There are many aspects often overlooked when considering business premises for lease and we can provide our expert guidance to enable you to make an informed decision about whether the premises will be suitable for your intended purpose and the lease contains the necessary provisions to enable you to operate your business effectively.
If you are considering leasing business premises on the Gold Coast or in Queensland, we can advise you on your rights and obligations, particularly in respect of:
- term of lease and option periods;
- rights of first refusal;
- rent and rent review provisions;
- trading hours;
- disclosure requirements under the Retail Shop Leases Act;
- demolition and or relocation clauses;
- permitted uses of the property;
- rights to alter premises;
- make good and reinstatement obligations on lease end;
- your insurance obligations;
- other financial covenants; and
- landlord’s rights and obligations.
What is a Retail Shop Lease?
A Retail Shop Lease is a lease to which the Retail Shop Leases Act 1994 (Qld) (“Act”) applies, which is typically where the premises are:
- Situated in a Retail Shopping Centre; or
- Used wholly or predominantly for the carrying on of 1 or more retail businesses.
A retail business is one that is prescribed as a retail business and there is an extensive list set out in the Retail Shop Leases Regulation 2016 (Qld).
If the Act applies, there are a number of requirements that must be adhered to, including mandatory disclosure obligations and the requirement for a Tenant to provide legal and financial advice reports (unless the exemptions apply) at the outset of the retail shop lease and upon an assignment, option renewal, sublease or franchise in relation to same.
There are also various provisions, duties and obligations placed on both parties to a retail shop lease that apply throughout the lease term, including in connection with:
- Market Rent Review procedures and timeframes for determination of same;
- Ratchet clauses being void (where they preclude the Rent decreasing following a specified review);
- Preventing a Landlord from recovering legal costs in connection with the preparation, negotiation or execution of the lease;
- Preventing the recovery of certain landlord expenses as outgoings (eg land tax, income tax etc);
- Prevention of a Lessee from being required to effect structural or capital repairs (unless caused by them);
- Procedures for compensation in the event of the exercise of a demolition or relocation provision; and
- Procedures for dealing with other common lease disputes that constitute a retail tenancy dispute (as defined in the Act) by a specialised division within the Queensland Civil and Administrative Tribunal.
Our leasing and property lawyers can also provide you with assistance with all aspects of retail or commercial leasing, from the lease preparation, negotiation and execution phase, exercise of options and renewal of lease or matters requiring landlord consent including without limitation, assignment, subletting or other dealings with the lease.