Commercial and Retail Lease Disputes2024-10-11T14:21:41+00:00

COMMERCIAL & RETAIL

lEASE DISPUTES

Every Move Matters

Litigation Lawyers Sunshine Coast

Every – Move – Matters

Commercial & Retail Lease Disputes

Disputes over commercial and retail leases can affect both landlords and lessees, involving complex issues such as disagreements over rent reviews, repair and maintenance obligations, or breaches of lease terms. These conflicts can lead to significant financial strain and disrupt business operations. It’s essential to seek legal advice to understand your rights and obligations under your lease agreement and the relevant legislation, such as the Retail Shop Leases Act 1994 (Qld) or the Property Law Act 1974 (Qld).

At AXIA Litigation Lawyers, we offer expert representation for both landlords and lessees in navigating lease disputes. Our team is skilled in negotiation, mediation, and litigation, addressing all aspects of lease dispute resolution, including lease agreement interpretation, breach remedies, rent recovery, and dispute resolution. We uphold the highest standards of professional ethics, ensuring that our clients receive confidential and strategic legal support that aligns with their business interests and achieves legally sound outcomes.

Contact us: Monday to Friday : 9 am – 5 pm

Get Legal Support
Get Legal Support

Every – Move – Matters

Commercial & Retail Lease Disputes

Disputes over commercial and retail leases can affect both landlords and lessees, involving complex issues such as disagreements over rent reviews, repair and maintenance obligations, or breaches of lease terms. These conflicts can lead to significant financial strain and disrupt business operations. It’s essential to seek legal advice to understand your rights and obligations under your lease agreement and the relevant legislation, such as the Retail Shop Leases Act 1994 (Qld) or the Property Law Act 1974 (Qld).

At AXIA Litigation Lawyers, we offer expert representation for both landlords and lessees in navigating lease disputes. Our team is skilled in negotiation, mediation, and litigation, addressing all aspects of lease dispute resolution, including lease agreement interpretation, breach remedies, rent recovery, and dispute resolution. We uphold the highest standards of professional ethics, ensuring that our clients receive confidential and strategic legal support that aligns with their business interests and achieves legally sound outcomes.

Contact us: Monday to Friday : 9 am – 5 pm

Get Legal Support
Get Legal Support
Protecting Interests

Enforcing your lease rights rigorously.

Negotiation Excellence

Effective dispute resolution without litigation.

Courtroom Advocacy

Strong representation in lease litigations.

Financial Recovery

Pursuing compensation for lease breaches.

How axia Can help resolve your lease dispute.

At Axia Litigation Lawyers, we offer a range of services to resolve commercial and retail lease disputes efficiently. Our expert team specialises in:

We meticulously review and interpret lease agreements to ensure our clients understand their rights and obligations. This includes analysing clauses related to rent reviews, outgoings, lease duration, renewal options, and termination provisions.

We employ a variety of dispute resolution techniques, including negotiation, mediation, and arbitration, to resolve conflicts in an efficient and cost-effective manner. Our aim is to achieve a favourable outcome for our clients while preserving business relationships where possible.

Should a dispute escalate, we are prepared to represent our clients in all relevant courts and tribunals. Our litigation strategies are tailored to each client’s unique circumstances, and we advocate vigorously on their behalf to protect their interests.

We assist in negotiating and litigating claims related to the condition of the premises at the end of the lease term, ensuring that our clients are not unfairly burdened with excessive make-good or dilapidation costs.

Our team provides strategies for the recovery of rent arrears and advises on the enforcement of security provided under the lease, such as bank guarantees or personal guarantees.

We advise on the appropriate course of action when dealing with breaches of lease terms, including non-payment of rent, failure to maintain the premises, and other violations. We also guide clients through the process of lease termination, ensuring compliance with legal requirements and minimising potential liabilities.

We offer strategic advice on all aspects of leasing, including risk management, compliance with relevant legislation such as the Retail Shop Leases Act 1994 (Qld), and guidance on market trends and standard practices.

  • Lease Review and Interpretation

  • Dispute Resolution

  • Representation in Litigation

  • Make Good and Dilapidation Claims

  • Rent Arrears and Recovery

  • Breach of Lease and Termination Issues

  • Advisory Services

We are committed to aligning our outcomes with your commercial objectives and taking swift action to protect your interests.

