For a commercial property owner, finding the right commercial property goes beyond simply finding spaces that fit their specific commercial needs. In doing so, they must enter into a legally binding commercial property agreement that will protect them and bring them success in their future endeavours.
Whether you are trying to launch your very first storefront or have now decided to expand operations to a new office, it is essential to know the ins and outs of property and commercial lease agreements.
This guide covers everything one should know about commercial leasing, from major terms and possible pitfalls to the need to hire a solicitor specialising in commercial property.
A commercial property agreement describes terms relating to the leasing or occupancy of a commercial space. These highly negotiated, flexible agreements differ from residential leases in respect to discussions concerning rent, term, use of the property, and maintenance responsibilities.
Commercial leases can be very complicated; thus, it is prudent to consult with a professional commercial property solicitor to avoid any liability incurred from signing an unfavourable agreement.
Engaging a lawyer for commercial property early in the leasing process is important for many reasons:
Unless negotiated otherwise, commercial leases typically favour landlords. Without such a legal expert, you may be accepting terms that impose undue costs or restrictions on your business. Leasing and property management lawyers Perth are concentrated in these types of agreements and can assist in tailoring deals to meet your own specific goals.
There can be a multitude of clauses in a commercial lease. Here are some important ones every business owner should understand:
This clause defines how you will return the property at the end of the lease. It may include removing fittings, repainting, or repairing damages—costs that can add up quickly if not considered beforehand.
Outgoings generally refer to expenses that you may need to pay, like council rates, water usage, insurance, and repairs. The commercial property lawyers Perth will clarify which outgoings each party is liable for.
Most commercial lease agreements will contain a rent review clause. It can be based on CPI (Consumer Price Index), fixed increases in percentage, or market rent assessments. With the assistance of a commercial property solicitor, it would be possible to negotiate for fair review terms and prevent sudden spikes in rent.
This describes the activities or services offered from the premises. Take caution with vague or overly restrictive wording. A narrowly worded clause can hinder a business’s ability to pivot or expand services in the future.
Business is as specific as its leasing needs. For example, retailers may seek high pedestrian traffic, signage rights, and storage space, while a tech company might want security of Internet access and flexible office space.
The best property settlement lawyers Perth will ensure that your lease anticipates operational needs now, the current business model, and future growth plans. They will advocate for accommodating clauses, such as subleasing, exclusive use, or rent-free periods for setup.
Good commercial property agreements encourage the maintenance of healthy relationships between the landlord and tenant. Transparency, fairness of negotiations, and legal positions will eliminate the possibility of disputes in the future.
If disputes occur regarding repairs or rent increases, a well-drafted lease written by a commercial property solicitor can provide the basis for a good legal resolution.
A commercial lease is greater than a form; it’s a business move that has permanent implications on what, if, and when you do business. As an owner, you want to be very careful about securing the proper commercial property lease to protect your best interests and to give yourself an option.
Hiring the services of a skilled commercial property solicitor in commercial property will ensure that you receive legal clarification, sound commercial guidance, and a lease that protects your business interests. They can also inform you of regulatory issues that give your firm a better competitive edge. Make sure you’re doing more than just renting a space; you’re securing the future of your firm.