Leases Retail Shop & Commercial
Five things you need to know about reviewing a commercial lease
- A lease is an important commercial contract, often binding the parties for many years. It is important that you obtain quality legal advice before you enter into a lease to ensure that the lease does not contain unreasonable terms and conditions.
- In reviewing a lease, it is important to consider the rental amount, that any rent free period or other lease incentive is documented, (the terms/length/period of the lease), whether there are option periods to extend the lease, what the premises can be used for, whether the premises can be sub-leased, how rent will increase and any requirements on termination.
- Security for the lease in the form of a bank guarantee and, where a limited liability company is the tenant, a personal guarantee will often be required. If personal guarantees are signed then the obligations set out in the lease should be carefully considered by both parties.
- The legal requirements around retail leasing vary from state to state, so it’s important that you work with a lawyer who has experience in this field.
- Take the time to obtain quality legal advice and ensure you understand all the rights and obligations contained in the lease before you enter into any lease.
Are you about to start off your new business and need a lease or, are you in business and need a renewal?
As a tenant, you need to make sure that the terms of a lease are not only fair but that you understand your obligations under the Lease. We can guide you through the process and ensure that you are aware of all the pitfalls and benefits of a lease. Remember, the lease usually runs for a significant period of time – you don’t want to make a mistake at the very beginning as you will pay for it for a long time.
As a landlord, you will have similar issues but your main concern is the protection of your investment. You will want to make sure that your property is protected and that you get the right advice.
Commercial leases and retail shop leases significantly differ so make sure you understand your rights and obligations – don’t go giving something away unless you really have to.