A long-term commercial commitment
A lease sets the legal and financial framework for the use of business premises. For a tenant, it can determine where and how the business operates. For a landlord, it supports the income, management and value of the property.
Pezikian Legal assists landlords and tenants to turn the commercial deal into clear lease terms and to identify obligations that may have a significant effect over the term.
Retail or commercial lease
Retail and commercial leases are not regulated in the same way. The Retail Leases Act 1994 (NSW) applies to qualifying retail shop leases and imposes requirements that cannot simply be displaced by the lease.
Whether the Act applies can affect disclosure, costs, rent review, outgoings, registration and dispute resolution. The proposed use, type and location of the premises, floor area, lease term and business should be reviewed before the lease is finalised.
Before signing
Heads of agreement are often treated as preliminary, but signing or taking possession can still create risk. The premises, permitted use, approvals, works, incentive, commencement conditions and security should be settled with care.
Independent advice can help the parties understand the full occupancy cost and the responsibility for fit-out, repairs, compliance and reinstatement.
- Term, options and commencement date
- Base rent, reviews, GST and outgoings
- Permitted use, exclusivity and approvals
- Fit-out, incentives and landlord works
- Repairs, maintenance and services
- Insurance, indemnity and liability
- Bond, bank guarantee and personal guarantees
- Assignment, sublease and change of control
- Damage, relocation, demolition and access
- Make-good and end-of-term obligations
During the lease
Lease work continues after execution. A landlord or tenant may need assistance with an assignment, sublease, variation, renewal, option, rent review, consent, default notice or surrender.
A timely review is important where an option deadline, breach notice or proposed assignment is involved. Informal arrangements should be documented so the lease record remains clear.
Lease disputes
Disputes may concern rent or outgoings, repairs, access, permitted use, fit-out, damage, make-good, assignment, default or termination. The lease, correspondence, payment record and condition evidence should be reviewed before a formal position is taken.
The NSW Small Business Commission offers mediation for retail and commercial leasing disputes. Depending on the matter, NCAT or a court may have jurisdiction.
How Pezikian Legal can assist
- Drafting and reviewing heads of agreement and leases
- Negotiating lease terms for landlords and tenants
- Preparing disclosure and ancillary documents
- Assignments, subleases, variations, renewals and surrenders
- Options, rent reviews and make-good advice
- Default notices, negotiation, mediation and proceedings