Retail and Commercial Leasing – Using a Contract Lawyer
Entering into a retail lease or commercial lease agreement can be a considerable financial decision, whether as landlord or tenant. Retail and commercial leasing can be substantially more complicated than a residential lease. Additionally, you are not covered by the same protections that cover residential rental properties.
Retail and commercial leases are legal contracts. As such, if you are looking at entering into a lease for your business, it is important to understand the implications of the lease agreement that you are signing. Similarly, if you are a landlord you’ll want to negotiate the best lease agreement for your property without breaching any laws.
Unlike the residential market, there are no standard lease agreement templates for commercial or retail leasing. There are simply too many factors involved with matching intended business operations and a commercial property.
Due to the factors and potential liabilities associated with committing to commercial leases, it is vital to seek legal help.
If you are the lessor (landlord), GP Legal can help draft and register suitable lease agreements that protect your interests. Additionally, we can help mediate any lessee (tenant) disputes before they go too far, or initiate legal proceedings if necessary.
If you are a business wishing to lease a commercial or retail property, we help review and understand any agreements before you sign. We can help negotiate lease conditions or terms (or even fair market rents) with your landlord. Additionally, we can represent you in court or mediation if your landlord is acting unfairly.
Below, we’ll highlight a few more elements to consider when entering into commercial or retail lease agreements.
Drafting Retail Lease and Commercial Lease Agreements
If you are the lessor (landlord), the goal is to earn rental income and protect your property from abuse. Most tenants will look after your property and abide by the conditions set out in the lease. Where your lawyer is necessary is foremost;
- with drafting and negotiating the initial lease terms, and;
- helping protect your interests against the few tenants who breach the terms & conditions.
Drafting an effective commercial or retail lease agreement can help avoid trouble further down the road. Ensuring that there are clear expectations and covering all aspects of a tenancy are vitally important. Commercial or retail premises can be much more varied in both size and function than residential properties. So too are the lease contracts connected with these retail and commercial properties.
Whilst everyone hopes to have a good ongoing relationship between landlord and tenant, sometimes things can become difficult. It is these circumstances where it is also important to have great lawyer on your side. They can help negotiate or litigate with the ideal goal of mitigating financial loss from a breached agreement.
Entering into a lease agreement for your business
As the lessee (tenant) you’ll be obligated to meet all the conditions outlined in the lease once it is signed. As such, it is vital that you understand the implications of all aspects of the proposed agreement. GP Legal or your own commercial lawyer can also help negotiate clauses that are fairer or suited to your needs.
Additionally, your business may have specific requirements for the property in order to operate as desired. It may be necessary to negotiate special conditions in the lease to allow you to carry out intended business functions.
Once invested into a property your business ideally wants to continue smooth operation for as long as possible. Knowing where you stand allows you to make appropriate business decisions and maintain profitability. Being face with unfair eviction is definitely not conducive to the wellbeing of your business. Having a good commercial lawyer representing you will help achieve a more desirable outcome.
Similarly, you may want to exit your lease early. A good example would be that you’ve experienced good business growth and need to move to a larger premises. Your lawyer can help negotiate a good early exit to your lease and thereby minimise costs.
Another situation can be where the lease is held by multiple partners in a business and one partner buys out the others. In this circumstance, the lease agreement would need to be assigned to the new sole owner. There are potential repercussions to such a scenario such as occurred in Lockrey v Historic Houses Trust NSW [2012] NSWSCA .
GP Legal Commercial Lawyers
GP Legal are NSW based commercial lawyers highly experienced in retail and commercial leasing matters. If you are leasing a retail or commercial property, either as lessee or lessor, contact us to discuss your legal needs.