Entering into a commercial lease is one of the most significant legal and financial commitments a business can make. Whether you are leasing a retail shop in Southport, an office in Robina or an industrial warehouse in Burleigh Heads, the terms of your lease can have lasting consequences for your business.
Commercial leases in Queensland are often lengthy, highly negotiated documents that allocate risk between landlords and tenants. A Gold Coast commercial leasing lawyer can help identify issues before the lease is signed, negotiate more favourable terms where appropriate and assist in resolving disputes if they arise.
Why advice from commercial lease solicitors matters before signing
Commercial leases give landlords and tenants far greater freedom to negotiate their own terms than residential tenancy agreements. Once signed, both parties are usually bound by those terms, so it is important to understand the legal and commercial implications from the outset.
Experienced solicitors for commercial leases can assist by:
- Reviewing and explaining lease terms
- Negotiating amendments before execution
- Advising on rent reviews and outgoings
- Assessing option to renew provisions
- Reviewing security bonds and guarantees
- Advising on make good obligations, assignments and transfers
- Representing clients in leasing disputes.
Queensland commercial leasing is governed primarily by common law.
Understanding the difference between retail and commercial leases
In Queensland, leases of business premises generally fall into one of two categories: retail shop leases and non-retail commercial leases.
The distinction matters because the Act provides additional protections for many retail tenants. Coverage depends on the type of premises and its intended use, so even a lease that does not appear retail at first glance may fall within the Act. Commercial lease solicitors can confirm how a lease is classified before anything is signed.
| Issue | Retail shop lease | Non-retail commercial lease |
| Landlord’s legal costs of preparing the lease | Generally cannot be passed on to the tenant | Commonly paid by the tenant |
| Land tax | Cannot be recovered from the tenant | Often recoverable as an outgoing |
| Disclosure statement | Required before the lease is entered into | Not required |
| Reminder of option to renew | Landlord must give written notice 2 to 6 months before the option expires | Only if the lease requires it |
| Rent review | Can only be by one method on each occasion | Not restricted |
Key lease terms that should never be overlooked
Many leasing disputes arise because parties focus primarily on rent while overlooking other important provisions that solicitors for commercial leases routinely review and negotiate.
Rent reviews
A lease should clearly explain when rent increases occur and how they are calculated, whether linked to CPI, fixed increases or market rent.
Outgoings
The lease should specify which expenses the tenant must pay, such as council rates, insurance, maintenance and utilities. Retail shop leases are subject to restrictions on recovery. For example, land tax and the landlord’s legal costs of preparing the lease cannot generally be passed on to the tenant.
Options to renew
Missing an option deadline can have serious consequences. An option must usually be exercised strictly in accordance with the lease, and a late or invalid notice may result in the loss of the right to continue occupying the premises. Retail shop landlords in Queensland must also give tenants written notice of the option period between 2 and 6 months before it expires, and a Gold Coast property lawyer can prepare and serve option notices correctly.
Security
Landlords commonly require a security bond, a bank guarantee or a personal guarantee from company directors, and the arrangement can often be negotiated. Gold Coast business lawyers often advise directors on guarantee risks before signing. Where a cash bond is held, registering a security interest on the Personal Property Securities Register (PPSR) can help protect those funds if the tenant becomes insolvent.
Lease incentive agreements and confidential incentive deeds
Commercial leasing often involves incentives and other landlord/tenant arrangements which are sometimes documented in separate deeds. Inconsistencies between the lease and the deed may create risks, including disputes over the true rent payable, misleading financiers or future purchasers about rental income and uncertainty if the property is sold.
Clawback clauses also deserve scrutiny. In GWC Property Group Pty Ltd v Higginson & Ors [2014] QSC 264, the Supreme Court dismissed claims exceeding $1,000,000 for repayment of lease incentives, finding the provisions unenforceable as a penalty. QBM Lawyers acted for the guarantors in that matter, which continues to influence how incentive deeds are drafted in Queensland.
What the Property Law Act 2023 (Qld) means for leases
The Property Law Act 2023 (Qld) commenced on 1 August 2025, replacing the 1974 Act. Under the new Act, a tenant who assigns a lease entered into after commencement, along with that tenant’s guarantor, is generally released from liability for breaches occurring after the assignment, making tenant selection and security arrangements even more important for landlords. A commercial lawyer on the Gold Coast can advise how the new Act affects existing lease precedents.
What the Property Law Act 2023 (Qld) means for leases
The Property Law Act 2023 (Qld) commenced on 1 August 2025, replacing the 1974 Act. Under the new Act, a tenant who assigns a lease entered into after commencement, along with that tenant’s guarantor, is generally released from liability for breaches occurring after the assignment, making tenant selection and security arrangements even more important for landlords. A commercial lawyer on the Gold Coast can advise how the new Act affects existing lease precedents.
Common commercial leasing disputes
Disputes can arise before, during or after the lease term. Common issues include unpaid rent, which debt recovery lawyers are frequently engaged to pursue, disagreements over outgoings, failure to exercise an option correctly, make good obligations, alleged lease breaches, repairs, termination and personal guarantees. Many can be resolved through negotiation or mediation, and retail shop lease disputes are generally referred to the Queensland Small Business Commissioner (QSBC) for mediation before they may proceed to QCAT or, depending on the nature of the dispute, another court. Where proceedings cannot be avoided, lawyers for litigation can act in the tribunal or the courts, and early advice from a property litigation lawyer often prevents minor issues becoming costly disputes.
How a Gold Coast commercial leasing lawyer protects both landlords and tenants
Whether you own commercial property or operate a business from leased premises, obtaining advice from property lawyers on the Gold Coast before signing a lease is generally far more cost-effective than resolving a dispute later. A well-drafted lease should clearly set out each party’s rights and obligations, and with the Property Law Act 2023 (Qld) now in force, both sides have good reason to have documents reviewed rather than relying on precedents drafted under the old law. Understanding your position before signing, ideally with guidance from a Gold Coast solicitor, can help avoid costly disputes and support a successful leasing relationship.
If you are entering into, renewing or disputing a commercial lease on the Gold Coast, QBM Lawyers’ team of commercial lease solicitors can review your lease, explain your rights and obligations under the Retail Shop Leases Act 1994 (Qld) and the Property Law Act 2023 (Qld), negotiate lease terms and assist with dispute resolution where required. Contact our team to arrange a confidential discussion about your commercial leasing matter.
Frequently Asked Questions
While it is not legally required, having commercial lease solicitors review a commercial lease can help identify unfavourable clauses, explain your obligations and negotiate amendments before the lease is signed.
Yes. Many commercial lease terms are negotiable, including rent review mechanisms, outgoings, option periods, security requirements and make good obligations.
Retail shop leases may be covered by the Retail Shop Leases Act 1994 (Qld) and the Property Law Act 2023, which provides additional protections for eligible tenants, including disclosure obligations and restrictions on recovering land tax and lease preparation costs. Non-retail commercial leases are generally governed by the lease terms and common law.
If the option is not exercised correctly and within the required timeframe, you may lose the right to renew the lease. In some cases, the landlord is not obliged to offer another lease, although some landlords may agree to negotiate a new lease on fresh terms. A Gold Coast commercial leasing lawyer can review whether an option was validly exercised.
It depends on the type of lease. For many retail shop leases in Queensland, landlords cannot recover their legal costs of preparing the lease from the tenant. Different arrangements commonly apply to non-retail commercial leases, where tenants often pay both parties’ costs depending on the negotiated terms.
