Commercial Lease Disputes & Negotiation Help

Rent review clauses determine how and when rent increases — common methods include fixed percentage increases, CPI indexation, and market review, which can result in large jumps. Outgoings are the landlord's property costs passed to the tenant, including council rates, insurance, and maintenance; the lease and applicable Retail Leases Act define what is and is not recoverable. Make good obligations require the tenant to return the premises to a specified condition at lease end — these clauses vary enormously and a poorly worded one can result in a six-figure liability on vacation. Legal review before signing is the most effective way to manage these risks.

Most Australian states have Retail Leases Acts that apply to retail shops in shopping centres and high-street precincts. Key protections typically include a minimum five-year lease term (NSW, Vic, Qld), mandatory disclosure statements before signing, restrictions on recoverable outgoings (land tax is excluded in most states), limits on ratchet rent review clauses, and access to low-cost tribunal dispute resolution. The precise protections vary — New South Wales, Victoria, Queensland, South Australia, Western Australia, and the ACT each have distinct legislation, and some states have higher turnover thresholds that take leases out of the Act.

Make good obligations are defined by your specific lease and can range from simply cleaning the premises to full strip-out and reinstatement to original condition. The critical distinction is between restoring what you installed (fitout) and ordinary wear and tear, which is typically the landlord's responsibility. Disputes often arise over the scope of works, the standard required, and whether the landlord's claimed cost is reasonable. Some states' Retail Leases Acts give the tribunal jurisdiction over make good disputes, and a lawyer can review your obligations before you begin vacating works.

Yes — each state's retail leases legislation establishes a low-cost tribunal pathway for disputes. In NSW, the NSW Civil and Administrative Tribunal (NCAT) handles retail tenancy disputes. In Victoria, VCAT has dedicated retail tenancy jurisdiction. In Queensland, the Queensland Civil and Administrative Tribunal (QCAT) handles retail shop lease disputes. Mediation is typically the first step, with tribunal hearing available if mediation fails. Strict time limits apply for lodging applications, so early legal advice is important.

Commercial leases typically grant the landlord access rights for inspection, repairs, and showing the property to prospective tenants or purchasers, subject to reasonable notice — usually 24 to 48 hours. The Retail Leases Acts in some states impose additional restrictions and notice requirements. Repeated or disruptive access without proper notice can constitute a breach of the covenant of quiet enjoyment, which is an implied term in most commercial leases. A lawyer can advise whether the landlord's access pattern crosses a legal line.

Lease incentives are common in commercial leasing and can take the form of rent-free periods, fitout contributions, reduced rent for a set term, or a combination. The form and value of incentives depend on market conditions, the landlord's vacancy position, and the length and quality of the proposed lease. Critically, incentives must be clearly documented — whether in the lease or a separate incentive deed — because verbal arrangements are rarely enforceable. A commercial leasing lawyer can advise on what is achievable in your market and ensure the documentation protects your position.