What is a Retail Shop Lease?
John Gallagher from Argon Law discusses the advantages and benefits of a Retail Shop Lease. By determining whether or not a lease is covered by the QLD Retail Shops Lease Act, a Tenant can ensure that their premises are regulated by and receive the benefits and advantages of the act.
Always ensure you seek professional advice for your specific circumstances, the above is intended to be general in nature.
The Retail Shop Leases Act regulates leases of retail premises in Queensland and provides certain advantages to tenants that aren’t available under normal commercial lease.
Those advantages include a strict disclosure regime by which landlords must provide accurate details of the outgoings payable by the tenant under the lease and protection from having to pay the landlord’s legal costs for preparing the lease.
What qualifies as a retail shop lease can be surprising.
The first thing to consider is the usage allowed by the lease. Are the premises to be used wholly or predominantly for a retail purpose? The legislation includes a comprehensive list of retail usages. If your usage is on that list then, the act applies to your lease.
But even if your usage is not on that list, the act can still apply to your lease if the premises are part of a retail shopping centre.
The definition of what constitutes a retail shopping centre is complex, but what it can mean is that leases for office use or for other purposes which you wouldn’t normally consider to be retail, can be regulated by the act and give tenants advantages they wouldn’t otherwise have.
Don’t assume that the Retail Shop Leases Act doesn’t apply to your lease. The consequence of a mistake in that regard can be expensive particularly for a landlord.
If you have any queries about this or any other aspect of commercial or retail leasing then please contact us on 07 5443 9988 or[email protected].
Argon Law is a Sunshine Coast law firm based in Maroochydore. We are commercial and business lawyers and property lawyers and are eager to assist you in any way we can.
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