Retail Leases in Victoria among other laws is governed by The Retail Leases Act 2003 and accompanying regulations that complement the Act. If you are entering into a lease, it is important that you are aware of the regulations. Choose someone who has experience in the field of commercial property leasing.
If you are thinking of leasing property to establish your new business you should consult a solicitor. Even when using a solicitor, you should make absolutely sure that you understand all the provisions of the lease – ask questions until everything is clear and you are certain about the details.
Leasing law is extremely complex. It is very important that you consult a solicitor to help you negotiate your lease.
Experience matters – Contact VICTORY LAW
1. What will be my level of competition in the shopping centre? Larger centres often have an over-supply of similar businesses. An accurate picture of your level of competition is necessary for survival.
2. Is there clear identification of the space I’m leasing and all the associated facilities?
You need clear identification of your leased area, parking and delivery facilities, and common areas like walkways. Ask for a site plan.
3. What are the centre’s core trading hours? This may sound obvious but make sure the trading hours match your business and if they don’t, ask if there is any room for negotiation.
4. When I’m fitting out the premises, will I have to conform to any fit out rules the centre may have? Fit outs are generally more restrictive for shopping centres. You need to know exactly what is required and what the cost will be.
5. Will I be required to contribute financially to the centre’s marketing and promotional activities? If the answer is yes, try to negotiate a reasonable figure. If the answer is no, make sure this is not a hidden addition to the rent.
6. Does the ownership have plans to redevelop or expand the centre, and could my business be impacted? You are entitled to know how the centre’s long term plans could affect your business; for example, relocation to a less desirable position.
Sources:
Retail Leases Act 2003
Retail Leases Regulations 2013
http://www.business.vic.gov.au