A commercial lease is a legally binding contract between a business owner and the owner of the real estate property. It is one of the most important legal documents that large scale businesses need when renting out their premises for a non-retail activity is a commercial lease.
A commercial lease is a legal document that specifies the rights and obligations of both the Lessor and the Landlord. These documents are complex compared to residential or retail leases because they are usually tailored to each individual's circumstances. The terms and conditions of the lease must be carefully considered to make sure they match the needs of the business and ensure that the business is protected.
Essentially, it is a contract for the rental of commercial premises, this premises must be one that is not categorised to be as retail premises. That is, a premise undertaking retail activity by providing the sale of goods or services to the public. Instead, a commercial lease applies to a business premise that can be used for warehousing, storage or any other commercial activity that falls outside the scope of
retail activity as per the Retail Leases Act 2003 (Vic).
Commercial leases can be a complicated area of law, depending on their size, terms and complexity. It is important to have a lawyer with experience involved in drafting or reviewing the lease agreement in order to ensure that the lessor or landlord understands their obligations under the commercial lease. Further, it is critical that a commercial lease is reviewed by a lawyer as they will be able to identify any potential legal issues including any abnormal special conditions. Often commercial leases are negotiable, specific terms or restrictions that can be negotiated can include but are not limited to the rent amount, rent increases and the duration of the lease.
At ASAP, our lawyers can assist both Lessors and Landlords in ensuring that their rights are protected under a commercial lease. It is important that you understand what you’re getting into before signing a binding contract.
Need advice on a Commercial Lease?
ASAP Lawyers regularly accept instructions to draft, advise and renew commercial leases. Contact us on 03 9450 9400 to make an appointment for a consultation.