Commercial property & leasing

In NSW, leases of retail shop premises are covered by the Retail Leases Act 1994 (NSW), which gives tenants additional protections, such as disclosure requirements and limits on some costs that can be passed on. Other commercial and office leases are mainly governed by the terms of the lease itself. Whether the Act applies depends on the premises and the business, so it’s worth checking before you sign.

Yes. A lease is a long-term commitment and can be difficult to change once signed. A review can explain rent reviews, outgoings, options to renew, make-good obligations, assignment rights and any special conditions, so you understand your obligations and can negotiate before you commit.

For retail shop leases in NSW, the landlord must generally give the tenant a lessor’s disclosure statement and a copy of the proposed lease at least seven days before the lease is entered into. The statement sets out key details such as rent, outgoings and the tenant’s estimated contribution to costs.

Usually, but it depends on your lease. Most leases require the landlord’s consent to an assignment, and retail leases in NSW follow a set process under the Retail Leases Act. If you’re selling a business, the lease assignment is often a key part of the sale, so get advice early.

Many disputes can be resolved by early, practical negotiation. For retail lease disputes in NSW, mediation through the NSW Small Business Commissioner is generally required before a claim can go to the NSW Civil and Administrative Tribunal (NCAT). We can advise you on your position and the best way forward.