Non-Legal Due Diligence Checklist Before Signing a Lease in Brisbane

When entering a commercial or retail lease in Brisbane, legal reviews are only one part of the due diligence process. Tenants also need to investigate a range of non-legal commercial, financial, and operational issues that can significantly impact business performance, profitability, and long-term viability. Below is a detailed overview of the non-legal considerations Brisbane tenants should review before committing to a leasing agreement.

Location & Demographics

Choosing the right location is one of the most important non-legal due diligence steps.

Key factors to assess:

• Target customer base: Does the area attract your ideal demographic?

• Foot traffic: Observe the location at different times of day and days of the week.

• Competing businesses: Are nearby competitors complementary or threatening?

• Accessibility: Proximity to public transport, major roads, and parking availability.

• Local area growth: Check Brisbane City Council development plans, precinct upgrades, and upcoming infrastructure projects.

• Neighbouring tenants: Are they high-quality, stable, and likely to attract customers?

2. Physical Condition of the Premises

Before signing a lease, the tenant must understand the building’s condition and suitability for their intended use.

Key considerations:

• Age of the building and existing wear (roofing, plumbing, structural concerns).

• Air-conditioning performance, maintenance records, and replacement history.

• Services and utilities capacity (three-phase power, grease trap, exhaust, NBN availability).

• Existing fit-out condition and what needs upgrading.

• Asbestos or hazardous material risks in older Brisbane buildings.

• Water leaks, mould or drainage issues, especially in older city fringe areas.

Fit-Out Requirements & Costs

Tenants should plan their fit-out well before entering into a lease.

Due diligence questions:

• What is the estimated cost of fit-out for the space?

• Does the building require special approvals (e.g., food premises, health-related uses)?

• Does the lessor provide any fit-out contributions or rent-free periods?

• Are there centre design guidelines (in shopping centres) that increase costs?

• What is the timeline for fit-out completion?

• Are there any restrictions on working hours for builders (especially in CBD towers)?

Operational Suitability

Even if the physical building is acceptable, the premises must suit your operational needs.

Key issues:

• Trading hours: Does the building or shopping centre restrict opening hours?

• Delivery zones & loading dock access: Crucial for cafés, retailers, and warehouses.

• Storage space: Is there adequate on-site or off-site storage?

• Waste management: Food and hospitality businesses require appropriate facilities.

• Noise restrictions: Important for gyms, fitness studios, medical users, and hospitality operators.

• Signage opportunities: Check visibility from the street, centre entrances, or main roads.

Market Rent & Financial Viability

Before signing a lease, tenants should independently assess the financial feasibility of the premises.

Essential due diligence items:

• Compare the rent with similar Brisbane properties (same size, location, and type).

• Check additional outgoings such as marketing levies, cleaning fees, and centre management charges.

• Estimate total occupancy cost as a percentage of revenue (important in retail).

• Understand seasonal trading patterns in Brisbane suburbs such as South Bank, Fortitude Valley, Chermside, and the CBD.

• Assess future rent increases and forecast affordability.

Surrounding Infrastructure & Future Developments

Brisbane is undergoing significant development ahead of the 2032 Olympics, and tenants should consider how future projects may impact their business.

Key checks:

• Brisbane City Council development applications for nearby sites.

• Major infrastructure projects such as precinct redevelopments, roadworks, and public transport upgrades.

• Impact of future competition nearby (new centres, supermarkets, QSR outlets).

• Risk of large construction projects reducing access or foot traffic.

Parking, Transport & Customer Access

Accessibility can significantly affect customer numbers and staff convenience.

Consider:

• On-site parking availability and cost.

• Staff parking arrangements.

• Disabled access and compliance with relevant standards.

• Public transport links, especially in inner-Brisbane suburbs.

• Walkability and bicycle storage (important in modern commercial precincts).

Business Performance of the Centre or Precinct

In shopping centre or multi-tenant environments, investigate the commercial success of the location.

Look at:

• Vacancy rates within the centre or strip.

• Centre traffic patterns and anchor tenant performance.

• Marketing strategy of the centre or precinct.

• Historical tenant turnover, especially in the CBD and Fortitude Valley retail pockets.

Competition & Local Market Conditions

Understanding your local market helps reduce commercial risk.

Due diligence tasks:

• Identify nearby competitors.

• Assess whether the area is saturated or underserved.

• Review Brisbane retail data trends (e.g., vacancy rates of ~18–19% in the CBD).

• Analyse customer demand and spending patterns by suburb.

Business Sustainability & Long-Term Viability

Before entering into a long-term lease, evaluate whether the business can sustain the premises.

Consider:

• Projected sales vs occupancy costs.

• Whether the premises allows for future expansion or growth.

• The business’s ability to withstand fluctuations in economic conditions.

• Whether shorter lease terms or options might reduce risk.

Conclusion

Non-legal due diligence is essential for any Brisbane business considering a new commercial or retail lease. Understanding the physical space, financial commitments, location dynamics, customer access, competition, and operational requirements can prevent costly mistakes and improve long-term business success.

For comprehensive legal due diligence, including lease reviews, disclosure statements, negotiations, and compliance with the Retail Shop Leases Act 1994 (Qld), Greyson Legal – Brisbane Leasing Lawyers can provide clear, practical and commercially focused advice.

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