Navigate the nuances of leasing commercial, retail or office space with our leasing services. Whether you are the landlord or tenant, we will help you close a great lease in the shortest time possible.
We cover all stages of commercial and retail shop leasing, including
Legal due diligence searches
Drafting, reviewing and negotiating lease documentation
Land titles office registration
A commercial lease involves the leasing of office space, industrial property or other commercial property that is not considered to be a retail shop. Commercial leases are completely unregulated, so there are no legal protections for tenants, unless they are specifically negotiated into the lease.
A retail shop lease relates to the leasing of a retail shop. Retail shop leases are regulated by the Retail Leases Act 1994 (NSW) in New South Wales and equivalent legislation in other states. As a general rule, a premises will be considered to be a retail shop where:
- it is one of the retail shop businesses listed in the Retail Leases Act 1994 (NSW), Schedule 1; or
- it is within a cluster of five or more premises containing retail shop businesses.
‘Ratchet clauses’ that seek to prevent the base rent from ever decreasing on a market rent review are void when included in retail shop leases. These ratchet clauses are common in commercial leases because there is no prohibition against them being included in commercial leases.
The Retail Leases Act 1994 (NSW) also provides protections for tenants where the landlord wishes to relocate the tenant to different premises or demolish the retail shopping centre, or if the retail shop is damaged. These protections are not automatically included in commercial leases, and need to be negotiated before the lease is signed.
Landlords are also required to deposit any security deposit with NSW’s Retail Bond Scheme within 20 business days of receiving it.
There is no cooling-off period when signing either a commercial lease or retail shop lease.