Retail Leases
Sunshine Coast
Understanding retail leases can be complex, but securing the right lease is vital for your business’s success – whether you’re a retail landlord or tenant. Bradley & Bray is here to provide clear, comprehensive legal advice regarding retail shop leases.
Secure Your Retail Lease with Expert Legal Assistance
A retail lease, also known as a retail shop lease, is designated for businesses operating within retail shopping centres or premises primarily engaged in retail activities. It is regulated by the Retail Shop Leases Act 1994 (RSL Act) in Queensland, which provides a comprehensive legal framework to ensure a fair balance of rights and obligations between retail landlords and tenants.
Before entering into a retail lease, it is imperative for both parties to thoroughly understand and comply with the legal stipulations outlined in the Act. Whether you’re a tenant or landlord, you must review all legal requirements, restrictions, and entitlements associated with the lease to avoid disputes and other issues in the future. The lease becomes legally binding upon execution by both the landlord and tenant.
Understanding and applying the relevant laws for retail leases can be challenging, particularly for small businesses that offer or secure prime retail locations. At Bradley & Bray, we assist landlords and tenants across Queensland. We’re here to ensure you are fully informed and protected against the uncertainties of retail leasing.
Preparing for Your Retail Lease
As a landlord or a tenant, you must undertake thorough research and ensure all aspects of the lease agreement are clearly understood and beneficial to both parties. Bradley & Bray is here to provide expert legal guidance and help you navigate these retail lease-related preparations effectively:
● Identifying Retail Shopping Centres
The Act also defines what constitutes a retail shopping centre. This definition includes premises predominantly used for retail, owned by a single entity, and located within a single or adjoining building. Understanding whether the leased property is considered a retail shopping centre is essential for both lessors and lessees.
● Providing and Receiving Disclosure Statements
Both landlords and tenants must provide disclosure statements before finalising a retail lease. The lessor’s disclosure statement should outline essential lease terms, premises details, outgoings, and other associated costs—and it must be given to the lessee at least seven days before the lease start date. Should the lessor’s disclosure statement contain inaccuracies or omissions, or if it fails to be delivered within the required seven-day period, the tenant is granted a six-month window from the lease start date to submit a written notice for lease termination. On the other hand, a tenant or lessee’s disclosure statement involves detailing business circumstances and possibly including a Financial Advice Report and a legal advice report.
● Defining a Retail Business
The Act specifies what constitutes a ‘Retail Business’ in Queensland, impacting whether a lease is classified as retail. Our commercial lawyers on the Sunshine Coast will help check Schedule 1 of the Retail Shop Leases Regulation 2016 in Queensland to verify if your business fits within these legal definitions, as factors like the size of the lettable area and the type of building can influence this classification.
● Understanding Legal Protections and Benefits
Retail leases offer tenants certain protections under the Retail Shop Leases Act (QLD) 1994, which are not typically available in commercial leases. These include prohibitions against landlords charging land tax to tenants, restrictions on rent review mechanisms, limitations on the proportion of outgoings payable by tenants, and the landlord’s inability to pass on the costs of drafting the lease document. If you’re a prospective retail tenant, be familiar with these provisions to protect your rights fully.
If You’re a Tenant, Here Are More Considerations for Your Retail Lease Agreement
When evaluating a retail lease, it’s essential to tailor your considerations to your business’s unique needs and circumstances. Bradley & Bray can guide you through these critical aspects to ensure your lease aligns with your business objectives:
Lease Duration for New Businesses: The lease term is significant, especially for start-ups or new ventures. While landlords may favour longer lease periods, ensure that the lease duration matches your business plan and growth projections.
Understanding Rental Increases: Rental escalation clauses vary, and you must fully understand the method used to calculate any increases in rent as per your lessor’s terms. This way, you can plan your finances more accurately over the lease term.
Property Improvements and Modifications: The lease agreement should clearly outline the parameters for making any improvements or modifications to the retail space. This includes who is authorised to make changes, who bears the cost, and the condition in which the property must be returned at the lease’s conclusion.
Inclusive Use of Additional Spaces: Confirm that the lease specifies access to all areas necessary for your business operations, such as bathrooms, parking & common areas. This helps avoid future disputes or limitations on your use of the premises.
Signage and Brand Visibility: Ensure the lease does not impose restrictive conditions on placing signs because that could impact your marketing efforts and business visibility.
