Retail Leasing

Shop, Café or Salon — Get the Lease Right Before You Sign or Hand Over the Keys.

  • Retail leases governed by the Retail Leases Act 1994 (NSW) — we know it inside out.
  • Acting for both landlords and tenants across NSW.
  • Disclosure statements, five-year terms, outgoings and rent reviews handled correctly.
  • Plain-English advice and fixed-fee pricing — no surprises.
  • A property lawyer on your file, not just a leasing agent.
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Retail lease lawyer advising a cafe owner on a shop lease in NSW

Leases that come with their own rulebook

Retail Leasing Is Not Just Commercial Leasing

If you are leasing a shop, café, salon, takeaway or a tenancy in a shopping centre, you are almost certainly signing a retail lease — and retail leases in New South Wales are governed by their own statute, the Retail Leases Act 1994.

That Act exists to protect tenants, but it also imposes strict obligations on landlords: disclosure statements that must be given on time, a minimum five-year term unless it is properly waived, tight rules on outgoings and rent reviews, and a mandatory dispute-resolution pathway. Get the process wrong and a landlord can find outgoings irrecoverable or the tenant able to terminate; a tenant can be locked into terms and costs they never understood.

At Corporate Legal, every retail lease is handled by a qualified property lawyer who reviews the deal against the Act before you commit — whether you are the landlord granting the lease or the tenant taking it. We draft, review, negotiate and register, and we explain every clause in plain English.

Corporate Legal provides legal services only — not financial, taxation, leasing-agency or business-valuation advice. Whether a particular premises or rent suits your business is a decision for you and your accountant or adviser.
Been handed a retail lease or disclosure statement? Let’s review it first

The Retail Leases Act 1994 (NSW)

The Protections — and Traps — Built Into Every Retail Lease

Because the Act overrides much of what a lease can say, both sides need to know how it works. These are the provisions we check on every retail matter:

Disclosure Statement

The landlord must give the tenant a disclosure statement at least 7 days before the lease is entered into. If it is late, incomplete or misleading, the tenant may be able to terminate within the first six months — a serious risk for landlords, and real leverage for tenants.

Minimum Five-Year Term

The Act guarantees a total term (including options) of at least five years, unless the tenant obtains a lawyer’s or conveyancer’s section 16(3) certificate waiving it. We prepare or advise on these certificates so a shorter term is valid.

Outgoings & Estimates

A landlord can only recover outgoings that were properly disclosed and estimated. Undisclosed outgoings are generally not recoverable. We make sure the schedule is complete for landlords and fair for tenants.

Rent Reviews

Only one review method can apply at each review, and “ratchet” clauses that stop rent ever falling are void. We draft compliant review mechanisms — fixed, CPI or market — and check the ones you are being offered.

No Key Money

The Act prohibits a landlord charging “key money” or a premium simply for granting or renewing a retail lease. We identify disguised premiums so neither side falls foul of the rules.

Relocation, Demolition & Compensation

The Act sets minimum standards for relocation and demolition clauses and for compensation where a landlord disrupts the business. We make sure these clauses meet the Act — and are used fairly.

Retail lease or disclosure statement in hand? Send it over before anyone signs.

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Who we help

Retail Landlords and Tenants of Every Kind

Hospitality & Food

Cafés, restaurants, takeaways, bakeries and bars — where fit-out, grease traps, trading hours and make-good clauses need close attention.

  • Fit-out & make-good terms
  • Permitted use & trading hours
  • Incentives & rent-free periods

Health, Beauty & Services

Hair and nail salons, spas, clinics, gyms and personal-service businesses — typically smaller tenancies where the Act’s protections matter most.

  • Five-year term & option advice
  • Outgoings you can actually afford
  • Assignment when you sell the business

Shopping-Centre Tenancies & Landlords

Tenants taking space in Westfield, Stockland and strip centres — and the landlords and owners who grant those leases and manage the centre.

  • Turnover rent & promotion levies
  • Relocation & demolition clauses
  • Disclosure & compliance for landlords

Why it matters

What Careful Retail Leasing Protects You From

01

An Invalid Disclosure Statement

For landlords, a late or defective statement can hand the tenant a right to terminate and a compensation claim. For tenants, it can be your way out of a lease that no longer works.

02

Being Locked Into the Wrong Term

The five-year minimum, options to renew and any section 16(3) waiver all have to be handled correctly — or you commit to far longer, or far shorter, than you intended.

03

Runaway Outgoings

Undisclosed or uncapped outgoings, management fees and land tax can quietly turn a workable rent into an unaffordable one. We check what can and can’t be passed on.

04

Rent-Review Surprises

Compounding fixed increases, market reviews with no cap and void ratchet clauses catch tenants out at review time and expose landlords to challenge.

05

Make-Good & Fit-Out Disputes

Vague make-good and fit-out obligations are the most common cause of a fight at the end of a retail lease. We define them clearly at the start.

06

Getting Stuck When You Sell

If assignment and options aren’t handled properly, a tenant can’t sell the business and a landlord can’t control who takes over. We keep the exit clean.

These risks are cheapest to fix before signing — not after.

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What we do

Retail Lease Services for Both Sides of the Deal

Whether you are granting a lease or taking one, we handle the whole process — and we only ever act for one party on a given lease.

For Landlords (Lessors)

Grant a compliant, protective retail lease and avoid the traps that make outgoings irrecoverable or hand the tenant an early exit.

