Essential terms of a commercial lease

A commercial lease is a contract that details the rights and obligations of a tenant and landlord. These provisions include a series of necessary terms that are vital to the contract's formation and validity.

In the case of a retail lease, be aware that the Retail Leases Act will apply and different terms and provisions for your lease may apply and be required.

So, what are the necessary terms of a commercial lease? The following summary relates to New South Wales and some provisions may not apply or may operate differently in other states.

Parties

All parties should be clearly identified including the landlord, tenant and guarantors (if any).

Premises

The property and/or premises the tenant will occupy during the lease, must be clearly identified. Any fixtures are included in the property, and any common areas should be clearly indicated within the lease. Premises clauses are especially important for co-occupancy or shared spaces where a more specific