Commercial Leasing for Tenants
As a tenant, the lease you sign shapes your business’s costs, security, and flexibility for years. We help tenants understand exactly what they’re agreeing to before they commit, negotiate fairer terms, and avoid the traps that catch out unrepresented businesses. Our services for tenants include reviewing and explaining the lease in plain language, negotiating with the landlord or their agent, advising on personal guarantees and make-good obligations, and acting on lease renewals, assignments, and disputes.
Commercial Leasing for Landlords
As a landlord, your lease is the document that protects your investment and secures your rental income. We help landlords put in place well-drafted leases that comply with the law, protect the property, and minimise the risk of disputes. Our services for landlords include preparing leases and disclosure statements that comply with the Retail Leases Act where it applies, advising on appropriate security (such as bank guarantees and personal guarantees), drafting clear rent review and outgoings provisions, and acting on rent recovery, breaches, and end-of-lease disputes.
When a Leasing Dispute Arises
Even with a well-drafted lease, disputes sometimes happen, whether over rent, repairs, make-good, or a claimed breach. For retail leases, many disputes must first go through mediation via the NSW Small Business Commissioner before court proceedings can begin. We advise on your position, represent you in negotiations and mediation, and if the matter can’t be resolved, our commercial litigation team can act for you in the appropriate court or tribunal.
Why Choose Hills Solicitors
- Local knowledge since 1894: We understand the Hunter Valley commercial property market, local landlords and agents, and the practical realities of leasing in a regional centre.
- We act for both sides: Because we act for both tenants and landlords, we understand what fair, workable lease terms look like from both perspectives.
- A full-service firm: We handle leasing alongside business law, business sales, and litigation, so we can support you across every stage of your business.
- Clear, fixed-fee options: For many lease reviews we can offer a fixed fee, so you know the cost upfront.
Frequently asked questions about commercial and retail leasing
What is the difference between a retail lease and a commercial lease?
The distinction in NSW comes down to whether the Retail Leases Act 1994 applies. The Act generally applies to premises under 1,000 square metres used for a retail business listed in the Act (such as shops and many service businesses), giving tenants protections like a disclosure statement and a minimum five-year term. If the Act doesn’t apply (for example, offices, warehouses, or larger premises), it’s a general commercial lease with fewer statutory protections, where your rights depend on the negotiated terms.
Do I need a solicitor to review a commercial lease?
It’s strongly recommended. A commercial lease is a long-term, legally binding commitment often worth hundreds of thousands of dollars over its term. A solicitor identifies unfavourable terms (like personal guarantees and costly make-good obligations), explains your obligations, and negotiates fairer terms before you’re locked in. The cost of a review is small compared to the cost of a problem discovered later.
What is a make-good clause?
A make-good clause requires the tenant to return the premises to a specified condition at the end of the lease. Depending on the wording, this can range from simple cleaning through to stripping out fit-outs and restoring the premises to base building condition, which can be very expensive. It’s essential to understand your make-good obligations before signing, as they can create a significant unexpected cost at the end of the lease.
What is a disclosure statement?
Under the Retail Leases Act 1994, a landlord must give a retail tenant a disclosure statement at least seven days before the lease is entered into. It sets out key financial and practical details of the lease, including the rent, outgoings, term, and any other significant matters, so the tenant can make an informed decision. Failure to provide a proper disclosure statement can give the tenant certain rights, including in some cases the right to terminate.
Can I get out of a commercial lease early?
It depends on the terms of your lease. Some leases include a break clause allowing early termination in certain circumstances, but many don’t. Common options include assigning the lease to a new tenant (with the landlord’s consent), subletting, or negotiating a surrender with the landlord. Leaving without a proper exit can expose you to significant liability for the remaining rent, so it’s important to get advice before taking any action.
What is a personal guarantee in a lease?
A personal guarantee makes the individual directors of a tenant company personally responsible for the lease obligations. If the business can’t pay, the landlord can pursue the guarantor’s personal assets, including their home. Personal guarantees are common but negotiable. We advise tenants on the risk and, where possible, work to limit or remove them.
Does Hills Solicitors act for both tenants and landlords?
Yes. We act for both commercial and retail tenants and for landlords across Maitland and the Hunter Valley, including East Maitland, Rutherford, Thornton, Kurri Kurri, Cessnock, and the broader Newcastle region. Acting for both sides means we understand what fair and workable lease terms look like from every perspective.
Have Your Commercial Lease Reviewed Before You Sign
Whether you’re a tenant about to commit to premises or a landlord protecting your investment, the terms of your lease matter enormously. The best time to get advice is before you sign, when terms can still be negotiated, not after a problem has arisen.
Hills Solicitors has been advising Hunter Valley businesses and property owners on commercial and retail leasing since 1894. We’ll explain your lease in plain language, flag the risks, and negotiate the terms that protect you.
Book a consultation with our leasing team today, or call us on (02) 4933 5111. Check our FAQ page if you have any questions.
