Retail & Commercial Leases

Dorrian Law can provide assistance with retail and commercial leases in a number of capacities.

Key things We Offer

  • Focus not only on initial stages of entering into a lease, but also ensuring that the terms and conditions of the lease will facilitate, to the greatest extent possible, a workable ongoing relationship between landlord and lessee
  • We understand that opportunities for securing commercial property as a lessee or a good lessee as a landlord need to be dealt with as soon as possible – accordingly, we strive to provide you with our advice as soon as reasonably practicable
  • The rules surrounding Retail Shop Leases can be complex and may have a critical impact upon your lease. We will ensure that you have the advice required to comply with your obligations whether as a landlord or lessee.
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Retail & Commercial Leases: Service Details

Dorrian Law can provide assistance with retail and commercial leases in a number of capacities. It is important to seek legal advice from an experienced commercial solicitor before entering a lease.

Dorrian Law can assist you with:

  • Drafting and reviewing retail and commercial leases
  • Negotiation for the terms of the lease (including rent, transfer options, duration, exit and renewal options)
  • Subletting of premises
  • Legal advice certificates
  • Possible dispute resolution processes

Contact us to find out more or to arrange an appointment.

Commercial lease

 

Sorting out a commercial lease or seeking tenancy services that is right for you does not have to be complicated.

You can avoid the hassle of trying to figure it out on your own by consulting us for legal advice.

We offer straight-talking advice and clear templates for Qld commercial leases if you are the landlord or the tenant of any property in Queensland.

Whether you are the landlord or the tenant (of any property in Queensland) you will benefit from our straight talking advice and clear templates regarding Qld commercial leases.

 

Top issues to consider in a Commercial Lease

 

In Queensland there is no such thing as a standard Commercial Lease or Standard Retail Shop Lease. They are drafted by the lawyers for the landlord.

You will have to consider the following:

  1. Term / tenure– As a tenant you want to have security of tenure without committing yourself for too long in case your needs change. As a landlord you want a stable long term tenant providing rent at appropriate yield levels. Multiple Options to renew coupled with rent reviews to market rent at the time of exercise of option seem to balance the commercial needs of both the tenant and the landlord. (In Queensland if the lease term (including options to renew) is over 3 years the tenant will want the Lease registered on the Title.)
  2. Security– Landlords will want personal guarantees and a bank guarantee of 3-6 months rent. Tenants will want to provide less security. A rule of thumb is this – if personal guarantees are provided (and they have some value) a 3 month bank guarantee is usually reasonable. Without personal guarantees normally a larger bank guarantee is reasonable.
  3. Letter of Offer / Intent / Agreement to Lease– Be careful they are often binding. Take advice before signing one.
  4. Gross Lease or Net Lease– A “Gross lease” rent usually includes “most” outgoings. A “Net Lease” rent usually does not include outgoings. What is your understanding and what is and is not included in rent? The definitions need to be carefully looked at.
  5. Insurance– What insurance does the landlord take out and what insurance does the tenant need to take out? Does the Lease “require” that a tenant’s insurer will agree to certain things. Often they will not. Most Insurance clauses need amendment.
  6. Assignment – Are the tenant and the guarantors “off the hook” if the lease is assigned? The tenant is in limited circumstances under the Retail Shop Leases Act but not the guarantors. Most Leases need amendment on this point.

 

If you’re a landlord for a commercial lease

 

We assist landlords (across Queensland). Landlord assistance includes:

  • Lease preparation
  • Disclosure compliance
  • Extensions and variations
  • Enforcement of landlord rights including Notices to Remedy Default
  • Compliance with other relevant legislation

 

Registered Leases

 

In Queensland, Leases of more than three years (or with options to renew) need to be registered on title in order to protect the term and the options.

 

Licenses

 

We also assist with car park, footpath dining and other licence agreements.

 

Retail Shop Leases

 

Our Brisbane lawyers assist tenants and landlords across Queensland with document review, amendment, preparation, advice, Notices of Default and dispute resolution.

Our solicitors will help you navigate compliance with the Retail Shop Leases Act 1994 (Qld).

