Many businesses, especially the startups, prefer to rent business space instead of buying since it requires less capital. A commercial lease is a contract between the landlord and the business; it is an important document that consists of all the terms and conditions. This is a legal document that offers legal protection hence should ideally be verified by an expert first. This article explains the importance of a commercial lease, vital do’s & don’ts, and a crucial role in the commercial lease lawyer and the importance of a Formal Commercial Lease
A commercial lease is a legal document that consists of the terms agreed upon by the business and the landlord. This is a legally binding document where all involved have the opportunity to include their specific terms and conditions. These documents will protect the business and limit the legal obligations as per the document’s terms. It will mention all facts about the lease, including the duration and cost thus avoiding any issues that may arise due to ambiguity about renting a property. Without a lease, the landlord can demand to vacate, even without warning, which can adversely affect business activities. It can also help a business’s rightful claim recover damages to the property or damages due to breach of the lease conditions. It defines the nature of the work being conducted at premises, thus helps avoid future conflicts.
Do’s & Don’ts of Commercial Leasing
Commercial property leasing is a significant overhead for a business, and a large number of businesses tend to lease space for their business. It is good practice to shop around while hunting for a good deal since this is an excellent way to make an informed decision based on all the facts. Do not forget to check the percentage increase of rent to ensure the rent is manageable. Some of the other factors that require your scrutiny include the length of the contract, rental cost, lock in the term, etc. A business mustn’t fail to negotiate the rent amount, request a rent-free period and consider the building repairs and maintenance. It is a good practice to consult a commercial leasing lawyer regarding this.
Important Statistics & Facts
- The rental, hiring, and real estate services industry’s value was 54.3 Billion AUD as of September 2020.
- Commercial building activity in Australia is valued at 47.3 Billon AUD.
- There is more flexibility in commercial leasing due to the COVID-19 pandemic worldwide; especially since businesses in Australia demand shorter leases and more transparency in the clauses.
- The Corona Virus Pandemic has also increased the landlords’ pressure to provide more incentives; it has also led to a rise in subleasing.
- As of June 2020, 69,249 sqm space was available, which is expected to rise as we come to the end of the year.
- Approximately 700,000 sqm of new commercial space is expected to become available in the period between 2020 – 2023.
Commercial Leasing Lawyer to the Rescue
Leasing a commercial property is no simple task, although a significant pressure commercial property owners face is the worldwide pandemic. It is advisable to seek expert lawyers’ advice for matters like drafting the lease and reviewing a lease. For example, legal assistance from a Byron Bay conveyancer will ensure you are in the green.
A professional lawyer will also assist in several other matters like GST, the liability of land tax, include limitations on rent increase, insurance, and dispute resolution. They can help with several other issues like the transfers of business service by Byron Bay.