Leasing - Commercial and Retail

Commercial and Retail Leasing

Many businesses lease premises to operate their businesses from. Often these leases are for a long period of time and contain clauses which one or both parties may not understand which can lead to conflict further down the track. Seeking professional advice from us can help avoid these issues allowing everyone to get on with the important task of running their business.

Listed below are some of the rights and obligations of both the Lessor and the Lessees:

Lessor

disclosure obligations,
the right to receive rent,
method of rent review,
dictate conduct - unconscionable conduct is prohibited,
give rights when a building has to be upgraded, demolished etc,
dictate the outgoings, maintenance and capital costs which can and cannot be passed on to tenants,
give the right to recover damages from tenants etc..

Lessees –

Often lessees feel powerless when it comes to negotiating the terms of the lease and feel they are forced to sign a document, the contents of which they have no control over. They may not understand or misunderstand the terms of the lease which can ultimately affect their ability to continue with their business / their livelihood.

Some of the rights and obligations of a tenant include –

imposed disclosure obligations
the right to carry on their business
the right to deal with the lease and business assets
the prohibition in engaging in unconscionable conduct
the requirement to pay rent
rent review – landlords and tenants can become embroiled in a dispute over the timing of and calculation of a rent review
termination rights and other rights if forced to relocate, or the building being tenanted is to be demolished
a requirement to pay the lessors outgoings – a dispute can arise in relation to the calculation of the amount
the right to exercise an option to renew or hold over.

There are many situations which can potentially cause conflict between a lessor and a lessee, however with the right advice these issues can be avoided

Our team at QMT Law will ensure the conditions of the lease are feasible for the business you are conducting at the premises. Ideally you should undertake a discussion with us before you conclude your discussions with the landlord.

Telephone: 07 3223 6400 Facsimile: 07 3223 6444 Address: Level 5, 179 Turbot Street, Brisbane 4000
Post: GPO Box 2500, Brisbane 4001 | DX Mail: DX 40096 Brisbane
Email: qmt@qmtlaw.com.au ABN 37 355 684 469