Commercial Leasing
Lease review
before you sign.
Commercial and retail lease advice for tenants entering new premises, renewing, relocating or taking an assignment of an existing lease.
Tenant Lease Review
The lease shapes the business risk.
A tenant usually receives a lease prepared for the landlord. That does not mean it is fixed. Before signing, the lease should be checked against the heads of agreement, the premises, the fit-out plan, the business model and the tenant's exit strategy.
We review proposed commercial and retail leases for tenants and explain the commercial effect of the clauses that usually matter most: rent, outgoings, rent reviews, incentives, permitted use, make-good, repairs, assignment, subletting, guarantees, default and options.
For retail premises, the Retail Leases Act 2003 (Vic) may impose disclosure obligations and override parts of the lease. The disclosure material, proposed lease and any incentive or fit-out agreement should be reviewed together.
Before You Commit
The real cost is not just rent.
The commercial cost of premises includes rent, reviews, outgoings, fit-out, approvals, security, insurance, repairs and exit obligations. A lease that looks affordable at commencement can become expensive if outgoings are broad, incentives are repayable, make-good is unclear or the tenant cannot assign the lease when the business changes.
A tenant review should compare the documents against the transaction: what was promised in the heads of agreement, what the landlord must deliver, when rent starts, what conditions must be satisfied and what happens if the premises are not ready.
Money
Base rent, GST, outgoings, management fees, land tax treatment, rent review, incentives and security should be checked together.
Premises
Condition, landlord works, fit-out approvals, services, access, signage, permitted use and compliance obligations should match the business plan.
Control
Options, assignment, subletting, relocation, demolition and exclusivity clauses affect whether the tenant can stay, move or sell.
Exit
Make-good, reinstatement, repair, guarantee release and handback requirements should be understood before the lease is signed.
Review Focus
What tenants should check first.
The issues below often decide the real cost and flexibility of the premises.
Rent & Incentives
Base rent, review method, rent-free periods, contributions and repayment triggers should be clearly documented.
Outgoings
The lease and disclosure should identify what costs are recoverable, how estimates work and when reconciliations occur.
Permitted Use
The permitted use must match the business, licences, planning position and any future expansion.
Fit-Out & Works
Landlord works, tenant works, approvals, timing, defects and handover conditions should be allocated clearly.
Make-Good
End-of-lease obligations can be expensive if the clause requires full reinstatement or vague repair standards.
Assignment & Exit
Assignment, sublease, sale of business and early exit options should be understood before the tenant commits.
Tenant Services
How we can help.
We provide practical advice before signing and focused assistance when a lease issue emerges.
Pre-Signing Review
Reviewing the lease, disclosure statement, incentive documents, fit-out obligations and security requirements before execution.
- Lease Review
- Disclosure Check
- Risk Summary
- Negotiation Markup
Retail Lease Advice
Assessing whether the Retail Leases Act 2003 (Vic) applies and how it affects disclosure, outgoings, rent review, options and assignment.
- Retail Premises
- Brochure & Disclosure
- Outgoings
- VSBC
Assignment or Sublease
Advising tenants buying a business, selling a business, assigning a lease or seeking consent to sublet part of the premises.
- Assignment
- Sublease
- Consent
- Release
Common Questions
Tenant lease review, answered.
These questions often arise before a tenant signs a new lease or agrees to take over existing premises.
When should a tenant get lease advice?
Before signing the lease, paying non-refundable money, starting fit-out works or taking possession. Earlier advice gives more room to negotiate rent, outgoings, make-good, options, guarantees and conditions.
Is the heads of agreement enough?
No. Heads of agreement record the commercial deal, but the lease controls the legal obligations. The lease can add detail about outgoings, repair, default, assignment and handback that materially changes the risk.
What are outgoings?
Outgoings are premises costs the landlord seeks to recover from the tenant, such as rates, insurance, maintenance and common-area costs. For retail leases, recovery and disclosure are regulated.
Can I negotiate a landlord's lease?
Usually, yes. Common negotiation points include permitted use, rent review, incentive repayment, make-good, assignment, repair obligations, personal guarantees and conditions before commencement.
What is a personal guarantee?
A personal guarantee makes another person, often a director, liable for the tenant's lease obligations if the tenant defaults. The scope and release of the guarantee should be checked carefully.
What if the premises are not ready on time?
The lease or agreement for lease should state what must be completed before commencement, who bears delay risk and whether the tenant can terminate or defer rent if handover is late.
Can I sell my business and transfer the lease?
Usually only with landlord consent and assignment documents. The lease, retail leasing rules and sale contract should align so settlement is not delayed by lease consent.
What is make-good?
Make-good is the tenant's obligation at the end of the lease. It may require cleaning, removal of fit-out, repair, repainting or reinstatement. It should be clear and costed before signing.
Do I need an option to renew?
An option gives the tenant a contractual pathway to stay for a further term. It can protect goodwill and fit-out investment, but the deadline and conditions must be followed exactly.
What if I have already signed?
Advice can still help with administration, rent reviews, assignment, options, disputes and exit. The strategy will depend on the signed lease and any statutory rights that apply.