Commercial leasing

Commercial lease review in Victoria.

Office, industrial and warehouse leases sit outside the Retail Leases Act, which means there is no statutory safety net, whatever the document says is what you are bound by. CMK Legal reviews commercial leases for tenants and landlords across Melbourne, quantifies the total occupancy cost and identifies the clauses that will cost you money at review, renewal or exit.

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Solicitor-reviewed

Reviewed by a commercial lawyer, not a checklist.

Fast turnaround

Advice back in 2 to 3 business days for standard leases.

Fixed fee, quoted first

Fixed fee agreed up front.

Victorian leasing law

Acting for tenants and landlords across Victoria.

What a commercial lease review covers.

We work through the lease, any agreement to lease, the plan and schedule, special conditions, the guarantee and any side deed for works or incentives.

The focus is on the commercial mechanics: term and option structure, rent review method and ratchet clauses, outgoings and net versus gross treatment, land tax recovery, repair and structural obligations, insurance and indemnity, default and termination triggers, assignment and subletting, and end-of-term make-good and removal of fit-out.

For landlords, we also check that the lease protects income, secures the guarantee properly and does not create unintended obligations for building services or capital works.

Unlike retail leases, commercial leases can pass on land tax, allow ratchet rent reviews and impose full repair obligations. If nobody negotiates those clauses out, they stand.

Why commercial leases need close attention.

There is no statutory protection to fall back on

Outside the Retail Leases Act, the parties are free to agree almost anything. Land tax, capital works contributions, ratchet clauses and full repairing covenants are all enforceable if you sign them.

Rent review mechanics drive the whole term

Fixed annual increases compounding on a ten-year term, or a market review with a ratchet floor, can change your total commitment materially. We model the method, not just the starting rent.

Repair and structure obligations get expensive

A poorly drafted repair clause can leave a tenant paying for roof, slab or plant replacement. We push those back to the landlord or cap them by reference to a condition report taken at handover.

Default and security terms decide your risk

Bank guarantee amounts, top-up obligations, cross-default with related entities and personal guarantees all determine what is at stake if trading turns. These are negotiable far more often than tenants assume.

Get a commercial lease reviewed when.

  • You are taking office, warehouse or industrial premises
  • The landlord's agent has issued heads of agreement
  • The lease is for five years or more, or has options
  • You are asked to contribute to capital works or services
  • There is an incentive, rent-free period or fit-out deal
  • You are a landlord issuing a lease to a new tenant
  • A bank guarantee or director guarantee is required
  • Your business needs a permit or specific permitted use

Heads of agreement are frequently signed before anyone has read the lease. They are not always non-binding, send them to us before signing, and we will tell you what you have committed to and what is still open.

How a commercial lease review works.

  1. 01

    Documents and context

    You send the lease pack and tell us about the business, the fit-out and how long you expect to stay.

  2. 02

    Fixed fee quoted

    We confirm scope and cost before we begin the review.

  3. 03

    Clause-by-clause review

    Commercial terms, risk allocation and exit mechanics are assessed against your plans for the premises.

  4. 04

    Plain-English rundown

    Issues rated by importance, with drafting suggestions for the points worth changing.

  5. 05

    Discussion and priorities

    A call to decide what to negotiate and what to accept, based on your leverage.

  6. 06

    Negotiation and execution

    We settle amendments with the other side, then attend to signing, guarantees and registration.

Fixed-fee commercial lease review.

Standard commercial lease reviews are quoted as a fixed fee including advice and a call. Longer institutional leases, agreements to lease with works schedules, and negotiation of amendments are scoped separately once we have seen the documents.

Request a fixed-fee quote

FAQs

Commercial lease review FAQs.

Still unsure? Call us on (03) 9008 7224 and speak to a lawyer, not a call centre.

What is the difference between a retail and commercial lease?
A retail lease is caught by the Retail Leases Act 2003 (Vic) and comes with statutory protections around outgoings, land tax, disclosure and minimum five-year terms. A commercial lease of office or industrial premises generally is not, so the document governs. Which category you fall into is a legal question, not just a description of the premises.
Can a landlord charge me land tax?
In a commercial lease, yes, if the lease says so. In a retail lease, no. It is one of the first clauses we check because it can add materially to annual occupancy cost.
What is a ratchet clause?
A clause preventing rent from falling at a market review, so the rent can only stay the same or increase. They are prohibited in retail leases but common in commercial ones. We routinely ask for them to be removed or softened.
Should I register the lease?
Leases over three years, including option periods in some circumstances, are usually registered on title. Registration protects the tenant if the property is sold or the landlord's mortgagee takes possession, so for longer terms it is worth doing.
Who pays for repairs to plant and equipment?
It depends entirely on drafting. Well-negotiated leases put structural and capital items on the landlord and limit the tenant to maintenance and servicing, often with a condition report attached so the required standard is documented.
Do you act for landlords too?
Yes. We prepare and review leases for property owners across Melbourne, including guarantee, security and default terms designed to protect rental income.

Related services.

Retail lease review

A lawyer's review of your retail lease and disclosure statement before you commit.

Learn more

Lease negotiation

We negotiate rent, incentives, options and repair clauses with the other side.

Learn more

Lease renewal & option exercise

Exercise your option on time and on the right terms, or renegotiate a new term.

Learn more

Have your commercial lease reviewed.

Start online or book a consultation with a CMK Legal commercial leasing solicitor in Richmond, Melbourne.

Start onlineBook a consultation