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ARTICLE · 07 DECEMBER 2021

Understanding the fine print in a commercial lease agreement

Ivy Law Group
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COVID-19 put commercial leases in the spotlight as landlords and tenants grapple with the impact of multiple lockdowns.

AustraliaFinance and Banking
Geeti Chawla
Geeti Chawla
Angela Seeto
Angela Seeto
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The ongoing COVID-19 pandemic has put commercial leases in the spotlight as landlords and tenants grapple with the impact the multiple lockdowns have had on their businesses. It comes as no surprise that there has been an increase in commercial leasing disputes as a result. Whether you are a landlord or a tenant, it is now more important than ever to ensure that you understand the terms and conditions in a commercial lease and the potential impact to your business before signing on the dotted line. Here, we outline what you need to look out for in a commercial lease.

Entering into a commercial lease

A commercial lease is a legally binding agreement between a landlord (also known as the lessor) and a tenant (also known as the lessee) to rent a commercial property. In some cases, especially where the tenant is a company, the lease may involve the director(s) or some other persons to provide personal guarantee(s) (also known as the guarantor) on behalf of the tenant.

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