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A commercial lease is also known as a commercial tenancy agreement. It is a legally binding contract between the business operating from a property (the tenant or lessee) and the person or entity that owns it (the landlord or lessor).
At A.L.F. Lawyers, we act for either the Landlord or Tenant across every stage of a commercial or retail lease. From the first letter of offer, through drafting, negotiation and disclosure, to lease-term issues, assignment, renewal and disputes.
The first question in any lease is not what the terms say; it is which law applies. Retail shop leases in Queensland are separately regulated under the Retail Shop Leases Act 1994 (Qld), which imposes disclosure obligations, restricts what a landlord can recover from a tenant and sets rules around rent review, options and assignment that do not apply to an ordinary commercial lease.
We identify which regime applies to your premises before advising on anything else, because getting that wrong changes what rights either party actually has.
Queensland leasing law is not static. The general law of leases regarding covenants, assignment, notices to remedy breach and relief against forfeiture are governed by the Property Law Act 2023 (Qld), which came into effect on 1 August 2025 and replaced the former Property Law Act 1974 (Qld). Retail shop leases carry an additional layer of statutory protection under the Retail Shop Leases Act 1994 (Qld).
Whether your lease is a standard commercial lease governed by the Property Law Act or a retail shop lease carrying disclosure and cost-recovery restrictions, we advise on the version of the Law that actually applies to your premises, not a generic template.
A commercial lease is a legally binding agreement granting a tenant exclusive possession of a property or part of one, for an agreed term in exchange for rent. It is a distinct legal instrument from a licence to occupy, which grants only a personal right to be on the premises, no exclusive possession, generally no registrable interest and materially less protection if the arrangement ends early.
Commercial leases may apply to vacant land, an entire building or part of a building or centre – offices, industrial sites, warehouses or sections of a larger commercial property.
Below are some of the basic aspects of a commercial lease agreement for Queensland commercial property which both landlord and tenant should consider:
The lease should clearly specify the commencement date, duration and any renewal periods.
The lease should state whether GST applies to rent and outgoings and whether it is to be inclusive or exclusive.
Where the tenant is a company, landlords frequently require personal guarantees from directors.
Requirements relating to signage should be agreed and clearly documented in the lease.
The lease should specify which outgoings the tenant pays and how they are calculated. For a retail shop lease, cost recovery is restricted by statute; not everything a landlord incurs can be passed on.
The lease should state one clear method for rent review - market, CPI or a fixed increase and the timing it applies from. Mixed or unclear review mechanics are a common source of dispute.
Some leases require the tenant to refurbish or redecorate the premises during the term or before handover at the expiry of the lease term. This should be scoped precisely, not left open-ended.
The lease should accurately describe the premises, including boundaries and any shared or common areas.
The lease should specify the form of security: bank guarantee, cash deposit and/or personal guarantee and the conditions for its release.
Some leases give the landlord the right to relocate the tenant within a centre or building during the term. Where retail shop leasing law applies, relocation and demolition rights carry compensation obligations.
The lease should clearly state who is responsible for electricity, water and other services to the premises.
Insurance requirements for both landlord and tenant should be directly stated, not left to be assumed.
The lease should set out what constitutes a default and the remedies available where a default occurs, including notice requirements before termination.
Parking entitlements and any associated costs or carparking regulations should be clearly documented in the lease.
Renewal options and their associated notice requirements should be clearly documented, including the deadline by which an option must be exercised.
Choosing the right tenant matters as much as the lease terms themselves. A letting agent will introduce interested tenants and assist with initial negotiations, but is not always positioned to assess whether a prospective tenant can sustain rent, outgoings and other obligations for the full term.
We help landlords look beyond the headline rent figure at the tenant’s business, its financial position and whether the space is genuinely suited to what they intend to trade.
For a standard commercial lease, the process generally runs as follows:
At A.L.F. Lawyers, we protect your assets and rental income streams. Our experienced team can help with property searches, disclosure documents, lease amendments, extensions, surrenders and recovering unpaid rent.
Having a commercial lawyer review your lease before you sign can help you understand and negotiate terms that protect your business. Talk to our experienced commercial lawyers as part of your due diligence.
A lease is a retail shop lease under the Retail Shop Leases Act 1994 (Qld) if the premises are 1,000 square metres or less and used for a listed retail business or if the premises sit within a shopping centre with five or more retail shops. Where the Act applies:
Whether the Act applies to your premises is a threshold question we check before advising on anything else; get it wrong and you either claim protections that do not exist or miss ones that do.
Chantal Bush is the Managing Director of A.L.F. Lawyers, bringing more than 17 years of experience across property law, conveyancing, family law, wills and estates, and commercial matters. Based on Brisbane’s northside in Strathpine, Chantal leads a firm built on a simple principle: we work for you because we care.
Over her career, Chantal has guided thousands of clients through some of the most significant moments of their lives, from buying or selling a home to navigating family separation, protecting their assets, and planning for the future. She is known for taking the time to genuinely understand each client’s situation, explaining the law in plain English, and offering clear, practical advice focused on the outcome that matters most to them.
Whether your matter is simple or complex, Chantal and her team are committed to providing compassionate, professional support at every step.