We’re Committed to Ensure You Are Fully Informed & Prepared
Bradley & Bray is committed to ensuring that both landlords and tenants are fully informed and prepared before entering into a retail lease. Our team provides comprehensive legal services to help you understand your obligations, rights, and the steps necessary to secure a lease that aligns with your business goals. Contact us today to ensure your retail lease sets a solid foundation for your business’s future.
FAQs on Retail Leases
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A retail lease governs the rental of premises designated for the sale of goods, typically situated within shopping centres and safeguarded by specific retail legislation at the state level. Such agreements support retail business operations by ensuring both the lessor and lessee are protected by relevant laws.
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While retail and commercial leases may seem similar, key distinctions exist between them. A commercial lease applies to premises used for non-retail business activities, such as offices, warehouses, or industrial spaces. In contrast, a retail lease is specific to premises used for retail sales, making it subject to additional regulations and protections under retail leasing laws.
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The Retail Shop Leases Act 1994 (RSL Act) in Queensland outlines the legal framework governing retail shop leases within the state. Both retail landlords and tenants must understand their rights and responsibilities under the RSL Act to ensure compliance and protect their interests in retail leasing arrangements.
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Before entering a retail shop lease, landlords are required to furnish tenants with a draft lease and a lessor disclosure statement at least seven days in advance. This disclosure statement is crucial, offering detailed insights into the lease terms, rent, review mechanisms, outgoings, trading hours, and more, enabling tenants to make informed decisions about their potential retail space.
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Yes, tenants are advised to seek independent legal advice before finalising a retail shop lease. This step is a prudent measure to ensure you fully understand your lease commitments and the broader implications of the Act. Engaging with a solicitor or business lawyer on the Sunshine Coast to review your retail lease documents will also help safeguard your business interests and reduce the risk of disputes in the future.
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Meet our Business & Commercial Team
Jacob Corbett
Jacob is a Director of Bradley & Bray Lawyers, specialising in Business, Commercial and Real Estate Law.
Jacob provides strategic advice to his vast range of clients, and has been called upon to assist his clients with complex matters such as Business Sales and Acquisitions, Corporations Law advices, Commercial and Industrial Leasing, Commercial Property Sales and Acquisitions, Real Estate transactions, Development advices and Subdivisions, Security and Loan Agreements, Body Corporate advice and establishment, acquisitions utilising SMSF and Bare Trust entities, Put & Call Agreements, Transfers pursuant to Family Law Orders and Agreements and General commercial agreements.
He is also trusted by his clients to assist in acquisition and sale negotiations, and acquisition due diligence for Business, Commercial, Residential and Leasing matters.
Director | Lawyer
Bridie Edwards
Bridie Edwards is an Associate Lawyer in the Commercial Law team at Bradley & Bray. Joining the firm in 2019 as a law clerk; she was admitted as a Lawyer in 2020 and in July of 2023, was promoted to Associate Director.
As an integral member of our leadership team, Bridie assists Director Jacob Corbett, Partner Peter Griffin, and Practice Manager Debbie Davis in managing the firm. Her role involves overseeing project management and internal processes to ensure our clients receive the highest possible quality of service. She also plays an active role as a mentor to her younger colleagues.
Associate Director | Lawyer
Melissa Harris
Melissa is a well known and experienced industry professional, working exclusively in residential and commercial conveyancing.
With over 30 years’ in the Legal industry, Melissa’s experience and people-skills make her an invaluable asset to any Property team. Melissa is known for her ability to remain calm and rational amidst the high-stress world of conveyancing.
Her driven and technical approach to the ever-changing landscape of conveyancing has gained her the respect of her colleagues and peers throughout both the legal community, and within the walls of our firm.
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Connor Pattinson
Connor Pattinson, an aspiring lawyer and recent law graduate, joined Bradley & Bray in October 2023, coming to the team through our recent acquisition, Law In Business. He is currently in his fourth year of the Bachelor of Laws, with graduation anticipated in November. Connor’s also on track to complete his Practical Legal Training in January, aiming to apply for admission as a lawyer before June 2024. He joined Law In Business in 2019 as a legal/personal assistant, where he's been involved in all aspects of Business & Commercial law.
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Contact Us Today
Bradley & Bray is a law firm on the Sunshine Coast which offers legal guidance to retail leasing across Queensland. Whether you’re a retail landlord or a tenant, our team of commercial lease lawyers are here to ensure your lease agreement matches your business needs, protects your interests and complies with relevant legislation.
Contact us today for tailored advice on your retail lease.
We’re here to help.
Level 1, 15 Ann Street, Nambour Qld 4560
107 Maud Street, Maroochydore Qld 4558
PO Box 243, Nambour Qld 4560