Commercial Leases

Leasing a commercial property in Victoria involves complex legal obligations for both landlords and tenants. Wyndham Partners will guide you through the entire leasing process — whether you’re preparing to lease out your property or entering into a new lease as a tenant. We draft, review, and negotiate lease agreements to ensure they comply with legislation and clearly reflect your rights and responsibilities. From disclosure statements and permitted use clauses to rent reviews, outgoings, and make-good obligations, we help you understand every detail. Our goal is to protect your interests, minimise risk, and ensure a smooth and legally sound leasing experience.

What is a Commercial Lease?

A commercial lease is a written, legally binding contract that gives the tenant certain rights to use a commercial property in exchange for rent. These leases can be intricate, and it is crucial that all terms are understood by all parties.

Disputes between Landlords and Tenants

Disagreements in commercial leases may arise over a number of items including rent, repairs, renewals, or other obligations under the lease. At Wyndham Partners, we can assist in resolving disputes through negotiation, mediation, or litigation if necessary. Our goal is to protect your interests and provide a cost-effective resolution to avoid unnecessary disruption or financial loss.

Considering entering into a commercial lease?

Before entering into a commercial lease, it is imperative that you obtain professional legal advice to ensure your rights are protected and that the lease accurately reflects your intentions and obligations. Wyndham Partners offers comprehensive, tailored legal advice on all aspects of commercial leasing. Our team can guide you through the entire process, from negotiating lease terms to reviewing or drafting lease documentation.

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Frequently Asked Questions

What is the difference between a retail lease and a commercial lease?

A retail lease is a specific type of commercial lease that applies when a premises is used to sell goods or services to the public (e.g., shops or cafes) and is governed by the Retail Leases Act 2003 (Vic).

A general commercial lease applies to other types of business premises, such as warehouses, factories, or office spaces.

Do I need a lawyer to review a commercial lease?

Commercial leases are complex and can carry significant long-term obligations. A lawyer can identify risks, negotiate terms on your behalf, and ensure your interests are protected before you sign the lease.

What key terms should I look for in a commercial lease?

Important clauses to consider include:

Lease term and options for renewal

Rent and rent review mechanisms

Outgoings and operating expenses

Maintenance and repair obligations

Permitted use of the premises

Assignment and subletting conditions

Fit-out and make-good requirements

Termination clauses and default provisions

Can the rent be increased during the lease?

Yes. Rent increases may occur according to the lease terms, typically through fixed percentage increases, CPI adjustments, or market reviews. It's essential to understand how and when these increases apply.

Who pays for repairs and maintenance?

Responsibility for maintenance and repairs should be clearly set out in the lease. Typically, tenants are responsible for internal maintenance, while landlords handle structural repairs—but this varies between leases, hence why it is important to seek legal advice to understand your obligations.

What are "outgoings" and who pays them?

Outgoings refer to the landlord’s costs for operating and maintaining the property, such as council rates, water, insurance, and common area maintenance. The lease should specify which outgoings the tenant must pay and how they are calculated.

What is a make-good clause?

A make-good clause requires the tenant to restore the premises to its original condition (or a specified condition) at the end of the lease. These obligations can be costly, so it’s crucial to understand them before entering the lease.

Can I transfer or assign my lease to someone else?

It may be possible to assign or transfer your lease. Many leases allow assignment or subletting with the landlord’s consent, but conditions often apply. Legal advice is important to ensure compliance and protect your rights during the process.

How long should a commercial lease be?

Lease terms vary based on business needs. Many leases are for 3 to 5 years with options to renew. The length of the lease should align with your business plans and provide flexibility for growth or change. Any commercial lease under a 5 year total term and option period must have a section 21 Waiver Certificate from the Small Business Commissioner whereby the tenant acknowledges that they are aware of their right to a 5 year term has been encroached.