The Lowdown on what Tenants need to know when Leasing a Premise

Andrew Grima

Leasing premises is a major investment decision for anyone with a business. It can be complex and fraught with potential problems, not the least of which is the prospect of losing a business should something go wrong!

When you consider that one of your most important business assets is your lease, as a tenant it becomes critical that you understand the implications of a lease and your rights and obligations.

In fact, your premises are often the most tangible part of your business. Many aspects of business are affected by your location - from attracting clients/customers through to delivery and receipt of goods - why risk losing it all over a lease dispute? Expert legal advice will ensure that your needs and your rights are taken into account during a lease negotiation. Not only will it enhance your business opportunities, but in the event that you choose to sell your business, a sound and secure lease is vitally important and could make or break the deal.

When you have found the right premises, in the right location for your business, some specific issues you need to consider when negotiating the lease include:

General Items for Negotiation in a Commercial Lease

Most commercial leases will take into account the following “items” that should be negotiated between you and the landlord (lessee and lessor) and incorporated into the documentation:

Retail Leasing – Special Considerations

Retail leases are treated differently to other commercial leases and are covered by a set of unique rules. The Retail Leases Act in NSW has an impact on the negotiation and drafting of retail leases. Ignorance can lead to significant penalties so expert advice is recommended.

Some important aspects of the Act include:

As a retail tenant, you should be aware of the impact of the Act whether you are negotiating a new lease or when your current lease expires and comes up for re-negotiation.

If you would like further information or have questions in regards to leasing, please contact:

Andrew Grima, Principal
Phone: 02 9895 9228
Email: agrima@colemangreig.com.au