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A commercial lease template for retail, office, and industrial tenancies — suitable for small landlords and tenants.
A commercial lease is the contract between a landlord and a business tenant renting premises for commercial use — office, retail, industrial, or mixed. Commercial leases are governed by common law and (for retail tenancies) by state retail lease legislation, not by residential tenancy law. The stakes are higher: outgoings, make-good obligations, and permitted use clauses can have five- and six-figure consequences.
Common situations where this document is the right tool for the job.
You are leasing office space for your business.
A landlord is renting retail premises to a shop or cafe.
A warehouse or industrial unit is being leased to a business tenant.
You are renewing an existing commercial lease.
A sub-lease or assignment is being documented.
A fit-out period or rent-free period needs to be formalised.
The essential provisions every commercial lease agreement should include.
Landlord and tenant legal names and ABNs, premises address, size (sqm), and any common areas included.
Initial term (often 3, 5, or 10 years) and option terms the tenant may exercise to extend. Exercise notice periods for options.
Base rent, payment frequency (monthly in advance is standard), and rent-review mechanism — fixed percentage increase, CPI, market review, or combination.
Which outgoings the tenant pays in addition to rent (council rates, water rates, land tax if applicable, owners corporation fees, insurance, building management fees). Gross leases include outgoings in rent; net leases pass them through.
Specific business use(s) permitted. This matters for council compliance, insurance, and protection against the landlord letting a similar business next door.
What state the premises must be returned in at end of lease. Make-good can be tens of thousands of dollars — negotiate carefully. Rent-free fit-out periods should be documented.
Tenant's public liability, property, and business interruption insurance requirements. Cross-indemnities for negligence.
When the tenant can assign the lease or sublet, and what landlord approval is required. Most commercial leases require landlord consent, not to be unreasonably withheld.
If the premises are covered by state retail lease legislation (e.g. Retail Leases Act 1994 (NSW), Retail Leases Act 2003 (Vic)), statutory protections override the contract (disclosure statement, ratchet clause prohibition, minimum term in some cases).
What constitutes default (rent arrears, breach of covenants) and the landlord's remedies (re-entry, distraint, damages). Tenant's termination rights are typically limited.
Outgoings, make-good, rent reviews, and permitted use are all negotiable — and all have substantial financial consequences. A template forces every material point to be agreed up front.
State retail lease legislation imposes mandatory disclosure obligations on landlords. A signed lease (plus disclosure statement) is the foundation of that compliance.
Rent-review mechanisms can include uncapped market reviews that rise substantially. Reading and negotiating the rent-review clause before signing often saves a tenant more than any other single decision.
Business lenders and investors routinely ask to see commercial leases. Well-documented lease terms support a business's valuation and make refinancing simpler.
Yes. A commercial lease agreement is an ordinary commercial contract under Australian law. Electronic signatures on it are recognised as valid under the Electronic Transactions Act 1999 (Cth)and the state-based equivalents (e.g. Electronic Transactions Act 2000 (NSW), Electronic Transactions (Victoria) Act 2000, Electronic Transactions (Queensland) Act 2001).
Under section 10 of the Commonwealth Act, an electronic signature is valid if it identifies the signer, indicates their intent to be bound, and uses a method as reliable as appropriate in the circumstances. SignBolt captures timestamp, IP address, and signer identity — which meets this "reliable method" test for ordinary commercial signing.
Certain document types are excluded from electronic-signing provisions in some states (wills, statutory declarations in some contexts, land titles documents). A commercial lease agreement is not in those excluded categories — electronic signature is valid.
This page is general information, not legal advice. For high-value or unusual arrangements, obtain a one-off review from a qualified Australian legal practitioner.
Questions we get about the Commercial Lease Agreement template.
No. A retail lease is a commercial lease covered by state retail lease legislation, which imposes additional tenant protections (mandatory disclosure, prohibition on ratchet clauses, minimum 5-year term in some states). A general commercial lease (office, industrial) is governed by contract and common law without those specific retail protections. Check your state's definition of 'retail premises' to see whether retail lease law applies.
Outgoings vary but commonly include council rates, water and sewerage rates, land tax, owners corporation (strata) levies, building insurance, building management fees, and sometimes utilities metered to the whole building. For retail leases, some outgoings (e.g. land tax in some states) cannot legally be passed through to tenants. Net-lease outgoings can add 20-40% to base rent.
Yes. Commercial leases are covered by the Electronic Transactions Act 1999 (Cth) and the state equivalents. Electronic signatures are valid. Some commercial leases are registered with the state land titles office (for leases over 3 years in most states) — registered leases have additional formality requirements but electronic signing is still permitted.
Make-good requires the tenant to return the premises to a specified condition at end of lease — often 'as at commencement' or 'fresh paint, clean carpets, original configuration'. Make-good can cost tens of thousands of dollars. Negotiate for 'like-for-like' or cash settlement alternatives, and document the initial condition with photos so there is no dispute about the baseline.
Rent-review frequency is set by the lease. Most commercial leases review annually. Review mechanisms include fixed percentage (e.g. 3% per year), CPI-linked, market review (landlord proposes, tenant can challenge via determination), or combinations. Market reviews are the riskiest for tenants and should be capped or limited to once every 5 years.
Only if the lease permits, and usually only with landlord consent. Most leases allow assignment with landlord consent not to be unreasonably withheld. Subletting is often more restricted. When selling a business, the ability to assign the lease is usually a key deal point — make sure the lease supports it.
The landlord can terminate the lease for arrears, re-enter the premises, and sue for the rent shortfall for the remainder of the term (mitigated by their duty to try to re-let). Personal guarantees signed by directors survive company insolvency — so guarantors remain liable. Negotiate the scope of any personal guarantee carefully before signing.
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