The complexity of a commercial lease far surpasses that of a residential agreement. The financial commitments are higher, the terms are longer, and the implications for your business operation are profound. A well-structured commercial lease provides clarity, protection, and certainty for both landlord and tenant.
Overlooking key clauses or relying on generic templates can expose a business to serious financial and legal consequences.
Key Areas That Require Careful Review:
Demise and Permitted Use
The lease must clearly define what is included in the premises, such as car parks or storage areas. The permitted use should be flexible enough to allow business growth while remaining compliant with zoning and landlord requirements.
Rent and Outgoings
A strong lease clearly outlines base rent, rent review mechanisms (CPI, fixed or market), and which outgoings the tenant is responsible for. Understanding the full cost over the lease term is essential.
Maintenance and Repairs
Responsibility for repairs must be clearly allocated. Tenants typically manage internal, non-structural maintenance, while landlords retain responsibility for structural and major capital items.
Assignment, Subletting and Options
The lease should clearly state the process for assigning or subletting and the conditions attached. Options to renew must also be clearly defined, as missed deadlines can result in loss of tenure.
Termination and Default
This section sets out breach conditions, notice periods, and termination rights, providing clarity on how disputes and defaults are managed.
Commercial leases should never be treated as standard documents. Every clause carries financial and operational risk.
For expert support with commercial leasing, renewals, or negotiations, My Agent Aus offers strategic advice and end-to-end leasing services. Contact our team to discuss how we can support your next leasing opportunity with confidence and clarity.