If you are a property owner you want to make sure that your significant investment is protected with a lease that covers all potential problems. If problems arise, you want knowledgeable, practicable advice leading to a swift resolution.
If you are leasing premises you want advice that the lease suits your circumstances and what all that fine print means.
Landlord or tenant, you need OFRM to assist you with your leases.
A Commercial Lease refers to the lease of commercial property such as:
- office space
- industrial sheds
- storage sheds
- retail shops (whether they are within a shopping centre or not)
- working yards
- any other non-residential property
If the property is a retail premises, it is governed by the Retail Leases Act 2003 and particular requirements apply such as:
- the requirement for additional disclosure
- prohibition of some terms and conditions which may otherwise include in a non-retail commercial lease.
Given the consequences of failing to adhere to the requirements of the Retail Leases Act 2003 it is important that landlords seek advice on whether the premises they wish to lease out is a retail premises before beginning negotiations with prospective tenants. As a general rule of thumb any premises which your customers can attend is a retail premises.
With the exception of those terms and condition proscribed by the Retail Leases Act 2003 the remainder of the terms and conditions of any commercial lease are typically the subject of negotiation between landlord and tenant.
Typical terms and conditions cover:
- the period of the lease and whether there are any options for renewal;
- rent, outgoings and the rent review mechanisms (such as CPI increases, fixed percentage increases and market reviews);
- the tenant's scope to carry out "fit out" works to make the premises suitable for the proposed use;
- the scope of the tenant's obligation to "make good" the premises at the end of the lease term;
- insurance, indemnity and liability for damage to the premises;
- bank guarantees and security deposits; and
- a dispute resolution mechanism.
If you are planning on leasing a commercial property, whether as landlord or tenant, please contact us on 03 5445 1000 to discuss how OFRM can assist you with your leasing needs.