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Info Articles | Friday 27 August 2010
Commercial Leasing when you Move Premises
Yes, we are moving to Level 2, 200 Adelaide Terrace, but it hasn’t been without its issues.
Ironically, for all the information lawyers put out about checking documents and getting advice, we found ourselves needing to take our own advice for the big move, and we’re glad we did.
So no, we didn’t get everything we wanted or wished for, because it’s a commercial world out there, and everything is negotiable until the ‘meeting of the minds’ occurs. But what was reinforced was, if this task had been left to the office accountant or administrator, then very unpleasant conditions may have been imposed.
Many issues need consideration in any leasing arrangement, including:
- Term of lease and options to renew;
- Is the lease subject to the Commercial Tenancy (Retail Shops) Act? If so, some of the provisions included in the lease may not apply;
- What restrictions may apply to the use of the premises;
- What dispute resolution mechanisms are in place?
- Repairs and maintenance and who is responsible for what?
- How is the rent calculated over the term of the lease?
Many business owners are usually and understandably very busy and pre-occupied with running their business and ensuring that work is coming through the door. However, decisions such as office premises and location still remain one of the critical decisions for any business and can turn very ugly if the proposed lease document from the landlord has not been properly reviewed and considered.
So it is imperative that solid, impartial advice be obtained before any lease document is signed - it may turn out to be one of the best decisions you can make. Remember, everything is negotiable, and a landlord wants a tenant just as badly as a tenant needs an office.
We can assure you that even though we are moving and will be somewhat closer to the Sun on level 2, this will not affect our ability to think and analyse. On the contrary, we expect it will improve our ability to offer and deliver clear, direct and concise commercial advice regarding the particular legal issues that concern your business.
So we look forward to seeing you soon.
Related Havilah Legal service(s): Property Law, Commercial Litigation
