A commercial lease refers to the lease of commercial property. It is a legally binding document between a business tenant and owner/ landlord for the rental of property. This includes but is not limited to:
- Office space;
- Industrial units;
- Workshops and warehouses; and
- Retail shops (whether they are within a shopping centre or not).
When negotiating a lease, the rights and obligations of both parties should be on the table for negotiation. Some of the key requirements in lease negotiations are:
- Terms of Lease – generally the tenure of the lease;
- Preliminary Documentation – it includes an agreement to lease, a lease incentive or contribution deed; and
- Dispute Resolution – it includes options such as informal negotiation, mediation or litigation.
In addition to rental costs, there are a number of costs to be borne by the tenant, including:
- Security bond;
- Council rate;
- Insurance cost;
- Legal cost (lease preparation in some cases and costs on default); and
- Repairs and maintenance.
Please contact us if you require assistance with a commercial lease.