We Can Assist with Commercial Leases
A Commercial Lease is also known as a Commercial Tenancy Agreement. It is a legally binding contract between the business owner (tenant or lessee) and property owner (landlord or lessor).
At A.L.F. Lawyers, our experienced commercial lease lawyers in Brisbane understand the significance of an enforceable lease, which can be crucial in protecting your interests and avoiding costly disputes.
We draft leases that cater to both landlords and tenants, ensuring they are designed to safeguard our clients’ best interests. Our team prioritises efficiency and works closely with you, your real estate agent, and the opposing party’s solicitors to finalise agreements promptly and effectively.
With our up-to-date knowledge of the Retail Shop Leasing Act, we ensure your lease complies with all relevant statutory laws, helping you avoid potential pitfalls. A well-drafted lease is essential to preserving your business’s value and goodwill, and we are committed to delivering leases that add value to your business.
Don’t risk the future of your business with a poorly drafted lease. Let us demonstrate how our legal expertise can protect and enhance your business.
The article below gives you some principles to consider when entering into a Lease either as the Landlord or the Tenant.
What is a Commercial Lease or Commercial Tenancy Agreement?
A lease, or commercial tenancy agreement, is a legally binding contract that grants a third party (tenant or lessee) exclusive possession of a property or part of it for a specified term in exchange for an agreed fee. The property owner is referred to as the landlord or lessor. The leased premises can range from vacant land to an entire building or just a portion of it.
Essentials in a Commercial Lease or Tenant Lease Agreement
Below are some of the basic aspects of a Commercial Lease agreement for Queensland commercial property which the landlord and tenant should consider:
Term of the Lease
The start date and duration of the lease must be clearly specified.
Goods & Services Tax (G.S.T.)
The lease should indicate whether he tenant must pay GST in addition to rent.
Personal Guarantees
When the tenant is a company, the landlord typically requires personal guarantees.
Personal Guarantees
Signage usually requires the landlord’s consent, and this should be agreed upon before signing the lease.
Outgoings – operating expenses
The lease must detail how outgoings are handled, either as part of the rent or as an additional charge, with annual adjustments as needed.
Rent
The rent for the first year should be stated, along with how rent increases will be calculated (e.g., fixed percentage or CPI), including rent for any renewal periods.
Refurbishment by Tenant
The lease may require the tenant to refurbish the premises after a certain period or upon lease termination at the tenant’s expense.
Property address
The property address must be accurately described to avoid legal issues, especially if the lease will be registered or involves a lender.
Security
The lease will state if a bank guarantee or cash bond is required, along with any additional
Relocation
Some leases include a clause allowing the landlord to relocate the tenant within the same complex.
Utilities – Services
The lease will specify whether the tenant is responsible for utility costs.
Insurance
The required insurance coverage for the tenant should be outlined in the lease.
Default by Tenant
If the tenant defaults on major terms, the landlord can reclaim the premises and seek damages. Minor defaults allow the landlord to recover damages.
Car parking
Parking arrangements for staff and customers should be clearly defined in the lease to reflect the agreed terms.
Options
Any options to renew the lease must be specified, with clear terms on how and when the tenant can exercise the option. Provisions for market rent reviews and dispute resolution should also be detailed.
Meet one of our Commercial Property Lawyers with vast experience in Commercial Law, Property Development and Land Sub-Division.
Finding the Right Tenant
When handling commercial tenancy matters, many overlook the importance of ensuring that the tenant is a suitable fit for the premises and financially capable of meeting their obligations, such as rent, outgoings, and other costs throughout the lease term.
While letting agents may assist in introducing prospective tenants and handling initial negotiations, they may not assess the tenant’s financial viability.
At A.L.F. Lawyers, we believe securing the right tenant is crucial—it’s not just about filling the space but finding a tenant who can uphold their commitments.
Entering into a Lease Process
- You provide us with a signed letter of offer.
- We prepare the draft lease for your review and approval.
- The lease is sent to the tenant or their legal advisor for approval or amendments. If the lease falls under retail shop lease legislation, we also provide the necessary disclosure statement.
- Once all terms are agreed upon, the tenant and then the landlord sign the lease, making it legally binding.
- For leases longer than three years, we arrange registration with the Titles Office.
Entering into a Lease as the Landlord
At A.L.F. Lawyers, we help protect your assets and rental income streams. Our experienced team can assist with preparing new leases, negotiating terms, lease assignments, breach resolutions, lease extensions, amendments, surrenders, and recovering unpaid rent.
