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Start your commercial lease online
For landlords and tenants of commercial and retail premises. Tell us about the lease and we will take it from there.
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Common questions
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A lease is a legally binding agreement between a landlord and a tenant granting the tenant exclusive possession of premises for a fixed term in exchange for rent. In Victoria, commercial and retail leases are governed by the Retail Leases Act 2003 (Vic) (for retail premises) and general contract and property law principles (for non-retail commercial premises). Before signing any lease, it is strongly recommended that you obtain independent legal advice from a commercial lease lawyer in Victoria. Our commercial lease checklist sets out what to check before you sign.
The Retail Leases Act 2003 (Vic) applies to leases of premises used wholly or predominantly for the retail sale or hire of goods, the retail provision of services, or a business type specified by the Minister. Section 4 of the Act defines retail premises. The Victorian Small Business Commission (VSBC) provides detailed guidance on what qualifies as retail premises in Victoria.
The Retail Leases Act 2003 (Vic) provides important protections for retail tenants in Victoria, including: a landlord cannot pass on legal costs for preparing the lease to the tenant (s 51); the term, including any options, must be at least five years unless the Victorian Small Business Commission issues a waiver certificate at the tenant’s request and the tenant gives the landlord a copy (s 21); and a landlord must consent to a tenant’s request for assignment of the lease except in limited circumstances (s 60). Disputes generally go to the Victorian Small Business Commission for mediation first and can then be decided by VCAT.
The Retail Leases Act 2003 (Vic) does not apply to some leases, including: leases for less than one year (unless the tenant stays a year or more); premises where rent and outgoings exceed $1 million a year (excluding GST); and premises leased to a listed company or its subsidiary. The Minister has also excluded some premises by determination, including premises used mainly to provide retail services above the first three storeys of a building and outside a shopping centre, leases of 15 years or more (not counting options) that require the tenant to carry out or pay for substantial works, and certain community or charitable leases. The Victorian Small Business Commission lists the premises not covered by the Act.
A landlord must give a prospective tenant a disclosure statement in the prescribed form and a copy of the proposed lease at least 14 days before the lease is entered into (Retail Leases Act 2003 (Vic) s 17). A disclosure statement is also required on renewal, and on an assignment the outgoing tenant must pass it to the incoming tenant. If the statement is not given, or is misleading, false or materially incomplete, the tenant may be able to withhold rent or end the lease within set time limits. The Victorian Small Business Commission publishes the current disclosure statement forms.
Retail and commercial leases in Victoria typically provide for periodic rent reviews. Permitted methods include CPI (Consumer Price Index) adjustments, fixed percentage increases, or market rent reviews (where rent is reset to current market rates). Under the Retail Leases Act 2003 (Vic), ratchet clauses preventing rent from decreasing on a market review are prohibited for retail leases. If the landlord and tenant cannot agree on the current market rent, it is determined by a specialist retail valuer appointed by agreement or, failing agreement, by the Victorian Small Business Commission, which can also mediate other disputes about the review.
Outgoings are the operating costs of a property that a landlord may pass on to the tenant, such as council rates, water rates, building insurance, land tax, and common area maintenance. Under section 50 of the Retail Leases Act 2003 (Vic), a retail lease cannot make the tenant pay the landlord’s land tax or commercial and industrial property tax. The lease must specify which outgoings the tenant bears, and the landlord must provide an annual estimate and reconciliation. If you are unsure what outgoings you are agreeing to pay, we recommend having a commercial lease lawyer in Victoria review the lease before you sign.
If a landlord sells the leased property in Victoria, your lease generally continues and binds the buyer. Under the Transfer of Land Act 1958 (Vic), a buyer generally takes the property subject to your lease if it is registered or you are in possession. An option to purchase is not protected by possession alone, so if your lease includes one, or you are not yet in possession, we can advise on registering it at Land Use Victoria or otherwise protecting it.