Butlers Business Lawyers assist tenants and landlords when negotiating a commercial lease, as well as lease renewals.

A commercial lease is an important commercial contract for any business, and its terms often bind a tenant for several years. It is imperative to ensure that tenants have their lease reviewed by a highly experienced legal advisor before entering into a commercial lease with any party.

Lease Review

The following are important things that must be considered as part of a commercial lease review:

  1. Rent payable;
  2. Application of a rent-free period;
  3. Term of the lease;
  4. Options to renew;
  5. Permitted use of the premises;
  6. Assignment of the lease and subleasing;
  7. Calculation of rent increases;
  8. Make good requirements on termination; and
  9. Security (i.e. bank guarantee, security deposit or personal guarantee).

Lease Negotiation

Ordinarily, the landlord will arrange for the lease to be prepared and will then provide a draft lease to the tenant. At this stage, the tenant should review and negotiate the terms of the lease. A commercial lease may contain a provision where the tenant will reimburse the landlord for the costs associated with the costs of preparing, negotiating and registering the lease. A well-negotiated lease also reduces the potential for disputes in future as well as possibly adding value to a business.

The following are the most common terms when negotiating a commercial lease, between a tenant and landlord:

  1. Amount of rent;
  2. Which outgoings are payable by the tenant, and in what proportion;
  3. Options for further lease terms;
  4. Special conditions, such as renovation or refurbishment obligations, rent-free periods, due diligence periods, and legal costs.

Both landlords and tenants should engage lawyers to ensure that their interests are adequately protected by the terms of the lease.

Ensure that you are aware of all your rights and obligations by obtaining legal advice from experts in commercial leases. To talk to our experienced lawyers about commercial lease negotiation call us on (02) 4929 7002, or email us at enquiries@butlers.net.au.


“Butlers prepared standard contracts for every-day use in our business. The team ensured that the contracts complied with Australian Consumer Law and advised on best practices for PPSR registration. Their experience and knowledge in this complicated area was invaluable, and we feel that our business now has the best protection from expensive legal disputes.”


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negotiating a commercial lease

Want to talk to one of our experienced commercial lawyers? Call us on (02) 4929 7002, email us or complete an enquiry form.

Want to talk to one of our experienced commercial lawyers? Call us on (02) 4929 7002, email us or complete an enquiry form.