Commercial Leasing

Commercial Leases can be complex and it is essential that you seek expert legal advice to ensure you don’t encounter problems in the future.

Commercial Leasing


Leasing a commercial property is a complex, difficult and time consuming activity, and if the commercial leasing document subsequently drawn does not correctly reflect the terms of the leases agreed between both Lessor and Lessee, then complex issues of interpretation or otherwise can be experienced in the future. For example, if the Lease does not include a provision in the option clause that the option is not to be included in any further Lease after the first or second option is exercised, then you could have a Lease that continues on with options one after another with no end.

Therefore, you need to ensure that the agent that is being used properly negotiates the terms and conditions of the Lease and that these are incorporated in a non-binding Heads of Agreement, which can then be presented to the lawyers for the Lessor and Lessee and the lease documentation prepared.

The Issues

You also need to consider carefully in commercial leasing whether the Lease is to have a Bank Guarantee of Security or a Security Bond and whether or not Personal Guarantees are to be given by the directors of the Lessee if a company is to be the Lessee.

Precise details of the Lease area need to be included in the Lease, particularly if the Lease is for a longer period of time, as some leases if they are to be registered require a plan to be attached. Alternatively, if only part of a building is being leased for a shorter period of time, then a full description of the part of the building that’s being leased needs to be included.

The yielding up provisions when the Lease comes to amend need to be precise and clear so that both parties are aware of their obligations when the Lease comes to an end.

There are other technical issues that need to be considered in the Lease, such as who maintains the air conditioning, who cleans the property, and whether or not outgoings are to be included or excluded in the rental.

The Process

Our property team has over 40 years of experience in assisting with leases and disputes. If you have any queries about commercial leasing, and are a tenant or a landlord, please contact our property team at or or on 02 8987 0000.

Contact Us

Please get in touch or send us a message using the form to the right.

Level 7
75 Elizabeth St
Sydney NSW 2000

+61 2 8987 0000

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