Negotiating a Lease on Commercial Premises

06-05-2022    |    Resource   |   Brent Jones

If you are business owner about to sign a lease on new premises, regardless of the nature or size of your business, you may be able to negotiate terms to better suit your needs.  A commercial lease is always drafted in favour of the landlord by their lawyer so by negotiating certain aspects you can ensure that the agreement not only accommodates your needs, but also offers more protection for your business moving forward.


What Can You Negotiate?

Some aspects of a lease are more negotiable than others.  For example, the most common terms to be negotiated include:

  • The period or length of the lease

Depending on your business, you may be able to negotiate a shorter-term lease, or an option to renew for a longer period.


  • The amount of rent to be paid

While landlords may be reluctant to negotiate on the dollar amount of rent, you may be able to negotiate on “incentives” such as rent-free periods at the beginning or end of your lease to reduce your overall costs.


  • Contribution to the cost of a fit-out

In some cases, you can negotiate with the landlord for them to make a contribution towards the cost of the fit-out, or a reduction in rent over a specified period while you make the improvements.


Whilst the items mentioned above are some of the most common, there are many other aspects of the lease that may be open to negotiation.  From rent reviews and outgoings through to options to renew and sub-letting, an experienced commercial property lawyer will be able to identify potential issues and help you to negotiate terms that are more favourable.


How can Lamrocks Help?

If you are looking for new premises for your business, contact Lamrocks’ experienced commercial lawyer Brent Jones on 02 4731 5688 for professional advice and watch out for our upcoming “In The Know” Video Series on commercial leasing in which Brent will provide further details on the topic.



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