Signing a commercial lease without a lawyer is signing a document you probably don’t understand. Most tenants focus on the rent and lease term, scan the rest, and assume the agent or landlord has written something fair. They haven’t. A commercial lease is written to protect the landlord. If you don’t review it before you sign, you’re locked into obligations you didn’t see coming, rent increases tied to market reviews, outgoings that double your monthly costs, make-good bills that wipe out your exit, or guarantees that put your home on the line. That’s why searching for a commercial lease lawyer near me is one of the smartest steps you can take before putting pen to paper.
A commercial lease lawyer in Sydney CBD reviews the lease before you commit, explains what each clause actually means, flags the risks, and negotiates changes that protect you. The lease terms sheet the agent sends is not the final contract, it’s the starting point. A lawyer can request amendments to rent reviews, outgoings caps, termination rights, and subletting restrictions before the lease is drafted. Once you’ve signed, those terms are locked in for three, five, or ten years.
Key Takeaways
- A commercial lease is written to protect the landlord, not the tenant.
- Review and negotiate the lease terms sheet before the lease is drafted.
- Outgoings, rent reviews and make-good clauses can cost more than the base rent.
- Personal guarantees put your home and assets at risk if the business fails.
- Fixed-fee legal review costs less than one month’s unexpected outgoings bill.
What a Commercial Lease Lawyer Near Me Checks
A lease review starts with the lease terms sheet, the summary the agent sends before the lease is drafted. This is where you negotiate. Once the full lease is prepared, most landlords won’t change major terms. A lawyer reviews the terms sheet and advises whether it meets your requirements, then requests amendments before the lease is written.
The lawyer checks the commencing rent and whether it matches the agreed figure. Rent is quoted as a gross annual figure plus GST, but you need to know the monthly amount and whether it includes outgoings. If it doesn’t, the landlord will send you a bill for council rates, water, building insurance, strata levies, management fees, marketing contributions, and a share of common-area costs. Outgoings can add significantly to your base rent, depending on the building and location.
Rent reviews are the next risk. Most commercial leases include annual increases. Fixed percentage increases are predictable. CPI increases track inflation. Market reviews let the landlord reset the rent to the current market rate, which in high-demand precincts can mean a substantial jump. A lawyer negotiates a cap on market reviews or pushes for CPI instead.
The lease term and options to renew determine how long you’re committed. A five-year lease with two five-year options sounds like fifteen years of security, but the options are yours to exercise, not automatic. If you don’t give notice within the required timeframe, often six months before expiry, you lose the option. The landlord can then offer the premises to someone else or increase the rent before you renew. A lawyer checks the notice period and makes sure you understand when to exercise the option.
Subletting and assignment clauses control whether you can bring in another tenant or transfer the lease when you sell the business. Most leases say you need the landlord’s consent, and consent cannot be unreasonably withheld. But “unreasonable” is not defined, so landlords refuse for reasons you didn’t expect, your subtenant’s business type, their financials, or simply because they want to re-lease at a higher rent. A lawyer negotiates clearer grounds for consent or a right to assign without landlord approval in certain circumstances. For retail leases covered by the Retail Leases Act 1994 (NSW), the landlord’s consent requirements are stricter and disclosure obligations apply, so the lawyer checks whether your lease is retail or commercial and what protections you’re entitled to.
The Clauses That Cost Tenants the Most
Make-good obligations are the end-of-lease cost most tenants don’t see coming. The lease requires you to return the premises to their original condition, or to a specified standard, when you leave. That means removing your fit-out, repainting, repairing damage, replacing carpets, and sometimes reinstating walls, ceilings, and air-conditioning. Make-good bills can be substantial for fitted retail or office premises. A lawyer reviews the make-good clause and negotiates to limit your obligations, for example, excluding structural changes the landlord approved, or capping the reinstatement work to fair wear and tear.
Personal guarantees are the clause that puts your home at risk. Most landlords require the business owner or director to sign a guarantee, making them personally liable for the rent and the lease obligations if the business fails. That means if the business goes under and you can’t pay the rent, the landlord can sue you personally and force the sale of your house to recover the debt. A lawyer negotiates to limit the guarantee, or to remove it entirely if the business financials are strong enough.
