When leasing business premises in Queensland, understanding whether you’re entering a Commercial Lease or a Retail Lease is crucial. Although the terms are often confused, they fall under different laws and come with distinct rights and responsibilities for both landlords and tenants.
🔹 What Is the Difference?
A Commercial Lease applies to non-retail premises such as offices, warehouses, or industrial sites and is governed by the Property Law Act 1974 (Qld). It offers greater flexibility, allowing both parties to negotiate rent reviews, outgoings, and other terms.
A Retail Lease, on the other hand, applies to businesses selling goods or services directly to the public — such as shops, salons, or cafés. These leases are covered by the Retail Shop Leases Act 1994 (Qld), which provides stronger protections for tenants, particularly small businesses.
🔹 Key Legal Differences
- Disclosure Requirements: Retail landlords must provide a Lessor Disclosure Statement before the lease is signed, outlining rent, outgoings, and key terms.
- Rent Reviews: Retail Leases limit rent reviews to once per year and prohibit ratchet clauses, while Commercial Leases allow more flexibility.
- Outgoings: Retail tenants cannot be charged for certain costs, like land tax, whereas commercial tenants may be liable.
- Legal Fees: Retail landlords cannot pass lease preparation costs to tenants, unlike in Commercial Leases.
🔹 Why It Matters
Understanding your lease type helps you avoid unexpected costs, unfair clauses, or compliance issues. Retail tenants benefit from additional statutory protections, while commercial tenants must carefully negotiate terms to ensure a fair and transparent agreement.
🔹 Expert Legal Support
Whether you’re a landlord or tenant, seeking legal advice before signing any lease is essential. Aylward Game Solicitors, with offices in Brisbane, Gold Coast, and Sunshine Coast, specialise in Commercial and Retail Lease law across Queensland. Their experienced team, led by Mark Game, can assist in reviewing, drafting, and negotiating leases to protect your business interests.
📞 Contact Aylward Game Solicitors today at 07 3236 0001 or visit Aylward Game Solicitors for expert guidance on leasing commercial property in Queensland.
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