Commercial Lease Agreements: What Tenants & Landlords Need to Know Entering a commercial lease is a significant decision for both tenants and landlords. Understanding the key elements of your lease agreement can protect your investment and ensure smooth operations. Follow these five steps to get it right. 1. Understanding Lease Types Commercial leases in Australia typically include: Gross Lease: Landlord pays most outgoings. Net Lease: Tenant reimburses outgoings (rates, insurance). Percentage Lease: Rent linked to tenant’s turnover. 2. Key Clauses to Negotiate Lease Term & Options: Initial term plus renewal options. Rent Structure: Fixed, CPI-indexed or turnover-based reviews. Outgoings & Charges: Clear allocation for rates, insurance, maintenance. Fit-out & Alterations: Tenant improvements and make-good obligations. Assignment & Subletting: Conditions for transfer or sublease. 3. Rent Reviews & Outgoings Most le...