Insurance obligations often require the tenant to take out public liability, plate glass, contents, and loss-of-income insurance, and to name the landlord as an interested party. If you don’t take out the insurance and something happens, the landlord can claim you breached the lease and terminate it. A lawyer checks whether the insurance requirements are reasonable, whether the landlord is double-insuring at your expense, and whether you’re required to insure the landlord’s building as well as your fit-out.
Dispute resolution clauses set out how disagreements are handled. Most leases require mediation or expert determination before either party can sue. That sounds fair, but expert determination can be costly and the expert’s decision is usually binding. A lawyer checks whether the clause is balanced, whether you can still go to court if mediation fails, and whether the landlord has unfair termination rights that bypass dispute resolution entirely.
What to Do Before You Commit to a Lease
Don’t sign the lease terms sheet until a lawyer has reviewed it. Most agents send the terms sheet and push for a quick signature, saying it’s “subject to lease” and not binding. That’s true, but once you’ve agreed to the terms, the landlord will draft a lease that matches them, and if you try to change major terms later, they’ll walk away or demand a higher rent. Review the terms sheet first, negotiate the key clauses, then let the landlord draft the lease.
Ask for the landlord’s outgoings history for the past two years. This shows you what the actual outgoings costs are, not what the agent estimates. Outgoings can be the largest variable cost in your lease, and if the landlord won’t disclose the history, that’s a red flag. A lawyer can request the outgoings and check whether the reconciliation process is fair, whether you’re charged a fair share based on your floor area, whether the landlord is recovering costs they shouldn’t, and whether there’s a cap on annual increases.
Check whether the lease is covered by the Retail Leases Act. If you’re leasing premises in a retail shopping centre in Sydney CBD, or premises used wholly or predominantly for retail purposes, the Act applies and gives you protections the landlord must comply with. The landlord must provide a disclosure statement at least seven days before you sign the lease. The statement lists the outgoings, rent reviews, and key lease terms in plain language. If the landlord doesn’t provide it, or provides it late, you can terminate the lease within six months. A lawyer checks whether the Act applies, whether the disclosure statement is complete, and whether the lease complies with the Act’s minimum standards.
Run title, planning and strata searches before you commit. The title search shows who owns the property, whether there are mortgages or caveats registered, and whether the landlord has the right to lease it to you. The planning search shows the zoning, permitted uses, and any development applications or restrictions that could affect your business. The strata search (for strata premises) shows the levies, by-laws, building defects, and whether the owners corporation has approved your intended use. A lawyer or conveyancer can order these searches and explain what they mean. If the planning certificate shows a proposed road widening that will take half your car park, or the strata by-laws prohibit food use and you’re opening a cafe, you need to know before you sign.
| Lease Term | What It Means | What to Negotiate |
|---|---|---|
| Gross rent vs net rent | Gross includes outgoings; net does not | Clarify what is included and cap outgoings increases |
| Rent review | How rent increases each year | Cap market reviews or change to CPI or fixed % |
| Make good | Restore premises to original condition at end of lease | Limit to fair wear and tear or exclude approved works |
| Personal guarantee | Director personally liable for lease obligations | Cap the amount or remove if financials support it |
| Assignment | Transfer lease to buyer when you sell business | Clarify consent grounds and fees |
How Sarah Walsh Reviews and Negotiates Your Lease
Sarah Walsh Conveyancing & Leasing acts for tenants in Sydney CBD and across Sydney and NSW on commercial lease negotiation and review. Sarah is a property lawyer with over a decade of experience in commercial and retail leasing, and she knows what landlords will negotiate and what they won’t. She works on a fixed fee, so you know the cost upfront.
The process starts with a conversation about what you need from the lease, your business type, fit-out plans, growth plans, and budget. Sarah reviews the lease terms sheet and advises whether the terms meet your requirements. She flags the risks, rent review clauses that could double your rent, outgoings that aren’t capped, make-good obligations that are too broad, or personal guarantees that put your assets at risk. She then requests amendments to the terms sheet before the lease is drafted.
