Navigating Retail Leases

What do you need to know about Retail Leases?

Navigating retail leases in Australia requires understanding specific legal provisions, seeking expert advice, and focusing on key aspects like disclosure statements, rent review, and dispute resolution. It's crucial for both landlords and tenants to be informed about their rights and obligations under the Retail Leases Act relevant  to your state.  Note that all states have different Retail Lease Acts and it is imperative that they are followed accordingly.

Key considerations for Retail Leases are listed below:

• Disclosure Statements:

Landlords must provide prospective tenants with a detailed disclosure statement outlining key terms and conditions, including rent, outgoings, and any additional costs.  This must be given to the tenant at least 7 days prior to the lease being signed (check relevant state for specific details).  Landlords are obligated to complete these correctly, so it is imperative that the numbers and information provided are checked thoroughly prior to signing, as it runs concurrent with the lease once fully executed.

• Retail Leases Act:

Each Australian state has its own Retail Leases Act.  This act governs retail leases and provides tenants with specific protections and rights, such as a cooling-off period and the right to compensation for disturbance. The Act prevails over the executed lease document should there be any conflict through the term of your tenancy.

• Seeking Legal Advice:

It's highly recommended to seek professional legal advice from a qualified solicitor specialising in retail and commercial leases before entering into a retail lease agreement. 

• Outgoings:

Understand the definition and allocation of outgoings, including costs associated with utilities, property taxes, and maintenance. 

• Rent Review:

Be aware of the mechanisms proposed for the rent review outlined in the lease and understand how it may be influenced by the current market conditions, retail industry and the Retail Leases Act. 

• Dispute Resolution:

Familiarise yourself with the dispute resolution mechanisms outlined in the lease.  The Small Business Commissioner relevant to your state may assist with lessee’s enquiries. 

• Registration:

In some states, leases must be registered by the landlord with the relevant registry service to your state. 

• Fit-outs and Cost-Sharing:

Understand the provisions related to fit-outs and cost-sharing between the lessor and lessee. 

These are just some of the key aspects to be aware of. By seeking professional advice, both landlords and tenants can navigate the intricacies of retail leases more effectively. 

LEASE NEGOTIATION SERVICES are here to assist you in providing expert knowledge of these complex documents with over 35 years experience.  Our trusted staff will advise you through the process at each step, enabling you to focus on running your business.  (Note, we are not lawyers and cannot provide legal advice.)

CALL US today on 0401 996646.  We look forward to meeting you and ascertain how we can help you achieve the best commercial outcome in your lease negotiations.