Insights & Articles

If you work in the commercial property sector - involving retail shops, office buildings, industrial facilities, or hospitality venues - you’ll want to know about the latest updates to the ADLS Deed of Lease ('DOL'). Released on 27 November 2024, the Seventh Edition introduces significant changes to reflect the evolving commercial landscape of the past decade.

The introduction of the Building (Earthquake-prone Buildings) Amendment Act 2016 introduced major changes to how earthquake-prone buildings are identified and managed under the Building Act 2004. If you are looking to lease or buy then investigate if the new rules might impact the property you are looking at. If the property does fall under the new rules, then you need to make yourself aware of how this could impact a lease or your investment.

Consider these five tips before entering into an agreement.

The Government has moved very fast to make significant changes to the law around commercial leases. The proposed changes would allow all commercial tenants, including business owners of all sizes, whether or not they have suffered material financial losses, a rent reduction for the period of 'no access' to their premises as a result of the current Covid-19 lockdown.

Unfortunately situations where Tenants are unable to pay rent on their leased commercial premises happens all too often. As a commercial property Landlord, knowing your rights and what to do if this situation arises will help minimise your losses.

The leasing market is ever changing. Many would argue the current economy to favour tenants – there are a myriad of vacant properties currently available,and a definite lack of (quality) prospective tenants available. Many tenants are looking to down size, if not liquidate, leaving landlords ("LLs")in the unenviable position of being forced to consider short term and stop gap solutions for their own cash flow purposes. Enter the commercialreal estate agent, armed with an agreement to lease ("ATL") .... but beware, both LL and tenant, once signed the ATL will legally bind you tothe terms specified and your lawyer will be unlikely to be able to re negotiate your lease. It is important – if not critical – therefore, thatboth sides fully consider the ATL in detail before signing such. A few key considerations are as follows:

A New Normal - The impacts of the Covid-19 virus have been felt the world over and have pushed businesses to their limits. Parties on each side of a lease have been left with the job of negotiating through untested and uncertain lease clauses in a time where the support being offered by Government has been unclear and anyone who did hold insurance is discovering that 'pandemics' and 'infectious diseases' are a common policy exemption.

We have been fielding an unprecedented (but understandable) number of queries from both tenant and landlord clients wanting to understand the legal position in respect of either termination of commercial leases, and obligations in respect of rental/outgoings payments.

When it comes to a business sale you need to "know your business". It is far too easy for assumptions to be made that are not incorporated in thesale agreement itself. In this article, we comment briefly on some of the things you should think about before seeing an agent or putting pento paper.