Leasing Commercial Property
A guide for commercial landlords
Owning a commercial property presents an exciting opportunity for generating income and building a portfolio for long-term growth. At the same time, leasing a commercial property can sometimes seem like an endless list of decisions and obligations. As experienced property lawyers, we’ve helped countless owners with an all-inclusive approach to the commercial property lease process.
At P&B Law, we create and review leases designed to best protect you in the complex legal world of property leasing. We can advise you on such matters as:
Rights and obligations
A clear Commercial Lease Agreement outlines the rights, responsibilities and obligations of both parties. It should cover everything from maintenance responsibilities to permitted uses of the property while protecting your interests throughout the tenancy.
Rent reviews
Rent reviews are a common feature in Commercial Leases. Different methods exist for adjusting rent, including fixed annual increases, Consumer Price Index (CPI) adjustments and market value reviews. Researching the common methods and their implications will help you decide on the option that best aligns with your property type, market conditions and long-term goals.
Outgoings, taxes and fit-out costs
Commercial Leases often involve shared costs beyond rent. It's important to understand your liability for outgoings specific to the property, such as utilities and property management fees, land tax and responsibilities regarding the fit-out costs of the premises.
Securing your investment
Deposits, guarantees and other forms of security are essential for protecting your investment as a property owner and landlord. A property lawyer can advise on appropriate security measures based on the specific terms of your lease agreement.
Sinking funds and other contributions
Some Commercial Leases involve contributions to a sinking fund, which is a reserve for major repairs and maintenance. Similarly, some leases may require contributions to marketing and promotional efforts for the building or complex. Reviewing the terms of such contributions means you understand your financial obligations and avoid disputes down the line.
Dispute resolution strategies
Even with a well-drafted lease, disagreements can arise between tenants and landlords. At P&B Law, we can equip you with commercial landlord advice and effective strategies for resolving disputes efficiently and fairly.
Retail Leases Act Compliance
The Retail Leases Act 2003 (applicable in some cases) outlines specific regulations for Commercial Leases involving retail tenants. If the Retail Lease Act 2003 applies, you must provide a Disclosure Statement and a Small Business Commissioner Information Brochure before signing the lease. Knowing details like this fosters a strong owner-tenant relationship and paints a clear financial picture for both parties.
Please note: The information covered in this guide is general and should never be substituted for professional legal advice. Contact us for further information.