Retail Shop Leases
Retail leasing in Queensland has its own legal framework
A retail shop lease is a commercial lease, but it may also be subject to specific Queensland legislation regulating aspects of the relationship between landlord and tenant.
That can affect the steps required before the lease is entered into, the information that must be provided and the rights and obligations of the parties throughout the leasing relationship.
At Watt & Severin, we advise landlords and tenants on retail shop leases and help them understand both the lease itself and the statutory requirements that apply to it.
How can we help?
Retail Landlords
Lease preparation, disclosure and advice for landlords of retail premises.
Retail Tenants
Lease review, disclosure and advice before entering into a retail shop lease.
During the Lease
Advice about options, assignments, variations and issues arising during the tenancy.
Retail Lease Disputes
Advice when a disagreement arises between landlord and tenant.
Does the Retail Shop Leases Act apply?
Not every commercial lease is a retail shop lease
Queensland's Retail Shop Leases Act 1994 applies to leases that fall within the legislation.
Whether a particular lease is covered depends upon matters including the nature of the premises, the business conducted from them and, in some cases, the type of centre in which the premises are located.
It is therefore important to establish whether the legislation applies rather than assuming that a lease is — or is not — a retail shop lease.
Where the Act applies, its requirements operate alongside the terms of the lease.
We can advise you about whether the retail shop leasing regime applies to the proposed arrangement and what that means for the transaction.
Retail Landlords
Getting the documentation and process right
A landlord entering into a retail shop lease needs to consider both the commercial terms of the proposed lease and the requirements imposed by the retail leasing legislation.
We can prepare and review retail shop leases and assist with the documentation and disclosure requirements associated with the leasing process.
The lease itself may deal with matters including:
rent and rent reviews;
outgoings;
the permitted use of the premises;
the lease term;
options to renew;
security and guarantees;
insurance;
fit-out;
repairs and maintenance;
assignment;
make-good obligations; and
default and termination.
The statutory regime may impose additional requirements that need to be considered when the lease is prepared and entered into.
We help landlords address both aspects of the arrangement.
Need advice about a proposed retail shop lease? Talk to Watt & Severin.
Retail Tenants
Understand the lease before committing to the premises
For a retailer, the premises can be fundamental to the business.
A lease may commit the business to the location and significant occupancy costs for a number of years.
Before signing a lease or other leasing document, a tenant should understand both the commercial terms being offered and the legal obligations that will follow.
We can review the proposed lease, explain its terms and advise on matters that may require clarification or negotiation.
This may include:
the rent and how it can change;
outgoings and other occupancy costs;
the permitted use;
the length of the lease;
options to renew;
fit-out obligations;
trading requirements where applicable;
security deposits, bank guarantees and personal guarantees;
repairs and maintenance;
assignment if the business is later sold;
make-good obligations when the lease ends; and
circumstances in which the lease may be terminated.
We can also explain the disclosure process and the statutory protections and obligations relevant to the proposed lease.
Considering retail premises? Talk to us before you sign.
Disclosure and the leasing process
Disclosure is an important part of retail leasing
Queensland's retail leasing legislation contains disclosure requirements intended to provide relevant information to parties entering into certain retail leasing arrangements.
The documents required, who must provide them and the applicable timing can depend upon the nature of the transaction.
Disclosure should therefore be considered as part of the leasing process rather than left until the lease is ready to be signed.
We can help identify the applicable requirements, prepare or review the relevant documentation and coordinate the disclosure process with the preparation or review of the lease.
During the Lease
The lease may need attention as circumstances change
Retail leasing issues do not end once the documents have been signed.
During the term, questions may arise about the parties' obligations or changes may need to be documented.
We can assist with matters including:
assignments of lease;
variations;
options and renewals;
rent and outgoings issues;
landlord consents;
changes associated with the sale of a business; and
other issues arising during the leasing relationship.
If a tenant is selling the business operated from the premises, the lease and business sale need to be coordinated carefully. The ability to transfer the leasing arrangements to the buyer may be critical to the business transaction.
Retail Lease Disputes
Understand the legal position before deciding what to do
Disputes can arise about the interpretation of the lease, rent, outgoings, repairs, maintenance, disclosure, assignment, make-good obligations, alleged breaches and other aspects of the landlord and tenant relationship.
Retail shop lease disputes may also be subject to statutory processes that differ from those applying to an ordinary commercial dispute.
We can review the lease, relevant correspondence and surrounding circumstances, explain the legal position and help you consider the appropriate next step.
Where the matter can be resolved commercially, that may provide a better outcome than allowing a disagreement to escalate.
Where formal processes are necessary, we can advise you about the available options.
Retail lease or commercial lease?
If you are unsure whether your proposed lease is governed by the retail shop leasing legislation, you do not need to work that out before contacting us.
Send us the proposed lease or tell us about the premises and the business that will operate from them.
We can help identify the applicable legal framework and the advice you need.
For commercial leases that do not fall within the retail shop leasing regime, see our Commercial Leasing page.
Commercial Leasing →
Talk to us before you sign
Whether you are a landlord or tenant, it is preferable to identify leasing issues before the parties become committed.
If you are negotiating a new retail shop lease, renewing an existing arrangement or dealing with an issue under a current lease, talk to us about what is happening and what you are trying to achieve.
Talk to Watt & Severin about your retail shop lease.