Parramatta Commercial Lawyers & Retail Leases
If you need to lease commercial or retail premises to run your business, or if you have invested in a commercial property, it is important to have your lease negotiations set out in a formal lease agreement. Many leasing disputes arise because the parties have not included sufficient terms in their lease, or because they do not completely understand their rights and responsibilities under the agreement. Our commercial lawyers in Parramatta can help with all your commercial and retail leasing needs, including:
- Drafting and reviewing retail and commercial leases
- Negotiating lease terms
- Subletting of premises
- Transfer and assignment of leases
- Advice on warranties and guarantees associated with leases
- Commercial and retail leasing disputes
The terms of your lease agreement should be comprehensive, clear, and balance the interests of the tenant and landlord. They should also cover certain unforeseen events, for example, what happens if the premises is damaged or destroyed. Typical lease terms include, but are not limited to:
- The parties and property.Parties entering a lease need to know who they are dealing with. Title and company searches may be obtained to confirm that the parties are accurately described in the lease and legally entitled to enter the transaction.
- The leased area. The lease should include a legal and physical description of the premises with a plan showing dimensions. Use of car spaces, storage facilities and amenities should also be noted.
- Permitted use. The lease should state the permitted use of the premises. The tenant should also ensure that the proposed use of the premises complies with any council or other requirements and any necessary licences are obtained.
- The term of the lease. The term of the lease and any renewal options should coincide with a tenant’s business plans and a landlord’s plans and investment strategy for the property.
- Options. Leases containing options to renew will specify a time period within which a tenant can exercise (give notice) to renew the lease. Option periods should be diarised to avoid missing out on the opportunity to renew.
- Outgoings. The lease should state who is responsible for the property’s outgoings and list the relevant items. Outgoings include costs for things like utility services, rates and taxes, cleaning, gardening, and security. An estimate of these costs should be obtained by the tenant before entering the lease.
- Rent and rent reviews. The lease will contain details of the rent, the frequency and method of payment and when and how a rent review may take place. Rent reviews may be by reference to the Consumer Price Index, market review or a set percentage on each anniversary of the lease.
- Fitout and refurbishment – negotiations regarding fitting out of the premises must be clearly stated and include the types of fixtures and fittings to be installed, who is responsible for the work, approval requirements, and any obligation to restore the premises at the end of the lease.
What is a retail lease?
Certain retail premises in New South Wales are governed by the Retail Leases Act 1994 (NSW). Retail leasing legislation was introduced to provide greater protection for retail tenants and sets out a process for the resolution of disputes. Amongst other things, the legislation requires landlords to provide certain disclosure information to potential tenants during the leasing process.
Retail premises typically include those used as a shop (selling, hiring, or providing goods and services to the public) and/or premises situated in a retail shopping centre. There are some exceptions, so it is important to determine the status of the premises before entering into your lease negotiations.
Our commercial solicitors can provide practical tailored leasing advice and solutions for a range of retail and commercial leasing arrangements.
If you need assistance, contact one of our Parramatta commercial lawyers at [email protected] or call (02) 9687 7933 for expert legal advice.