5 things you
need to know
about
Reviewing a Commercial Lease
- A lease is an important commercial contract, often binding a tenant for many years. It is important for a tenant to obtain quality legal advice before entry into a lease to ensure that the lease does not contain onerous clauses.
- When reviewing a lease, it is important to consider the rental amount, whether any rent free period or other lease incentive is documented, the term of the lease, whether there is an option period to extend the lease, what the premises can be used for, whether premises can be sub-leased, how rent will increase and any make good requirements on termination.
- The majority of landlords require security in the form of a bank guarantee and, where a limited liability company is the tenant, a personal guarantee. Personal guarantees can be risky and this is best avoided.
- The legal requirements around retail leasing vary from state to state, so it is important that you work with a lawyer who has experience nationally.
- Take the time to obtain quality legal advice and ensure you understand all the rights and obligations contained in the lease before you enter into any lease.
