Essentially a Commercial Lease allows a tenant to occupy a commercial property such as a retail shop, a factory, an office, a warehouse or industrial premises in return for rent and other incidentals as set out in and agreed to by landlord and tenant.
A Commercial Lease is a binding contract and can be enforced in a court of law by either landlord and tenant in the event of a dispute.
However if proper consideration is given by both parties prior to agreeing to the conditions of the lease the chances of a future dispute diminish exponentially. Although a commercial lease may sound like a simple enough agreement we can assure you that in most cases it is anything but. Our many years of Commercial Lease preparation and dispute resolution have made us one of the most sought out legal firms in NSW for commercial lease matters.
There are a wide variety of terms / conditions that can be included in a Commercial Lease but the normal minimal requirements are:
- Term of lease
- Rent amount
- Payment frequency and method of payment
- Rent review parameters
- Option to renew the lease
- Permitted usage of the leased premises
- Responsibility for property outgoings rates, insurance etc
- Mandatory insurance requirements
- End of lease obligations (e.g. repairs, replacements, redecoration, etc.)
- Cash bond or bank guarantee as security for damage or non-payment of rent
In addition, there is usually an indemnity clause in which the tenant agrees to release the landlord from any claims from someone entering the premises while it is being leased by the tenant. This is usually covered by the tenant’s public liability insurance.
If you have any Commercial Lease inquiries as a landlord or as a tenant call us during office hours on (02) 9554 8111 or use the form below to contact us online.