Commercial Leasing

Is my lease fair?

It is hard to establish value if you are not constantly exposed to leasing and have a working knowledge of what is fair or not. Our commercial lease lawyers have extensive experience and understand the commercial aspect to leases and licences as well as extensive legal knowledge of the relevant legislation.

We can assist with lease negotiation and drafting of terms and conditions to suit your business and protect you. We will advise of what the terms and conditions in the lease are explain how they will affect your business.

It is important to get legal advice about your options if you believe your lease is unfair.

How can I terminate my commercial or retail lease?

There are several ways that you can break or terminate a commercial lease.

You should speak to a commercial leasing agent and get a feel for the commercial leasing market, being informed on the current leasing market will give an idea on how you may approach your discussions with your current landlord and your leasing agent.

Mutual Consent

One way is by mutual consent, you can approach your landlord and request to surrender your lease and if they are agreeable you may have a deed drawn up that will terminate the lease. You should obtain advice on a surrender of lease as this often can leave you with ongoing liabilities and may not be a full release of your obligations.

Early termination clause

There maybe an early termination clause in your lease and if so, you may be able to utilise the conditions of it to exit the lease.

Assignment of Lease

You may be able to assign the lease to another party, this is effectively transferring your current lease to a new party. You may still have liability under the lease if you choose to assign it to another party and you should seek legal advice to ensure you are aware of any ongoing obligations.

Subletting the Premises

A sublet is usually for part of the premises, however you may be able to assist in bringing in further income to pay the head lease. You should ensure that proper legal documentation is in place for a sublet so that you are covered if any issues arise in the future. A sub-lease may need the approval of the Head Lessor as well.

Appoint an Administrator

If you are insolvent or need to restructure you may be able to appoint an administrator who has the ability to renegotiate leases and other agreements.

Some tenants abandon their premises hoping that the landlord will not pursue them for the default. This is one strategy, but a risky one. Being vigilant and working through the issues can avoid a great deal of stress.

What is the difference between a Retail and a Commercial Lease?

A retail lease is usually granted to a premises where the permitted use of the premises is predominantly for the sale and supply of goods by retail or the retail provision of services.

Unlike their commercial counterpart, retail leases are structured and are regulated (in Victoria) by the Retail Leases Act (Vic) 2003 (“the Act”).

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