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May 17, 2016 at 1:19 am #994583Up::0
Hi Peeps
Understanding i have been absent of late, some say thankfully , i have had lots going on in the back end that has kept my hands tied a bit.. More will unfold in the coming weeks, although i need some quick assistance – for those in the know..
What is the difference between Commercial Lease and Retail Lease?
From past dealings i am led to believe that retail has a little more protection for tenant with set structures etc as well as some costs being burdened by landlord compared to commercial which is compared to the wild wild west and anything goes..My thoughts are very very generic, lol, although i would love to know if anyone can identify some key differences including advantages and disadvantages for me please?? Please..
Thanks in advance
JasonJason Ramage | Lucas Arthur Pty Ltd | E: hello@lucasarthur.net.au P: 61 3 8324 0344 M: 61 412 244 888May 17, 2016 at 7:51 am #1197289Up::0Hi Jason,
I can’t help directly.
But with leases, the devil is always in the detail. Seek to identify anything of note that may happen in the future and get it in the lease so that it is covered. Perhaps call some long time retailers and ask them what has gone wrong with their current or previous leases.
May 17, 2016 at 10:26 pm #1197290Up::0Hey Paul
Thanks mate, did a bit of extra searching and got a couple answers… Still a lilt the vague although, from what I could gather, retail leading protects tenant a little extra and has channels to go through in case of ‘issues’ whereas commercial is really open slather and generally favours the landlord – meaning in ways of what is covered and not and for that matter what can even be asked for in the lease
Also, with retail lease I think the burden of costs to draw up the lease falls to the landlord as opposed to commercial being the applicant/tenant.
With retail, landlord is obligated to provide (not sure correct term) a document outlining ALL outgoings in summary whereas on commercial they can just say ‘it’s about $xxx”…
Just be nice to have someone that has done this exercise and been through it to maybe highlight what I have overlooked
All the best mate and thanks again
JJason Ramage | Lucas Arthur Pty Ltd | E: hello@lucasarthur.net.au P: 61 3 8324 0344 M: 61 412 244 888July 20, 2016 at 6:38 am #1197292Up::0Hi Jason, the difference between a retail lease and a commercial lease is that a retail lease falls under the Retail Leases Act. Yes, the regulations for each state are different, however for example in Victoria some benefits you’d get for being under the Retail Leases Act is that the Landlord can’t pass on their legal fees in relation to the preparation and negotiation of the Lease. Also they can’t on charge Land tax or costs associated with a Sinking Fund Levy. There are some cons to being under the Act, such as, a Landlord can withhold consent to any sub lease or licence of the property at their absolute discretion. Normally you’d push for the lease to ensure the Landlord must not unreasonably withhold consent to any sub lease or licence. To determine whether your lease falls under the Act will depend on your particular use of the Premises. Basically if you sell or hire goods or services from your premises you will fall under the Act. However there are other things that apply i.e. the term of the lease. Any lease under a year will not apply to the Act etc. All in all there is more protection given to a Tenant under the Retail leases Act. Hope that helps.
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