Home – New Forums Starting your journey Solicitor for reviewing commercial lease Reply To: Solicitor for reviewing commercial lease

  • Total posts: 1

This is very valuable information, currently I am looking for a place/shop in the shopping center but in the Heads of Agreement only gave us GROSS lease not NET lease. And sales agent said, they can’t tell us what is outgoings cost in the center. Can you please advice me how to resolve this matter if this come across to you.

Klublok, post: 123038 wrote:
That’s about right for a commercial (office) lease if there is going to be amendments/negotiations with the landlord. If you don’t have much bargaining power or you are up against a landlord who is not too keen, then it would be better to go to another building.

However if you have a keen landlord who is prepared to negotiate, then it is worthwhile having your lawyer to negotiate for you. Some of the key issues to watch out for are:

1. outgoings – obviously you have to pay for those, but sometimes the landlord’s “standard” lease is not clear on who pays for air conditioning repairs (usually you are only liable for repairs – be careful about the definition), sometimes sneak in obligations to pay for structural damages, or paying the landlord’s expenses in enforcing the lease against you etc. So check the definition of outgoings

2. market review – usually there is a dispute resolution clause if you don’t agree with the result of the rent review. Make sure this is a fair one

3. insurance – make sure you don’t have to insure any structural parts of the premises

4. any requirements for redecoration, especially for a longer lease?

5. make good provisions – what are you up for?

6. what happens if the building is not fit for use (after flood, fire etc), do you still have to pay rent, can the landlord relocate you etc?