Gymnasium and small bar operators should be aware of a significant change to retail leases, which occurred on 1 January 2023.
Do you lease commercial space to operate a:
Or are you a landlord leasing commercial space to one of these businesses?
If so, you should read on…
From 1 January 2023, these businesses were added to the list of ‘retail shops’ which are covered by the Retail Leases Act 1994 (NSW), regardless of whether they are located in a shopping centre.
All new leases entered into after 1 January 2023 must be retail leases. This means tenants are given greater protections, such as:
For existing leases, tenants can use the mandatory dispute resolution regime, which requires parties to attempt mediation before going to court.
Commercial leasing is one of Sarah Mehlert specialty areas. At Donovan Oates Hannaford our property team can help you negotiate the often complex process of drafting or reviewing commercial lease agreements to protect your interests. We can advise on the requirements under the Retail Leases Act and interpret the lease terms as they apply to issues arising during the tenancy and disputes between landlord and tenant.
Contact our business law team for more information.