What is a Retail Shop Lease?
The Retail Leases Act 1994 defines a retail shop lease as any agreement under which a person grants or agrees to grant to another person for value a right of occupation of premises for the purpose of a retail shop.
How does the Act define a Retail Shop?
A retail shop is defined as premises that are used wholly or predominately for the carrying on of one or more of the businesses prescribed in Schedule 1 or are being used for the carrying on of business in a retail shopping centre.
How does the Act define a Retail Shopping Centre?
A retail shopping centre means a cluster of premises that has all of the following attributes:
- At least 5 of the premises are used wholly or predominately for the carrying on of one of the listed businesses in Schedule 1;
- The premises are all owned by the same person;
- The premises are located in one building or in two or more buildings that are either adjoining or separated only by common areas; and
- The cluster of premises is promoted as, or generally regarded as constituting a shopping centre, shopping mall, shopping court or shopping arcade.
Are there any Exceptions?
The Retail Leases Act 1994 does not apply to:
- Leases for a term of 25 years or more;
- Shops that have a lettable area of 1,000 square metres or more;
- Shops used wholly or predominately for the carrying on of a business by the tenant on behalf of the landlord;
- Any shop within premises where the principal business carried on is the operation of a cinema, bowling alley or skating rink and the shop is operated by the person who operates the cinema, bowling alley or skating rink; and
- Premises in an office tower that forms part of a retail shopping centre.
If you have any questions regarding Retail Leases you should contact our specialists at Matthews Folbigg for a no obligation initial phone call.
Director, Property, Finance & Commercial Leasing Group
Phone: 02 9806 7461