Key considerations in commercial (non-retail) leases
Commercial leases can be complex and a minefield for the unwary. As a minimum, there are a number of essential issues to consider before agreeing to a lease, whether as a landlord or tenant. This starts with ensuring the lease documentation is correct so as to avoid, or at least minimise, disputes arising during the lease period. Key terms can initially be documented in a Heads of Agreement and signed by both lessor (landlord) and lessee (tenant).
Key considerations
These include being clear on:
Term and options: the lease period and any options and how they can be exercised.
Rent: the amount and frequency of rental payments, along with review dates and the review methodology to be used.
Security: the form of security to be provided such as cash deposits or a bank guarantee.
Insurance: the insurance requirements of the tenant.
Assignment: the procedures should the tenant wish to assign the lease to another party including consent and on-going liability.
Fit-out: responsibility for fitting-out the premises and making good the premises at the end of the lease.
Maintenance: who will undertake day-to-day maintenance (usually the tenant) and who is responsible for common areas and larger items (usually the landlord).
Legal fees: whether the tenant is to be responsible for the lease documentation fees as well as their own costs.
Contact our Commercial Lease Lawyers based in Sydney, NSW
At Szabo & Associates Solicitors, we can assist with drafting and reviewing commercial leases, negotiating lease terms, exercising options to renew, subletting and assignment of leases. Please contact us on {{CONTACT_NUMBER}} or complete the online contact form.