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ARTICLE · 10 AUGUST 2026

Agreement For Lease And Development Of Purpose-built Facilities

Agreements for Lease (AFLs) are critical instruments in the delivery of purpose-built facilities, particularly in retail and commercial developments where tenant requirements shape the design and construction process. Unlike standard leasing arrangements, AFLs sit at the intersection of development risk, construction delivery and leasing outcomes.

AustraliaReal Estate and Construction

Agreements for Lease (AFLs) are critical instruments in the delivery of purpose-built facilities, particularly in retail and commercial developments where tenant requirements shape the design and construction process. Unlike standard leasing arrangements, AFLs sit at the intersection of development risk, construction delivery and leasing outcomes.

This article outlines the key provisions found in AFLs, examines the allocation of risk between landlord and tenant, and highlights common issues relating to extensions of time, sunset dates, liquidated damages, and financier involvement.

Typical Agreement for Lease provisions

A well-structured AFL establishes the commercial and legal framework for the delivery of the premises and the subsequent lease. Key provisions typically include:

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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.

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