Commercial Law

Commercial & Retail Leases

Most of our clients require advice on retail leases, including office space, store fronts and shopping centre venues. A lease is a written agreement setting out a relationship between the landlord and tenant in respect of the occupation and use of the landlord’s property. Retail leases in Victoria must operate for a minimum of five (5) years; therefore, careful planning and research must be conducted. The primary obligation of the tenant is to pay the rent on time, and the law is far more stringent and complex in comparison to residential tenancies. Before entering into a lease, think carefully about the amount of time and money required to make the business succeed. Signing a lease could be the biggest financial commitment of your life. Never sign a lease without obtaining legal and financial advice from a professional first.

We recommend the following good business practice:

• Obtaining legal advice at the earliest opportunity and well prior to signing any lease or heads of agreement;
• Pre occupancy searches against the landlord and property including PPSR, building reports, pest inspection and local government searches in regards to permits, zoning and council requirements;
• Liaising with a financial adviser in regards to your ability to service the lease over the entire term; and
• Understanding the legal obligations as both the landlord and tenant.

The term “commercial lease” is used to describe a lease of commercial property which does not fall under the legislative framework of the Retail Leases Act 2003 (Vic). This usually includes factory space, vacant land, farming land etc.