A retail lease – applies to a premises that are under 1,000 square metres and used for retail purposes (direct buying and selling of goods). A retail lease will fall under the Retail Leases Act 1994 No 46. These types of leases usually contain more rules about how the lease works, subsequently offering more protection to the lessee (i.e. mandatory disclosure of information).
There are variations and exceptions, and the legislation is different between each state, work with your legal representation to clarify this with respect to the individual property.
You are welcome to read the Retail Leases Act 1994 No 46 here.
In addition to understanding perspective lease agreements, leasees and lessors may also wish to consider:
In terms of retail leases, the lessor and leasee are required provide each other a disclosure statement. Essentially, this mandatory information that both parties should know. The below table lists the common inclusions of a disclosure statement from each party.
Please note this table is an example only, there may be more or less information to disclose.
Leases that exceed 3 years in duration (both commercial and retail), must be registered with the NSW Land Registry Services. This offers a level of protection to both lessors and leasees, as the property will be subject to NSW LRS’s guidelines.
Yes, we are able to provide advice and guidance in consideration of your long term plans.
The majority of the time, the limitations of a property have already been defined by the local council when the land was originally zoned. We will confirm this for you, and, in the rare situation that we need to approach council for approval, we can do that on your behalf.
This is a variable situation, it depends on the documentation and what has been originally negotiated.
At times, there’s an option to renew, sometimes there’s not.
There’s always a commencement date and then lease terms. For example, the commencement date occurs on the 14/September and a three year lease, with no option to renew.
If you are considering leasing a property, and it does not have an option to renew, prior to signing, you could negotiate and ask for a renewal option to be included.
Firstly, the leasees will be notified that the owner of the property has changed.
Once again, in the original documentation, there are clauses protecting the leasee in the event the owner changes and the majority of the time they are safe to complete their lease agreement.