Key Differences Between Retail and Commercial Leases
If you are leasing business premises in NSW, the commercial lease vs retail lease question matters a great deal, because the two are treated differently under the law. This article explains the differences.
What Is Retail Lease Law, and What Is a Retail Lease?
So what is a retail lease? Broadly, it is a lease of premises used for certain retail businesses — typically shops selling goods or services to the public, and premises in retail shopping centres. Retail leases in NSW are subject to specific legislation providing protections, particularly for tenants, who are often small businesses.
What is a commercial lease?
A commercial lease is a broader category covering offices, warehouses and industrial units outside the retail rules. It is governed largely by the lease terms and general contract and property law, with fewer of the specific statutory protections that apply to retail tenancies.
The key differences
In a commercial lease vs retail lease comparison, the main differences tend to be disclosure (retail leasing usually requires a disclosure statement before the lease), minimum tenant protections (retail legislation can override inconsistent lease terms), how costs and outgoings can be passed on, and dedicated dispute resolution processes for retail leases.
Frequently asked questions
What is the difference between a commercial lease and a retail lease?
A retail lease covers certain shops and retail premises and is subject to specific legislation with tenant protections and disclosure. A commercial lease covers other premises like offices and warehouses and relies mainly on the lease terms and general law.
What is a retail lease?
It is a lease of premises used for qualifying retail businesses or in retail shopping centres, regulated by retail leasing legislation designed to protect tenants.
How do I know if my lease is retail or commercial?
It depends on how the premises are used and other factors under the legislation. Because it affects your rights, confirm it with legal advice before signing.
Get your lease right with Leyden Legal
Whether you are a landlord or tenant, a well-drafted lease prevents costly disputes. Leyden Legal advises businesses and property owners across Tamworth, Manilla and the North West on retail and commercial leasing.
Contact Leyden Legal today for advice on your lease.
This article provides general information only and is not legal advice. Leasing obligations depend on your premises. Please seek tailored legal advice before acting.