Lease review & interpretation
We meticulously review and interpret lease agreements to ensure our clients understand their rights and obligations. This includes analysing clauses related to rent reviews, outgoings, lease duration, renewal options, and termination provisions.
Dispute Resolution
We employ a variety of dispute resolution techniques, including negotiation, mediation, and arbitration, to resolve conflicts in an efficient and cost-effective manner. Our aim is to achieve a favourable outcome for our clients while preserving business relationships where possible.
Representation in Litigation
Should a dispute escalate, we are prepared to represent our clients in all relevant courts and tribunals. Our litigation strategies are tailored to each client’s unique circumstances, and we advocate vigorously on their behalf to protect their interests.
Make Good and Dilapidation Claims
We assist in negotiating and litigating claims related to the condition of the premises at the end of the lease term, ensuring that our clients are not unfairly burdened with excessive make-good or dilapidation costs.
Rent Arrears and Recovery
Our team provides strategies for the recovery of rent arrears and advises on the enforcement of security provided under the lease, such as bank guarantees or personal guarantees.
Breach of Lease and Termination Issues
We advise on the appropriate course of action when dealing with breaches of lease terms, including non-payment of rent, failure to maintain the premises, and other violations. We also guide clients through the process of lease termination, ensuring compliance with legal requirements and minimising potential liabilities.
Advisory Services
We offer strategic advice on all aspects of leasing, including risk management, compliance with relevant legislation such as the Retail Shop Leases Act 1994 (Qld), and guidance on market trends and standard practices.

Over 75 Years of Combined Experience

Meet Our Expert Team

Axia Litigation Lawyers provide exceptional service and peace of mind for their clients. Based on the Sunshine Coast, Queensland, the Axia team services clients throughout Australia and abroad.

Adam Brown

Managing Director

Adam is the founder and Managing Director of Axia Litigation Lawyers. Having worked in Litigation and Dispute Resolution for over…..

Deneil Brown, Chief Operating Officer, Axia Litigation Lawyers
Deneil Brown

Chief Operating Officer

Deneil has been immersed in the legal industry for over 25 years and has vast experience across practice management, accounts and paralegal…

Nakita Brown, Senior Associate, Axia Litigation Lawyers
Nakita Brown

Senior Associate

Nakita is an experienced commercial litigation lawyer, bringing over ten years of legal knowledge to the table. She spent her early career…

Shane Ulyatt, Senior Associate, Axia Litigation Lawyers
Shane Ulyatt

Senior Associate

With a specialised focus on civil and commercial litigation and dispute resolution, Shane expertly handles a broad spectrum of legal matters…

Sam nelson

Lawyer

Sam’s expertise of commercial and civil litigation ranges from building and construction disputes, commercial and retail shop lease matters ….

Adam Brown
Adam Brown
Managing Director

Adam is the founder and Managing Director of Axia Litigation Lawyers. Having worked in Litigation…..

Deneil Brown
Deneil Brown
Chief Operating Officer

Deneil has been immersed in the legal industry for over 25 years and has vast experience across…

Nakita Brown
Nakita Brown
Senior Associate

Nakita is an experienced commercial litigation lawyer, bringing over ten years of legal knowledge…

Shane Ulyatt
Shane Ulyatt
Senior Associate

With a specialised focus on civil and commercial litigation and dispute resolution, Shane expertly…

Sam Nelson
Sam Nelson
Lawyer

Sam’s expertise of commercial and civil litigation ranges from building and construction disputes…

Every – Move – Matters

aVENUES TO RESOLVE LEASE DISPUTES

Axia Litigation Lawyers offer a comprehensive suite of resolution methods to clients facing commercial or retail lease disputes, ensuring a tailored approach to each unique situation. Our resolution strategies include:

We facilitate direct negotiations between parties to reach an amicable settlement without the need for formal proceedings.

Our team supports clients through mediation, a form of Alternative Dispute Resolution (ADR), to find a mutually agreeable solution with the help of a neutral third-party mediator.

For clients seeking a binding resolution outside of court, we provide advice around utilising arbitration, where an arbitrator makes a binding decision after considering all evidence and arguments.

We guide clients through the specific statutory processes provided under legislation such as the Retail Shop Leases Act 1994 (Qld), which includes mandatory mediation steps before considering litigation.

We represent clients at tribunals like the Queensland Civil and Administrative Tribunal (QCAT), which can offer a more streamlined and cost-effective alternative to traditional court litigation.

When necessary, Axia will exercise their expertise in litigation to navigate the dispute through the courts. Our approach focuses on achieving the best outcome for our clients, whether through settlement, negotiation, strategic manoeuvring, or, if required, securing a judge-made decision.

