Commercial Leases constitute a contract between a landlord who owns premises and a business which wishes to conduct its operations from the premises.
In Queensland, there are two main categories of commercial leases:
- Retail shop leases; and
- Commercial leases other than retail shop leases.
Retail shop leases are leases of premises which are located in a shopping centre or used wholly or predominantly to carry on a specific retail business. There are several tests which can be used to determine whether a business or premises requires a retail shop lease, so it is always important to speak with a solicitor who will be able to apply these tests to your situation. Retail shop leases are governed by the provisions of the Retail Shop Leases Act, which mandates certain disclosures to be made before the lease is signed.
Commercial leases other than retaining shop leases are a broad category which could cover premises leased for distribution, manufacturing or the provision of services. They are usually located outside of shopping centres. Due to the variety of applications, they may need to provide clarity around a range of issues ranging from the storage of industrial materials to complex insurance matters, so it is important that a solicitor is able to draft a lease which is tailored to your specific needs. Commercial leases also cover important issues such as rent review, options to renew and obligations to pay for maintenance and outgoings.
Accordingly, and noting that the breach of a lease can entail severe financial consequences, it is vital that prospective lessors and lessees have a clear understanding as to the terms of a lease before execution and that the disclosure statement has been reviewed in full by a solicitor.
At Forge Legal, we offer advice on all types of commercial leases, and for your peace of mind, and we can even conduct negotiations around terms on your behalf.