- 1Retail shop leases in Queensland are regulated by the Retail Shop Leases Act 1994 (Qld), which gives tenants specific protections.
- 2Rent reviews, outgoings, make-good and assignment clauses are where the real costs and risks sit.
- 3Negotiate before signing — once the lease is registered and the fit-out is paid for, your leverage is limited.
Is it a retail shop lease?
The first question is whether the Retail Shop Leases Act 1994 (Qld) applies. It generally covers premises used wholly or mainly for a retail business listed in the regulations, including many shops in shopping centres and strip retail. Where the Act applies, it imposes disclosure obligations on the landlord, limits certain clauses and provides a dispute resolution process.
Offices, warehouses and industrial premises generally fall outside the Act as commercial leases. The protections are then largely whatever the lease itself says — which makes careful review even more important.
The terms that matter most
- ✓Term and options: how long the lease runs and whether you have options to renew, and the process and deadlines for exercising them.
- ✓Rent and rent reviews: fixed increases, CPI or market reviews, and whether a review can reduce rent as well as increase it.
- ✓Outgoings: which of the landlord's costs you pay, how they are estimated and reconciled, and any caps.
- ✓Permitted use, trading hours and any exclusivity for your business in a centre.
- ✓Repairs, maintenance and make-good: what you must return the premises to at the end of the lease.
- ✓Assignment and subletting: whether you can sell your business with the lease, and on what conditions.
- ✓Security: bank guarantees, bonds and personal guarantees.
For landlords
Landlords need a lease that protects their asset and income while complying with the law. For retail premises that includes giving the required disclosure documents on time, as failures can give the tenant rights later in the tenancy.
We prepare and negotiate leases, manage disclosure, and advise on renewals, assignments, arrears and termination — with a view to keeping good tenants and resolving problems before they become disputes.
When problems arise
Common lease disputes involve outgoings reconciliations, repairs, make-good at the end of the lease, and the exercise of options. For retail shop leases, disputes go through the process set out in the Act, which typically begins with mediation.
Acting early matters. Many disputes turn on whether a notice was given correctly and on time, so getting advice as soon as an issue appears protects your position.
Common questions
Can a lease be negotiated, or is it take it or leave it?+
Most leases can be negotiated, particularly on rent reviews, outgoings, incentives, make-good and assignment. The best time to negotiate is before you sign an offer to lease or heads of agreement.
What happens to my lease if I sell my business?+
The lease must be assigned to the buyer, which requires the landlord's consent on the conditions set out in the lease. Assignment should be planned early in any business sale.
Sources & further reading
- ↗Queensland Legislation — Retail Shop Leases Act 1994 (Qld)
- ↗Queensland Small Business Commissioner — retail tenancy guidance and dispute resolution
This guide is general information about Queensland and Australian law and is not legal advice. Laws change and every situation is different — speak with us about your specific circumstances before acting.
