What should a commercial property lease cover?
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.
Once a lease has been signed, it is legally binding. Therefore it is important to take advice early in the process. Talk to our friendly team today about your commercial lease agreement – with expert knowledge across the commercial sector, we can ensure your rights and interests as a tenant or landlord are protected.