All About Daily Legal Translation News

Logan Lawyer For Your Commercial Lease

Jan 15

Logan Lawyer For Your Commercial Lease

 

When analysing a potential commercial property, check whether the heating and air conditioning systems are designed for the tenants’ capacity in the building. 


Check the data cabling capabilities and ensure the building can offer high speed and secure wifi.

If it is a larger property and has other tenants, go and have a chat to them about any  insights into the problems of the building and the surrounding area. 

Some simple questions you can ask office building tenants are: 

  • Why did you move into this building in particular?
  • What other buildings have you looked at?
  • Has this building met your expectations?
  • What issues are there with this building?
  • Are the building’s managers approachable?
  • Do you intend to renew your lease when it expires? If so, why or why not?

 

Commercial lease terms for retail properties are different.


Thinking about signing a retail lease?
Retail leases can have some different clauses that you should know about!
Always have a commercial lawyer look at your lease agreement.
The old adage about “what is not in the lease is usually more important than what is in the lease”
Having a commercial lawyer look at your lease contract will quickly highlight the areas that may be of concern!
If you do not have the key points that relates to you and your business and they are not in the lease agreement – Then you do not have any way to dispute something or even terminate your lease if needed/

 

 

There are usually four ways to sign a retail lease:


Please fixed rent for a period of, for example, three years.

A fixed rent with CPI increases adjusted annually for a period of, say, 3 to 5 years and with a review of the rent to the market rent at a specified interval during the lease or at the expiry of the lease if an option is taken up.
This is the most common form of the lease as it seems fair to both parties. 
Moreover, it gives the retailer security and the owner reasonable security of tenure.

A fixed minimum rent plus a percentage of the turnover the retailer makes. This is a typical leasing arrangement for supermarkets.

A direct percentage of turnover.

The latter two arrangements are standard in food retailing, especially for supermarkets, and the large shopping complexes like to structure their leases in this way.

However, they have some obvious disadvantages.

The more complex the retailer works, the more they have to pay. It is also challenging to set a percentage, and you need to know the retailer’s business well.

Always seek advice before you enter any commercial lease!

 

Level 2, 3908 Pacific Highway, Loganholme QLD 4129
07 3089 1804
-27.66603359447476, 153.175716361849

https://carolynryder.com/