Three things to consider when taking out an office lease

CG
Coleman Greig Lawyers

Contributor

Coleman Greig is a leading law firm in Sydney, focusing on empowering clients through legal services and value-adding initiatives. With over 95 years of experience, we cater to a wide range of clients from individuals to multinational enterprises. Our flexible work environment and commitment to innovation ensure the best service for our clients. We integrate with the community and strive for excellence in all aspects of our work.
Offices leases are commercial leases, so both landlords and tenants must be aware of their rights and responsibilities.
Australia Real Estate and Construction

You may be moving from existing premises or considering entering into an office lease for the first time – what are some of the things that you should be aware of before putting pen to paper?

Offices leases are essentially commercial leases and it's important that landlords and tenants alike are on top of their respective rights and responsibilities. A previous blog discusses five basic tips when taking out a commercial lease. Keeping those tips in mind, here are some points to consider regarding an office lease:

No retail use is permitted

An office lease is classified as a commercial lease and as such, can't be used for retail purposes. It is important that both landlords and tenants examine the nature of the business and determine if the proposed use of the office space would actually fall under a retail use before entering into an office lease.

Please refer to one of our recent blogs for key differences between commercial and retail leases.

Cover everything

Make sure the lease accounts for everything within and reliant on the proposed lease such as make good, obligations during the term of the lease, what actions by the Landlord or Tenant will constitute default and how disputes will be dealt with. This will ensure that potential disagreements between landlord and tenant can be easily resolved.

Include a 'make good' clause

It's smart to include a 'make good' clause in the lease that outlines the parties' obligations and liabilities when the lease comes to an end. Make sure you conduct an inspection of the premises with the letting agent during the negotiation process, collect photographic evidence, and agree on the condition of the premises before the lease begins.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More