Commercial leasing

Lease negotiation for tenants and landlords.

Almost every lease term is negotiable before signing, and most are not negotiable afterwards. CMK Legal negotiates leases on behalf of tenants and landlords across Melbourne, rent and incentives, options, outgoings, repair, security and exit, so the document you sign reflects the deal you actually agreed.

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Solicitor-reviewed

Negotiated by a lawyer who drafts these leases regularly.

Fast turnaround

First mark-up usually out within a few business days.

Fixed fee, quoted first

Fee scoped up front against the points in dispute.

Victorian leasing law

Experienced with Melbourne agents, landlords and institutions.

What lease negotiation involves.

Negotiation starts with knowing which points matter. We identify the clauses with real financial consequence for your position, rank them, and work out which are likely to move given the state of the market and the landlord's own constraints.

We then deal directly with the agent or the other side's solicitor: proposing drafting, exchanging marked-up versions and resolving the commercial gaps. You are kept in the loop on decisions but not dragged into the correspondence.

Typical wins include a longer option structure, a market review without a ratchet, an outgoings cap or exclusion, capped make-good, a documented incentive, a reduced or time-limited guarantee, and an assignment clause that lets you sell the business without the landlord holding it hostage.

Leverage is highest before heads of agreement are signed and falls sharply after. If an agent has sent you a term sheet, that is the moment to call us.

What good negotiation is worth.

The commercial deal gets written down properly

Agents agree things verbally that never reach the lease, rent-free periods, landlord works, signage rights, car spaces, exclusivity. If it is not in the document it does not exist, so we get it drafted in.

Occupancy cost is reduced over the whole term

A small improvement in the review mechanism, or an outgoings exclusion, compounds annually. Negotiation typically pays for itself several times over the life of a five-year lease.

Exit and flexibility are protected

Assignment on reasonable terms, an option that survives a minor breach, and capped make-good preserve your ability to sell, move or close without a fight.

The relationship stays intact

Negotiating through a solicitor keeps the exchange professional and depersonalised, which matters when you will be dealing with the same landlord for the next decade.

We can negotiate when.

  • You have heads of agreement or a draft lease in hand
  • The rent review or outgoings clause is unacceptable
  • You want a longer term or additional options
  • A personal guarantee has been demanded
  • Make-good is drafted as full reinstatement
  • The incentive is verbal or in an email only
  • You are a landlord wanting stronger security terms
  • Timing is tight and the landlord wants it signed

If the lease is already signed, negotiation is still possible at rent review, at option exercise, on assignment or when the landlord needs something from you. Those moments are the leverage points, and they are worth preparing for in advance.

How we negotiate a lease.

  1. 01

    Understand the deal

    We take your commercial objectives, how long you need, what you will spend on fit-out, what your exit looks like.

  2. 02

    Review and prioritise

    The lease is reviewed and the issues ranked into must-change, worth-asking and acceptable.

  3. 03

    Mark-up prepared

    We produce a tracked amendment set with drafting for each point rather than a list of complaints.

  4. 04

    Negotiation with the other side

    We deal with the agent or solicitor directly, resolving points in exchanges rather than in a standoff.

  5. 05

    Final terms confirmed

    You are given a short summary of what changed and what was conceded before anything is signed.

  6. 06

    Execution and registration

    Signing, guarantees, bank guarantee delivery and registration where required are attended to.

Fees for lease negotiation.

Negotiation is quoted after we have seen the lease and know how many points are genuinely in dispute. Most tenant negotiations are handled for a fixed fee covering the mark-up and the exchanges that follow; heavily contested or institutional leases are quoted on an estimate with a cap agreed in advance.

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FAQs

Lease negotiation FAQs.

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

Is it too late to negotiate once heads of agreement are signed?
Not always. Heads of agreement often leave the detailed lease terms open, and many are expressed as non-binding. But your leverage on rent and incentives is largely spent, so the earlier you involve us the better the outcome.
Will negotiating annoy the landlord and cost me the premises?
Rarely. Landlords and agents expect a tenant's solicitor to mark up a lease, it is normal practice. What creates friction is reopening agreed commercial terms late, which we avoid by dealing with the substantive points in one pass.
Which clauses are most worth fighting for?
Usually rent review method, outgoings definition and caps, repair and structural obligations, make-good, assignment rights, and the guarantee. Those five drive most of the money and most of the disputes.
Can you negotiate an incentive?
Yes, and just as importantly we document it. Rent-free periods and fit-out contributions should be recorded in the lease or a deed with clear payment triggers and reasonable clawback terms.
How long does negotiation take?
Typically one to three weeks depending on how responsive the other side is. Where a fit-out or handover date is driving the timetable, we work to that deadline.
Do you act for landlords in negotiation?
Yes. We regularly act for property owners protecting rental income, security and building obligations while keeping the deal commercially attractive to a good tenant.

Related services.

Retail lease review

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

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Commercial lease review

Office, industrial and warehouse leases reviewed for cost, risk and exit.

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Lease renewal & option exercise

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

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Get the lease terms you actually agreed.

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

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