Commercial Leases are essentially a contract between the owner of the premises (the landlord) and the business who wishes to rent the premises (the tenant).
In Queensland there are 2 types of Commercial leases:
- Retail lease; and
- Non-retail lease
Retail leases are leases which involve the sale of goods to a consumer (eg.dentist, grocery stores etc).
Non-retail leases are leases which involve distributors or manufacturers which do not sell directly to the consumer.
When entering into a Commercial lease it is important to consider such things as:
- Rent Clauses and review terms
- Options to renew
- Repair and maintenance obligations
- Disclosure statements
It is important that the terms of the lease are properly understood before they are agreed upon. The consequences of entering a lease which is adverse to yourself can be financially and legally problematic.
Receiving legal advice from a solicitor prior to executing a lease is generally a very sensible measure to take, in order to ensure that the terms are suitable, or whether you need to negotiate alternative conditions.