Commercial and Retail leases are complex documents that must balance the rights of the landlord and tenant and provide for numerous eventualities during the term of the lease – such as if the premises are damaged or if the tenant defaults on the lease.

Generally, the landlord provides the tenant with the lease, which contains terms relating to the rent, the term of the lease, permitted use of the premises, any bank guarantee or security deposit, maintenance requirements and make good and termination provisions.

At LegalVision, we draft a broad range of lease documents including commercial leases, retail leases, licences, assignments of lease, variations of lease and subleases.

In relation to retail leasing, we also advise on the preparation of disclosure statements and the landlord’s obligations under State Specific Retail Legislation

LegalVision’s experienced commercial leasing lawyers have extensive knowledge of commercial, retail, industrial and rural leasing. We can draft and negotiate leases in all Australian jurisdictions, as well as:

  • draft ancillary transactions including licence agreements, assignments, solar and technology leasing and lease surrender;
  • assist tenants manage their leasing portfolio; and
  • manage all commercial and retail leasing needs for a range of corporate organisation and government bodies.

Our team is pragmatic and efficient and deliver quality advice to SMEs, franchisors, shopping centres and large corporates.

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5 Things You Need to Know About Drafting a Commercial Lease

  • 1It is important to determine what type of lease should be drafted — for example, commercial, retail, industrial, licence agreement etc. All documents have different drafting considerations and different implications. Get expert advice before preparing documentation.
  • 2All leases contain commercial terms, such as the rent payable, the term of the lease, whether an option period will be granted, and what type of security the lessee will be required to provide, such as a bank guarantee.
  • 3A landlord has specific disclosure requirements for retail leases, noting that in all States across Australia (except South Australia) a Landlord must provide tenants with a disclosure document at least 7 days before the lease commencement date. Failure to disclose certain information can provide the tenant with a right of termination, even after the lease has been entered into.
  • 4Leases should contain detailed provisions as to maintenance obligations during the term of the Lease, such as details of the party responsible for maintenance of items like air conditioning.
  • 5The majority of leases also contain “make good” requirements, compelling tenants to make good any damage and return the property to its condition at the start of the lease, excepting fair wear and tear. Additionally, some leases contain redecoration clauses, requiring tenants to re-paint premises and/ or re-carpet premises.

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