What Should a Commercial Property Lease Cover?
We act for landlords and tenants when they want to enter into a commercial property lease. We are able to draft new commercial lease agreements, or review those that have been presented to you to sign, ensuring your best interests are represented.
When your commercial lease comes for renewal, we are able to review the renewal documentation and draft any necessary variations to meet your changing needs.
A commercial lease should record how the property can be used, and the obligations of both the landlords and the tenants.
This includes who’s responsible for payment of outgoings such as insurance, rates and cleaning; obligations on each party in relation to maintaining the property; insurance provisions and rent review procedures. It also needs to include provisions for resolution of disputes arising between tenants and landlords, including for non-payment of rent.
The Christchurch and Kaikoura earthquakes have taught us all that standard commercial leases did not always provide the flexibility that tenants require if a building is destroyed in a natural disaster or is unreachable behind a cordon. We ensure catastrophic events are considered in your lease.
Sub-leasing and assignment
If you, as the tenant, decide to sell your business, it will be necessary to assign the lease to the new business owner. We can prepare the Deed of Assignment of Lease and liaise with all parties to ensure a smooth transition to the new owner.
Sub-leasing extra space is another important consideration for both landlords and tenants, and we can help you reach an agreement that provides security and flexibility for both sides.
What if the lease is for a retail premises?
If the property is a retail premises, it may be on the Property Council Retail Lease Agreement, which has different obligations than the more common Auckland District Law Society. The Property Council Lease tends to be harder on the tenant. We understand the most important areas to negotiate in these leases.
Our Commercial Property Lawyers
Once a lease has been signed, it is legally binding. Therefore it is important to take advice early in the process. If you feel you could use some specialist advice, don’t hesitate to contact the Property Team.
