Entering a commercial lease is a serious legal and financial commitment. Whether you’re leasing retail space, office premises, or an industrial warehouse in Queensland, understanding the legal framework can help you avoid disputes and protect your investment. This guide outlines the key issues for both landlords and tenants, plus where to get support if a leasing dispute arises.
What Is a Commercial Lease?
A commercial lease is a legally binding agreement between a landlord (lessor) and a tenant (lessee) for the use of business premises. It differs from a residential lease and is governed by:
- The Property Law Act 1974 (QLD)
- The Retail Shop Leases Act 1994 (QLD) (applicable to retail leases)
Not sure if your lease terms are fair? Talk to our team before you sign.
Legal Considerations for Tenants
1. Lease Terms & Renewals
Most leases run for 3–5 years with optional renewals.
Tip: Negotiate renewal terms upfront to avoid disruption to your business.
2. Rent & Outgoings
Beyond monthly rent, tenants may be liable for outgoings like council rates, insurance, and utilities.
Tip: Ensure the lease clearly lists what outgoings you are responsible for.
3. Fit-Out & Make Good
Clarify fit-out responsibilities before signing.
Tip: Watch for clauses requiring you to restore the premises to its original condition when vacating.
4. Retail Lease Protections
Under the Retail Shop Leases Act, tenants receive extra protections like:
- Mandatory disclosure statements
- Limits on certain landlord pass-through costs
Legal Considerations for Landlords
1. Security & Guarantees
Landlords typically require a security deposit or bank guarantee.
Tip: Ensure these are legally enforceable and clearly documented.
2. Repairs & Maintenance
Structure vs internal – the split must be clearly defined in the lease to avoid future disputes.
3. Termination Rights
Landlords can terminate for breaches like non-payment, but must follow proper legal steps to avoid wrongful eviction claims.
4. Retail Lease Compliance
Retail landlords must issue a disclosure statement before signing. Failing to do so may give tenants termination rights or lead to penalties.
Common Pitfalls in Commercial Leasing
1. Misunderstanding Rent Reviews
Rent can increase during the lease, often annually by CPI or to market rates.
Tip for tenants: Negotiate caps on rent increases upfront.
2. Ambiguity in Outgoings Clauses
Poorly defined outgoings can cause unexpected costs like insurance or strata fees.
3. Lack of Disclosure Statements
Retail landlords must provide these before lease signing; without them, tenants may have termination rights.
4. Insufficient Exit Strategies
Tenants often overlook clauses about ending or assigning leases early, leading to difficulties later.
📌 Read: Commercial Lease Risk Assessment: Identifying Red Flags & Legal Tips Before You Sign
Negotiating a Lease: Tips for Success
1. Seek Legal Review Early
Don’t sign until your solicitor checks for risk.
2. Clarify Permitted Use
Ensure your business activities are allowed under the lease.
3. Negotiate Incentives
New tenants may be offered rent-free periods or fit-out contributions.
4. Include Dispute Resolution Clauses
These can save significant time and cost if things go south.
Dealing with Disputes
Disagreements are common but often avoidable with a clear lease and good legal advice.
Common Issues:
- Rent arrears
- Misrepresentation
- Maintenance disputes
- Termination issues
How to resolve:
- Check the lease’s dispute clause
- Use mediation via QCAT
- Seek legal advice to protect your rights
Also read: Five Reasons Why You Should Have Your Commercial Lease Reviewed
How Bennett Carroll Solicitors Can Help
At Bennett Carroll Solicitors, we advise both landlords and tenants across Queensland on:
✅ Lease reviews & negotiations
✅ Retail Shop Leases Act compliance
✅ Leasing dispute resolution
✅ Fit-out, renewal, and assignment advice
We work with businesses of all sizes, from first-time tenants to seasoned commercial landlords across Brisbane, Ipswich, the Gold Coast, Sunshine Coast and all across Queensland. Many matters can be handled entirely online or by phone, so wherever you are in Queensland, we can assist.
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Need help with a commercial lease in Queensland?
Whether you’re a landlord drafting terms or a tenant reviewing a new lease, getting legal advice early can save time, money, and stress.
Call Bennett Carroll Solicitors on 1300 334 566, Send us a message or start a live chat at the corner of this screen 24/7— we’re your Queensland commercial lease lawyers, ready to help.
