The Top 7 Lease Clauses Every Brisbane Business with a Premises Should Understand

Introduction

Signing a commercial or retail lease is one of the biggest financial commitments most Brisbane business owners will make. Whether you’re opening a café in Fortitude Valley, a retail shop in Westfield Chermside, or an office in the CBD, understanding your lease terms is essential to protecting your investment.

At Greyson Legal | Brisbane leasing lawyers we assist landlords and tenants across Queensland with drafting, reviewing, and negotiating lease agreements. We’ve identified the seven important lease clauses every Brisbane business with a premises should understand — before signing a lease.

Retail Clothing Shop

Lease Term and Option to Renew

The term of your lease — and whether you have a right to renew or extend — determines how long you can occupy the premises and plan for the future.

• Most Brisbane retail and commercial leases run between 3 to 5 years.

• An option to renew gives the tenant the right (but not obligation) to continue leasing after the initial term, usually by giving notice within a specific time frame (e.g., 3–6 months before expiry).

Failing to exercise an option correctly can mean losing the right to occupy and use premises, even if your business is thriving. A leasing lawyer can help ensure renewal clauses are clear, practical, and compliant with the Retail Shop Leases Act 1994 (Qld) where applicable.

Rent Reviews and Increases

Rent review clauses set out how and when rent will increase during the lease term. Common methods include:

• CPI (Consumer Price Index) adjustments

• Fixed percentage increases (e.g., 3–5% per annum)

• Market rent reviews at option or renewal time

Each method can have vastly different financial impacts. For example, a CPI increase may fluctuate annually, while a market review could result in a substantial rent rise in popular Brisbane precincts like South Bank or James Street.

Greyson Legal | Brisbane leasing lawyers can review these clauses to ensure increases are transparent, reasonable, and capped where possible.

Outgoings and Additional Costs

Outgoings are often misunderstood — yet they can add thousands of dollars annually to a tenant’s costs.

Typical outgoings may include:

• Council rates and water charges

• Building insurance

• Air-conditioning and maintenance

• Body corporate fees

• Cleaning and common area expenses

In retail leases, the landlord must comply with strict disclosure obligations under the Retail Shop Leases Act, outlining what outgoings the tenant must pay.

Before signing, always check:

• Which outgoings are payable;

• Whether they’re based on actual or estimated costs; and

• If the landlord can pass on land tax (often prohibited in retail leases).

Greyson Legal’s leasing lawyers in Brisbane can identify excessive or non-compliant outgoings and negotiate fairer terms.

Make-Good and Fit-Out Obligations

When your lease ends, you may be required to restore the premises to its original condition — this is known as the “make-good” clause.

Typical requirements include:

• Removing fixtures, signage, and equipment

• Repainting or repairing walls and flooring

• Other restoration

These obligations can become costly if they’re not properly understood. Tenants should clarify the scope of make-good early, ideally before fit-out works begin.

At Greyson Legal, we regularly assist Brisbane tenants to understand make-good clauses and ensure they are clear, practical, and commercially fair.

Assignment and Sub-Lease Rights

If your business grows, relocates, or you are looking to sell the business, you may wish to assign the lease to a new tenant or sub-lease part of the space.

Under Queensland law, landlords must act reasonably when deciding whether to grant consent to an assignment. However, original tenants (and their guarantors) can remain liable for the new tenant’s defaults unless released in writing or prescribed by statute.

This clause is crucial for businesses selling their operations in Brisbane. Greyson Legal Brisbane Leasing Lawyers can help you negotiate deeds of assignment and release to limit future exposure.

Repairs, Maintenance, and Structural Works

A well-drafted lease should clearly state who is responsible for maintenance and repairs.

Generally:

• The landlord handles structural repairs (roof, foundations, external walls).

• The tenant is responsible for non-structural maintenance (lighting, plumbing, internal finishes).

However, leases can sometimes blur these lines — particularly in older Brisbane buildings. A leasing lawyer can review the terms to ensure you’re not burdened with hidden repair liabilities.

Termination and Default Clauses

Every lease sets out when and how it can be terminated — whether for breach, insolvency, redevelopment, or relocation.

Key issues to check:

• Default notice periods and remedies

• Lockout rights of the landlord

• Early termination or relocation provisions

• Compensation rights for tenants under the Retail Shop Leases Act

Understanding these terms can mean the difference between a smooth exit and a costly dispute. Greyson Legal helps both landlords and tenants minimise risk and ensure compliance if early termination becomes necessary.

Why Brisbane Businesses Should Get Legal Advice Before Signing

Each of these seven clauses can significantly affect your business’s profitability, flexibility, and risk exposure. Even minor drafting differences can have major financial consequences.

At Greyson Legal Brisbane Leasing Lawyers we can:

• Review your lease before signing to identify risks and hidden costs

• Ensure compliance with the Retail Shop Leases Act 1994 (Qld)

• Help you negotiate more favourable commercial terms

• Assist with renewals, variations, and lease disputes

Whether you’re leasing in Brisbane’s CBD, Fortitude Valley, or the bayside suburbs, getting tailored legal advice ensures your lease supports — not hinders — your business success.

Need help reviewing your commercial or retail lease?Contact Greyson Legal — Brisbane Leasing Lawyers for clear, practical advice before you sign.