Negotiating a commercial lease

Posted, January 31st, 2019

You have just found an ideal location for your business. What do you need to cover? 

When you are negotiating a commercial lease agreement for your current or new commercial space, there are many items which should be covered.

Here are some of these lease terms included;

 Paying Rent

Rent and the annual increase in rent. Whether set on CPI or fixed figure increase. Can your business afford these rent increases? Length of the lease for your commercial property. i.e. how long year lease are you comfortable with? Is it within your landlords’ expectations? Do you have a rent-free period to move in and make any improvements? This is common when negotiating a commercial or retail lease terms.

Outgoings & Options

What are the outgoings or operating costs and specifically, how are they calculated? In addition, do you have any options to renew the lease when it expires? It would help if you had a reasonably good estimate from your business plan what length of lease fits into the plan. What would happen if this was too small down the track and you need to move into larger premises? On the other hand, what would happen if you found out you had too much of an area for your type of business? In addition, you may need to scale down or change location of your business? Could you easily sublease to someone else?

In conclusion, leasing real estate and negotiating a new lease can be very complicated. It can be a good idea that you have a good specialised commercial lease solicitor and an experienced commercial agent with a good knowledge of the market guiding you to ensure that you get the best possible deal for you.

Need an experienced commercial real estate agent to help you with your new lease? Yes? Feel free to contact Con Tastzidis on phone number 0403 118830 or email or through

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