations, depending on its wording and the circumstances.

Having the terms reviewed early can help identify potential issues before you enter into a formal lease.

Can I terminate a commercial lease early?

Early termination depends on the lease terms, applicable law and the circumstances.

Options may include negotiating an agreed surrender, assigning the lease or relying on an express termination right where available.

Rise Legal can review your contractual obligations and assist with documenting an agreed commercial arrangement.

Who pays the legal costs of preparing a commercial lease?

This depends on the type of lease, its terms and applicable state or territory legislation.

For qualifying retail leases, legislation in Queensland, NSW and Western Australia restricts certain lease preparation costs that landlords can recover from tenants.

Other costs, including expenses associated with an assignment or requested variation, may be treated differently.

What happens to a commercial lease when selling a business?

If you’re selling a business that operates from leased premises, you may need to assign the lease to the buyer or arrange a new lease with the landlord.

Landlord consent, continuing guarantees and other lease obligations should be addressed before settlement.

Learn more about our Business Sale and Purchase Legal Services.

Does Rise Legal offer fixed-fee commercial lease reviews?

Yes. Rise Legal offers fixed-fee commercial lease review services, with the scope of work and cost agreed upfront.

We can review the proposed lease, explain important obligations and identify contractual issues that may need to be addressed before signing.

Speak with Our Commercial Lease Lawyers

Need help with a commercial lease? Rise Legal assists Australian businesses with lease reviews, preparation, negotiations and related commercial legal documentation.

Call 1300 064 707 or contact Rise Legal to book a free initial discovery call.

For more information, read our guides to Navigating Commercial Leases and Negotiating the Terms of a Commercial Lease.

Disclaimer: The information provided on this page is general in nature and is intended for informational purposes only. It does not constitute legal advice and should not be relied upon as a substitute for advice tailored to your specific circumstances. We recommend seeking independent legal advice before making any decisions based on this information.