Leasing commerical property is a much more complex process than residential property. While you may have rented residential property by yourself before, engaging the services of an experienced solicitor to assist you with commercial property is highly recommended to ensure you and your business are protected in the agreement. Most residential leases use a standard form, however commercial leases can vary significantly between each property as terms are able to be negotiated between the lessee and lessor.
Types of Commercial Leases
Commercial Leases can be defined as either:
If your lease is considered to be a retail shop lease, it will be covered under the Retail Stop Leases Act 1994 (QLD), which gives the tenant relevant benefits and protections.
You should also consider your business needs as to whether you require short or long-term leasing. Short-term gives you the flexibility to move as your business grows, however you can be asked to leave by your landlord at short notice. Long-term leasing is ideal for stability of your business, particularly if you can secure a location that captures your market, however there can be serious financial penalities if you need to break the lease.
Negotiating terms of a lease
There are a number of terms and conditions that can be negotiated when it comes to commercial leasing, which can include:
- Affordable rent for the lease duration
- Protection from competition (particularly in a shopping centre, or group of shops with the same lessor)
- Security of tenure for the desired time
- Permitted use of the property
- What outgoings are payable and when
- Clauses that will not interfere with the running of the business, or impose excessive financial burdens
- The ability to operate a profitable business
Before entering negotiations, ensure you know how much you can afford to spend on leasing a premises and what your key terms and conditions are. Unlike residential leasing, negotiation of commercial leases is normal; if you are inexperienced or do not feel comfortable doing this yourself, an experienced solicitor can represent you throughout the process.
Get the best advice on a commercial lease before entering a contact.
Seek advice from an experienced solicitor in Cairns when you begin searching for property to lease for your business. For the best advice every step of the way, contact the experienced team at Marino Lawyers today.