LEASING

Leasing a commercial  and retail property in New South Wales involves several key steps and considerations to ensure a smooth process. Here’s a detailed guide on what is required:

1. Pre-Lease Considerations

• Determine Needs: Assess your business requirements, including location, size, and facilities.
• Budget: Consider your budget for rent, outgoings, and any potential fit-out costs. It is important you speak with an Independent Licensed Accountant. 

2. Finding a Property

• Property Search: Use real estate agents, online property platforms, and local networks to find suitable properties.
• Inspect Properties: Visit and inspect potential properties to ensure they meet your needs.

3. Lease Agreement

• Negotiation: Negotiate lease terms with the landlord or their agent through our firm to ensure you obtain the right lease for your business. Terms we discuss include:
  • Lease Term: Duration of the lease, renewal options, and break clauses.
  • Rent: Base rent, rent reviews, and any rent-free periods or incentives.
  • Outgoings: Responsibility for costs such as utilities, maintenance, and property management fees.
  • Fit-Out: Any requirements or permissions for modifications to the property.
• Lease Document: Ensure a formal Lease Agreement is prepared. This document should cover all agreed terms and conditions. We will ensure it meets the Land Registries Requirements. Note for retail leases, there needs to be specific requirements met which align with the Retail Leases Act. 

4. Due Diligence

• Legal Advice: Have our office review the lease agreement to ensure that all terms are clear and fair.
• Property Checks: Verify the property’s compliance with local zoning laws, building regulations, and any outstanding issues or disputes.

5. Signing the Lease

• Exchange of Contracts: Both parties (tenant and landlord) sign the lease agreement. This is often done through their respective representatives.
• Deposit/Bond: Pay any required security deposit or bond, which is usually equivalent to 1-3 months’ rent.

6. Pre-Move-In Requirements

• Insurance: Arrange for appropriate insurance coverage, including public liability and contents insurance.
• Utilities: Set up utilities such as electricity, water, and internet services.
• Fit-Out: If applicable, complete any fit-out or renovation work as agreed in the lease.

7. Ongoing Obligations

• Rent Payments: Make timely rent payments as specified in the lease.
• Maintenance: Maintain the property in accordance with lease terms, including repairs and upkeep.
• Compliance: Ensure compliance with all relevant laws and regulations, including health and safety standards.

8. End of Lease

• Notice of Intent to Vacate: Provide notice to the landlord as required by the lease agreement if you plan to vacate the property.
• Condition Report: Conduct a final inspection and address any issues to ensure the property is returned in the agreed condition.
• Bond Return: Follow the process to recover any security deposit or bond, subject to the property’s condition and lease terms.

Additional Considerations:

• Tenant Representation: Consider having a commercial real estate agent or tenant advisor to assist with negotiations and property selection.
• Legal Obligations: Familiarise yourself with the Retail Leases Act 1994 (NSW) if the property is in a retail setting, as it provides specific protections for retail tenants.

Leasing a commercial or retail property is a significant decision and investment, so thorough research and professional advice are crucial to ensure that the lease meets your business needs and is legally sound.