- We issue a Lease to potential tenants within 48 hours of receiving your complete instructions.
- Our leases are refined from years of experience as both lawyers and property owners.
- We provide a checklist for new tenants outlining their key responsibilities under the Lease.
- The standardisation of our Lease documents ensures lower legal costs if legal issues arise in the future.
Entering into a Lease as the Tenant
Having a Commercial Lawyer review your lease before you sign can help you understand and negotiate terms that protect your business. Take advantage of our free 15-minute consultation with one of our commercial lawyers
As part of our appointment:
- We will conduct a detailed review of your proposed lease.
- We will identify any hidden costs upfront.
- We will explain lease conditions that may affect your day-to-day business.
- We will be available during negotiations to address any concerns.
- We will ensure the lease terms reflect the agreed-upon conditions between all parties.
Legal Fees and Additional Charges
A landlord can appeal to charge the tenant for lease registration costs, mortgagee consent fees, and any survey plans attached to the lease, in addition to any other obligations regarding rent and outgoings.
In some business leases, it is typical for the landlord to demand payment from the tenant for the costs of creating and drafting the lease. However, the tenant has the right to negotiate it.
Categories of Lease
The rules and regulations applied to the lease are based on the type of business carried out there, where the property is located and how long the lease is. You can run the risk of violating your lease or losing significant privileges if you aren’t aware of them.
Short Term Lease
A short-term lease is typically between 12 months to 36 months and can not be renewed for an additional period. It gives you flexibility, but there is a chance you will not be able to recover your investment or extend the lease.
Long-Term Lease
Long-term leases are more stable as compared to short-term leases but they also bind a company to pay rent if it cannot operate. Long-term leases exceeding three years need to be registered with the Titles Registry to help guarantee that your legal rights as a long-term tenant are documented and safeguarded.
Retail Shop Lease
In comparison to standard commercial leases, the Retail Shop Leases Act of 1994 gives tenants greater protection by establishing the minimal requirements for retail store leases in Queensland. The laws related to retail shops for lease in Brisbane are probably going to apply to your lease if you own a property in a retail shopping complex (with five or more retail shops).
Benefit to Landlords
- Where necessary, we will expedite a Lease to a potential tenant within 48 hours after receiving your full instructions;
- Our leases have evolved over many years of experience;
- We provide a checklist for your new tenant outlining their key responsibilities under the Lease; and
Because of the standardisation of our Lease documents, you will incur lower legal costs where our services are - required to resolve problems or disputes in the future.
Benefit to Tenants
- We will undertake a detailed review of your proposed Lease;
- We will identify any hidden costs up front;
- We take the time to explain conditions of your Lease that may impact your day to day business;
- We make ourselves available during the negotiation so you can contact us; and
- We will ensure that the terms of your Lease reflect terms agreed between the parties.
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Our Promise To You
We understand that getting a deal over the line in today’s world of business requires collaboration, professionalism and it needs to happen quickly.
Where necessary, we will make every effort to have a lease prepared and issued for review within 48 hours of receipt once all of the information required is received from you.
Our Commercial Lease Solicitors in Brisbane Can Assist in the Following Areas
- Preparation and or Review of a Commercial Lease
- Advice regarding the various structures for your business and the most appropriate structure for your venture;
- Preparation and administration of trust deeds;
- Establishment and structuring of companies, including share allocations and company constitution;
- Pre-Contract Advice;
- Preparation of contracts and special conditions;
- Contract review;
- Negotiation of terms;
- Due Diligence;
- Property settlements;
- Review and Preparation of Leases, assignment of Leases or deed of covenants;
- Advice and preparation of Franchise Agreements;
- Advice and preparation of Partnership Agreements, Joint Venture Agreements and Shareholders or Share Sale Agreements; and
- Other general commercial advice.
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Meet The Commercial Lease Principle Lawyer
Chantal Bush, the Principle Lawyer and Executive Director
Chantal is an Executive Director of the Commercial Law Team at ALF Lawyers. She has been in the industry for almost a decade now and brings excellent records from her side to the table.
At A.L.F. Lawyers firm, Chantal Bush goal is to build lasting partnerships with clients, founded on trust and respect. She is dedicated to delivering exceptional value, supporting your business’s long-term success and growth. Let her guide you through the legal complexities and secure your business’s future.
Contact Chantal to find out how she can assist you and schedule a consultation.