  • Preparing the lease and disclosure statement
  • Heads of agreement review
  • Ensuring compliance with the Retail Leases Act
  • Drafting compliant rent-review and outgoings clauses
  • Negotiating incentives, guarantees and security
  • Assignment, renewal and options
  • Registration of the lease
  • Advice on relocation and demolition clauses

For Tenants (Lessees)

Know exactly what you are committing to before you sign — and negotiate the terms that protect your business and your bond.

  • Reviewing the lease and disclosure statement
  • Plain-English report on your obligations
  • Checking outgoings, rent reviews and the term
  • Advising on and preparing section 16(3) certificates
  • Negotiating rent-free periods and fit-out incentives
  • Make-good, bank guarantee and personal-guarantee advice
  • Options to renew and assignment when you sell
  • Support if a retail tenancy dispute arises

Tell us which side you’re on — we’ll take it from the heads of agreement.

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How we work

How Our Retail Leasing Service Works

01

Consultation

A free 15-minute consult to confirm whether the Act applies, which side you’re on, your timeframe and our fixed fee.

02

Heads of Agreement

We review (or help settle) the heads of agreement so the key commercial terms are right before the formal lease is drawn.

03

Disclosure & Draft Lease

Landlords: we prepare the disclosure statement and lease. Tenants: we review both and report on every material term.

04

Negotiation

We negotiate rent reviews, outgoings, incentives, make-good, guarantees and options — then agree the final form.

05

Signing & Certificates

We manage execution, any section 16(3) certificate, guarantees and the security deposit or bank guarantee.

06

Registration & Handover

Where required, we register the lease and confirm commencement, so both parties start on a clean, documented footing.

Ready to start? Book your free 15-minute consultation.

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Why Choose Corporate Legal for Your Retail Lease

Retail Leases Act Specialists

We work with the Retail Leases Act 1994 every week — disclosure, five-year terms, outgoings, reviews and registration are second nature.

A Lawyer, Not Just an Agent

A qualified property lawyer runs your file, so if a term needs negotiating or a dispute emerges, you’re already covered.

Both Sides of the Table

We act for landlords and tenants, so we know exactly what the other side will push for — and how to protect your position.

Fixed-Fee & Transparent

A clear, upfront fee agreed before we start, so you can budget with confidence and there are no billing surprises.

Plain-English Advice

We translate the lease and the Act into language you can act on, so you always know what you’re signing.

Backed by a Litigation Team

If a retail tenancy dispute arises, our Commercial Litigation team can step in — same firm, no handover, no lost time.

Lease your premises with a firm that gets retail leasing right.

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Part of a Complete Property & Leasing Service

Retail leasing rarely stands alone. If you are buying the premises as well as leasing it, selling the business behind the lease, or facing a dispute over rent, make-good or outgoings, we can support you end-to-end — from the contract through to the lease and beyond.

Explore: Leasing (overview) · Commercial Leasing · Commercial Conveyancing · Property Law · Commercial Litigation

Retail Leasing FAQs

How do I know if my lease is a “retail” lease?
Broadly, a lease is a retail lease if the premises are used for a business listed in Schedule 1 of the Retail Leases Act 1994 (most shops and personal-service businesses), or the premises are a shop in a retail shopping centre. There are some exclusions — for example larger premises and certain uses. Because the classification changes which rules apply, we confirm it as the very first step.
What is a disclosure statement and when must it be given?
A disclosure statement is a document the landlord must give the tenant setting out key details of the lease — rent, term, outgoings, fit-out and centre information. It must be given at least seven days before the lease is entered into. If it is not given on time, is incomplete, or is misleading, the tenant may be able to terminate the lease within the first six months and, in some cases, claim compensation.
Does a retail lease have to be for five years?
The Act guarantees a minimum term (including any options) of five years, so the tenant has security of tenure. A shorter term is only valid if the tenant obtains a certificate from a lawyer or licensed conveyancer under section 16(3) confirming they have been advised and choose to waive the minimum. We prepare and advise on these certificates.
What outgoings can a landlord pass on to a tenant?
A landlord can generally only recover outgoings that were disclosed and estimated in the disclosure statement, such as council and water rates, land tax (subject to limits), insurance and centre management costs. Outgoings that were not properly disclosed are usually not recoverable. We make sure the schedule is complete for landlords and fair — and capped where possible — for tenants.
Can the landlord increase the rent however they like?
No. The lease must specify a single method of rent review for each review — commonly fixed percentage, CPI or current market rent — and only one method can apply at a time. “Ratchet” clauses that prevent the rent ever going down on a market review are void. We draft compliant review clauses and check the ones you are offered.
Do retail leases have to be registered?
A retail lease for a term (including options) of more than three years, or where the parties agree to register, should be registered on title at NSW Land Registry Services. Registration protects the tenant’s interest against later dealings. We handle the registration process as part of the service.
What happens if there’s a dispute?
Retail tenancy disputes in NSW are usually referred first to mediation through the NSW Small Business Commissioner, and, if unresolved, to the NSW Civil and Administrative Tribunal (NCAT). We can advise and represent you through that process, and where a matter is better suited to court, our Commercial Litigation team can act.
Can you act for me if I’m selling or buying the business behind the lease?
Yes. When a business is sold, the retail lease usually has to be assigned to the buyer, which involves landlord consent, an updated disclosure statement and often a fresh guarantee. We handle lease assignments on both sides and coordinate with the business sale contract so nothing falls through the gap.

Still have questions about your retail lease?

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Signing a Retail Lease? Start With a Review

Whether you are a landlord granting a shop lease or a tenant taking one, the safest first step is the same: have a property lawyer who knows the Retail Leases Act 1994 check the deal before you sign. Corporate Legal delivers fixed-fee retail leasing advice for landlords and tenants across NSW — clear, compliant and commercial.

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