Commercial Lease Lawyers Australia: Key Clauses Every Tenant Should Know

17 November 2025 · LawWise Australia

Get advice before you sign—small wording changes can save thousands.

• Overview
• Rent, reviews, and incentives
• Outgoings and hidden costs
• Fit-out, repairs, and make good
• Assignment, subletting, and change of control
• Term, options, and relocation
• Insurance, indemnities, and liability caps
• Defaults, termination, and disputes
• Tenant due-diligence checklist
• FAQs
• Next step

Overview

A commercial lease allocates risk between landlord and tenant. In 2025, Australian tenants face CPI or fixed rent reviews, rising outgoings, and strict make-good clauses. Early legal review improves incentives, caps exposure, and aligns the premises with your business model.

Rent, reviews, and incentives

• Base rent: confirm net vs gross. Check any market-rent reset.
• Rent reviews: fixed % or CPI; avoid compounding on top of market resets.
• Incentives: rent-free periods or fit-out contributions—tie to milestones, not time only.
• Security: bond or bank guarantee—seek release on assignment or after good conduct.

Outgoings and hidden costs

Outgoings include rates, insurance, management fees, and common-area costs. Ask for an annual budget, exclusions (capex, structural defects), and audit rights.

Know your cost drivers: reviews, outgoings, make good, assignment.

Fit-out, repairs, and make good

• Fit-out scope: drawings, approvals, base-building rules, landlord works.
• Repairs & maintenance: who handles HVAC, lifts, structure, and services.
• Make good: limit to fair wear-and-tear; prefer cash settlement or “leave as is” by agreement.

Negotiate make-good early and document the agreed condition.

Assignment, subletting, and change of control

Seek landlord consent standards that are not unreasonably withheld. For assignments, aim for release from future liability upon completion. Permit group restructures and partial subletting for growth.

Term, options, and relocation

• Term & options: calendar reminders for option notice windows; no defaults at exercise.
• Relocation: require equivalent premises, fit-out allowance, and moving costs covered.
• Early access: for fit-out on licence with insurance in place.

Insurance, indemnities, and liability caps

Confirm public liability levels, property and business interruption cover. Narrow indemnities to your negligence only and insert proportional liability and reasonable caps.

Defaults, termination, and disputes

• Cure periods before termination.
• Mediation before litigation; consider expert determination for market rent disputes.
• No “acceleration of rent” without mitigation and re-letting duties.

Tenant due-diligence checklist

• Use plan showing lettable area and services; confirm hours and access.
• Check permitted use, signage rights, parking, loading, and storage.
• Compare net effective rent across options, not just face rent.
• Document premises condition with photos before handover.
• Calendar option/renewal and market review windows.

Close only after the clauses match your operating model.

FAQs

Do retail leases follow different rules?

Yes. State retail lease laws add disclosure and protections. Always review the landlord’s disclosure statement.

Can I cap outgoings?

Often by negotiation. Seek exclusions for capital works and defects and add annual budgets.

What is a market review?

A reset to current market rent, usually at option. Negotiate floors/ceilings or hybrid formulas.

Next step

Contact LawWise Australia to review your heads of agreement and lease draft. We optimise incentives, cap exposure, and lock fair make-good and assignment terms before you commit.

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