 

If you’re a tenant in a retail shop lease

 

We assist tenants (across Queensland) with:

  • Retail Shop Leases Act – Legal Advice Report
  • Review and advice on lease terms
  • Negotiation of lease terms (often with significant cost savings)
  • Exercise of options to renew (which must be exercised strictly in accordance with their terms)
  • Extension or assignment of leases
  • Sub-leases
  • Surrender of Leases
  • Structuring security arrangements (security deposits, bank guarantees and personal guarantees) and your other affairs for asset protection

Commercial Lease & Retail Lease: What’s Different?

 

A lease is a contractual arrangement between a tenant (lessee) and a landowner (lessor). The purpose of this agreement is to set out the rights and obligations of both parties. Leases primarily state that the owner of the property will allow the use of that property by another entity for a specified time and payment. However, there are differences between types of leases depending on the purpose of your lease, especially between commercial and retail leases.

 

Commercial Lease

A commercial lease is an agreement for the leasing of commercial property with a specific business purpose. Typical examples include office areas, warehouses or industrial sites. Commercial leases have negotiable terms and vary from lease to lease. They also provide longer terms to ensure business engagement. Compared to other forms of leases, commercial leases offer less legal protection as the law assumes businesses and business people are more knowledgeable than consumers and lay people.

 

Retail Lease

A retail lease is a type of commercial lease used for retail shop businesses. Unlike explicit commercial leases, retail leases attract additional protection under State-based legislation. To determine whether a lease is a retail lease it is imperative to look to the law. Generally, a lease will be governed by the relevant State Act if the retail premises is in a shopping centre. This means that there must be 5 or more premises predominantly carrying on one or more listed businesses. Although, the Acts’ also provide exceptions as to what will be considered a retail lease. In NSW, the Retail Leasing Act 1994 will not apply to:

  • Shops that have a lettable area of 1,000 square metres or more;
  • Businesses managed by the lessee on behalf of the lessor;
  • Shops operated within a cinema, bowling alley or skating rink by the person who operates the cinema, bowling alley or skating rink;
  • Premises used only for an excluded use as defined by the Act, eg. vending machines, storage lockers, private post boxes, public telephone, public tables and seating, etc.
  • Leases with a term over 25 years.

Key Differences

Even though retail leases are a form of commercial leases, the main point of differentiation is the law that governs their operation. Entering into a retail lease imposes additional obligations on the landlord covered by the Retail Leasing Act 1994, or corresponding State Acts. Conversely, commercial leases are governed by State-specific property and conveyancing laws. This focus on consumer protection of retail leases also feeds into three other differences:

  • During the negotiation stage, a lessee of a retail lease must be supplied with a disclosure statement and a copy of the proposed lease. Failure to provide the lessee with such documentation will provide the lessee with a right to terminate the lease even after it has been agreed to. This does not usually occur in commercial leases until after negotiations have been finalised;
  • In a retail lease, lessees are also offered protection against unconscionable or deceptive conduct by the lessor; and
  • In a retail lease, as a lessor, you cannot pass the preparation costs to the lessee. Although, as a lessor in a commercial lease you may pass these preparation costs. Additionally, in commercial leases, tenants are usually responsible for the landlord’s legal costs. 

Frequently Asked Questions

A retail lease applies to businesses in shopping centers or those selling goods to the public and is protected by the Retail Shop Leases Act. Commercial leases typically apply to offices, warehouses, or industrial sites and have fewer statutory protections.
This is a document the landlord must give you at least 7 days before you sign a retail shop lease. It outlines key details like rent, outgoings, and tenancy mix so you can make an informed decision.

For retail leases, the landlord generally cannot ask you to pay their legal costs for preparing the lease. For commercial (non-retail) leases, it is common practice for the tenant to pay the landlord’s reasonable legal fees.

Outgoings are the operating expenses of the building, such as rates, insurance, and management fees, that you pay on top of your rent. We check the lease to ensure these costs are clearly defined and fair.
Yes, this is called an “assignment of lease,” but you usually need the landlord’s formal consent. You will also need to provide disclosure documents to the new tenant to protect yourself from future liability.

Absolutely, as a lease is a long-term financial commitment with strict obligations. Contact Dorrian Law to have your lease reviewed so you understand exactly what you are signing.

This clause requires you to return the premises to its original condition when the lease ends, which can include removing fit-outs. This can be expensive, so we advise on negotiating these terms before you sign.
Rent reviews can be based on the Consumer Price Index (CPI), a fixed percentage, or market rates. The method for increasing rent must be clearly stated in your lease agreement.
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