From lease negotiation to business prosperity.

Navigating the complexities of commercial and retail leases can be daunting, but with CM Lawyers by your side, you can focus on growing your business while we handle the legal intricacies. Our experienced team ensures your lease agreements protect your interests, giving you peace of mind and a solid foundation for success. Contact us today to learn how we can help secure your business's future.

What is a Commercial Lease?

A commercial lease is a legally binding contract between a business owner and the property owner. The documents involved with commercial and retail leases are more complex than residential leases, as the lease is often heavily customised to each property. Terms and conditions need to be reviewed carefully to ensure fairness for both parties.

A commercial lease provides the lessee with a right to exclusive possession and use of the property for business purposes. Several types of leases are available to businesses, depending on whether they are classified as retail or commercial. While the two classifications have many similarities, there are legal differences, such as different requirements for lease terms, length, and fee payments

Keep Up-to-date on the Legalities of Retail Leases

In New South Wales, the Retail Leases Act 1994 has undergone significant changes that impact the negotiation and drafting of leases for retail businesses. Retail leases differ from commercial leases and are governed under different laws. Whether you are the lessee or lessor of a retail property, it is important to seek advice from an experienced solicitor or conveyancer to ensure that your rights and obligations are adequately protected during the lease.

Things to Consider When You are the Landlord for a Commercial Lease

• Obtaining appropriate security on the lease. This may involve requesting a bank guarantee or cash deposit, usually equivalent to three months' rent.
• Determining who is responsible for the fit-out of the premises and who will own the fit-out at the end of the lease, as well as who is responsible for refurbishing the premises at lease end.
• Registering leases that exceed three years (including options to renew) with the NSW Land Titles Office. This requires consent from your mortgagee.
• General landlord duties in terms of maintenance and access to common areas, lobbies, lifts, toilets, and related areas. Understanding any applicable strata levies and building rules.

Key Criteria in Commercial Leases

• Rental payments: amount and payment schedule.
• Commencement date of rent period, considering the fit-out completion and relevant business approvals.
• Outgoings payable by either the landlord or tenant.
• Renewal options and how/when to exercise them.
• Maintenance responsibilities: landlord typically handles structural repairs, tenant handles day-to-day maintenance.
• Use permissible business types and activities on the premises.
• Assignment/Subletting: landlord's consent and approval process.
• Required insurances.
• Lease term.
• Obligations at the lease's end.

Special Considerations for Retail Leases

Retail leases are governed by specific rules separate from other commercial leases. Whether you are a retail landlord or tenant, it is crucial to seek advice from a legal expert to ensure your rights and obligations are protected.

Important changes to the Retail Leases Act affecting retail leases include:

• Expanded definition of 'retail' business, covering many businesses under the Act.
• Increased obligations for lessors and agents to provide information to lessees promptly during lease negotiation and the lease term.
• New section addressing misleading or deceptive conduct by either party.
• Independent retail valuers used for rent reviews when parties cannot agree on rent.
• More detailed disclosure statements from lessors regarding disturbances that could affect the lessee’s operations.
• New provisions for fit-outs and cost-sharing between lessor and lessee.
• Restrictions on advertising available retail space to new tenants unless the existing lessee has refused a renewal or extension offer.
• Replacement of the old security bond system with a bond payment to the Office of the Small Business Commissioner.

Why Choose CM Lawyers?

Whether you are a commercial or retail lessor or prospective lessee, the conveyancers at CM Lawyers can assist with matters related to retail and commercial leases. Seeking legal advice before entering a lease is essential to avoid potential negative impacts on your business's cash flow.

Our Sydney-based team can assist with:

• Drafting retail and commercial leases.
• Reviewing and advising on retail and commercial leases.
• Negotiating lease terms.
• Providing advice on lease disputes.
• Mediating lease disputes.
• Representing clients at NSW Civil and Administrative Tribunal hearings for lease disputes.