Once the landlord’s solicitor prepares the full lease, Sarah reviews it and checks whether it matches the agreed terms sheet, whether it complies with the Retail Leases Act if applicable, and whether any new clauses have been added. She negotiates amendments with the landlord’s lawyer, marks up the lease, and sends you a report explaining what each clause means and what the risks are. When the lease is finalised, she facilitates signing and registration with NSW Land Registry Services, and gives you a completion report once you’ve taken occupancy.
For retail leases, Sarah checks whether the landlord has provided a compliant disclosure statement, whether the lease meets the Act’s minimum standards, and whether the rent review, outgoings and termination clauses are fair. For commercial property transactions where the tenant is also buying the building or business, she handles the conveyancing and the lease in one engagement, so you don’t need two lawyers.
Sarah’s view is that a lease should be reviewed and understood before it is signed, to avoid future conflict and expense. That means negotiating the terms before you commit, not after. If you’ve already signed and a dispute has arisen, she also advises on commercial lease disputes and your options to resolve them. Call 0493 291 572, email sarah@sarahwalshconveyancing.com.au, or book an initial chat online.
Frequently Asked Questions
How much are legal fees for a commercial lease?
Legal fees for a commercial lease review vary depending on the complexity, negotiation required, and scope of work. Fixed fees are common for defined tasks. Confirm whether the fee includes GST, searches, correspondence with the landlord’s lawyer, and how many amendment rounds are covered.
I need a property lawyer in Sydney. What should I look for?
Look for a lawyer who specialises in property law and regularly works on commercial leasing, not a generalist. Check how long they’ve practised, whether they work on a fixed fee so you know the cost upfront, and whether they act for tenants as well as landlords. Ask how quickly they can review the lease and whether they’ll negotiate directly with the landlord’s solicitor. A property lawyer who also does conveyancing can handle the property purchase and the lease in one engagement.
What is commercial conveyancing?
Commercial conveyancing is the legal process of buying or selling a commercial property, office, retail, warehouse, or industrial premises. It includes reviewing the contract, advising on the terms, conducting title and planning searches, handling exchange and settlement, and registering the transfer with Land Registry Services. When a commercial property is leased, the tenant’s lawyer often reviews the lease as part of the purchase transaction to ensure the lease terms are acceptable and won’t affect the buyer’s intended use.
What is the best way to get out of a commercial lease?
The best way depends on your lease terms. If your lease allows early termination, you can give notice and vacate in accordance with the break clause. If it doesn’t, your options are negotiating a surrender with the landlord, assigning the lease to a new tenant with the landlord’s consent, or subletting the premises if the lease permits it. Walking away without agreement is a breach, and the landlord can sue you for the rent and costs for the remaining term. A lawyer reviews your lease and advises on your options.
Which lawyers provide fixed-fee real estate compliance?
Property lawyers who specialise in leasing and conveyancing often work on a fixed-fee basis for defined tasks such as lease review, contract review, or settlement. Fixed fees give you certainty on the cost upfront and avoid open-ended hourly billing. Check whether the fixed fee includes searches, landlord correspondence, negotiation, and how many amendment rounds are covered. Sarah Walsh Conveyancing & Leasing works on a fixed fee for lease review, lease negotiation, and conveyancing across Sydney and NSW.
Signing a commercial lease without legal advice locks you into obligations you may not understand. The lease terms sheet is where you negotiate, and once the lease is signed, those terms are binding for years. A commercial lease lawyer reviews the terms before you commit, flags the risks, and negotiates changes that protect your business and your assets. The cost of a lease review is a small fraction of what an unfair lease can cost you over its term.
Have a lease or contract to sign?
Sarah Walsh reviews, drafts and negotiates commercial and retail leases for tenants and landlords, and handles conveyancing for buyers and sellers across Sydney, on a fixed fee. Get it checked before you sign.