Commercial and Retail leases are complex and there is much to consider before entering into or making a lease agreement. To ensure your interests or assets are protected it is important that you seek advice from your solicitor no matter which side of the lease agreement you are on.
There are significant differences between a commercial lease agreement and a retail lease. Retail leases have conditions that especially protect the rights of the retailer tenant. The relationship between the parties to a retail lease is often affected by the statutory terms of the Retail Leases Act 1994 and the effect of that legislation can often lead to unintended consequences for the parties.
A lease is a contract and both parties to that contract need to very carefully consider their position and their obligations under the lease. There are many common misconceptions in relation to leases and it is very important to get reliable and comprehensive legal advice before entering into a lease agreement.
To ensure that it is suitable for both the owner and lessee the lease terms and conditions need to be drafted and reviewed very carefully.
Consideration needs to be given to:
The rent amount and how it is calculated
How rent increases are applied (commonly increases are on a CPI or % increase each year)
The term of lease
What are each party’s obligations at the end of the lease including makegood provisions
Options available for lease renewal, purchase and rights of pre-emption
Security deposit and bank guarantees (often 3 months rent but also negotiable)
Fit out — who is responsible and who owns it, and what rights exist
Building and surrounds maintenance – structural and ongoing day to day
Outgoings payable by the landlord or the tenant
Use of shared or common areas
What improvements or changes to the property can be made
What happens to the changes at the end the lease.
What signage can be displayed or erected
Does the property include parking, kitchen and bathroom areas
What business activities are allowed under the lease
Commercial and retail leases vary from business to business and need to be specific to suit your circumstances. As with any contract, it is very important to understand your rights and your obligations. The commercial team at Baldock Stacy & Niven will ensure that you are fully aware of those rights and obligations and your interests are protected.
We act for landlords and tenants; large and small, corporate and individual and have a wide range of experience and expertise in all types of commercial, industrial, agricultural and retail leasing.
Contact the Commercial team at BS&N and let us help you.