After securing a successful judicial decision, we assist in the enforcement of the decision or, if the outcome is unsatisfactory, in challenging the decision through the appropriate legal channels.

Axia Litigation Lawyers prioritise resolving disputes with a focus on crafting solutions that are specifically tailored to meet each of our clients’ unique requirements. Our approach is designed to streamline the resolution process, reducing time and stress for our clients, while always striving for the most advantageous commercial outcomes.

We understand that every client’s situation is distinct, and our commitment is to provide personalised strategies that reflect the individual nuances of each case.

FREQUENTLY ASKED QUESTIONS ABOUT LEASE DISPUTES

A commercial lease relates to the rental of property for non-retail business purposes, such as offices or industrial spaces, and is governed by general property and contract law. A retail lease, on the other hand, is specifically for properties used for the sale of goods or provision of services direct to the public, and in Queensland, such leases are subject to the Retail Shop Leases Act 1994 (Qld), which imposes additional obligations and protections for tenants and landlords.

Yes, a landlord can terminate a commercial or retail lease under certain conditions, but it must align with the lease agreement and relevant legislation. Grounds for termination include:

Breach of Lease: If the tenant breaches terms such as non-payment of rent or unauthorised activities, the landlord can terminate after providing notice to remedy the breach.

Insolvency: If the tenant becomes insolvent, the landlord may terminate the lease, subject to lease provisions and insolvency laws.

Demolition or Redevelopment: Some leases allow termination for demolition or substantial renovation, often requiring compensation.

Expiry of Lease: Upon lease expiry, if no renewal option is exercised, the landlord can require vacating possession of the property.

Mutual Agreement: Both parties can agree to early termination, often involving negotiation.

In Queensland, the Retail Shop Leases Act 1994 (Qld) governs retail lease terminations, providing tenant protections. Legal advice is crucial to ensure lawful termination and avoid wrongful termination claims.

Yes, a tenant can terminate a commercial or retail lease under certain conditions, but it must comply with the lease agreement and applicable legislation. Conditions for termination include:

Breach of Lease by Landlord: If the landlord fails to meet their obligations, such as maintaining the premises, the tenant may terminate the lease after issuing a notice and allowing time for the landlord to rectify the issue.

Mutual Agreement: Both parties can agree to terminate the lease early, documented in writing, and may involve negotiating terms, including compensation.

Early Termination Clause: Some leases include a break clause allowing early termination, subject to conditions like providing notice and paying a break fee.

Destruction or Damage: If the premises are unfit for use due to damage and the lease doesn’t require the landlord to repair, the tenant may terminate the lease.

Frustration: If an unforeseen event makes the lease’s performance impossible or radically different, the tenant may terminate under the legal doctrine of frustration.

In Queensland, the Retail Shop Leases Act 1994 (Qld) provides specific tenant protections and a dispute resolution process. Legal advice is crucial to ensure valid grounds for termination and proper procedures, avoiding potential liability for damages.

Axia Litigation Lawyers can assist with legal grounds, negotiations, and documentation for lease termination.

Lease outgoings, also known as “recoverable outgoings” or simply “outgoings,” are expenses related to the ownership and operation of a leased property that a landlord can charge to the tenant, as specified in the lease agreement. These costs are in addition to the base rent and typically cover maintenance, repair, and operational expenses of the leased premises. Outgoings may include:

  • Council rates and taxes
  • Water rates and charges
  • Building insurance premiums
  • Land tax
  • Common area maintenance (cleaning, gardening, security)
  • General building repairs and maintenance
  • Management fees for third-party property management
  • Utilities for common areas (electricity, gas)
  • Fire safety services and equipment maintenance
  • Air conditioning maintenance (if servicing multiple tenancies)
  • Lift maintenance and servicing
  • Audit fees for outgoings statements

The lease should clearly outline recoverable outgoings, the tenant’s share, and the calculation and payment method. In Queensland, the Retail Shop Leases Act 1994 (Qld) regulates recoverable outgoings for retail leases, including specific disclosure and auditing requirements. Understanding these terms is crucial to avoid disputes. Legal advice can help clarify rights and obligations regarding outgoings.

Dilapidation costs refer to expenses for restoring a leased property to its original condition upon lease expiration or termination, as required by the lease agreement. These costs, typically borne by the tenant, arise from “make good” provisions. Make good provisions usually require tenants to return the premises to its initial state, accounting for fair wear and tear. This may involve:

 

  • Repairing tenant-caused damage beyond normal wear and tear
  • Removing tenant-installed alterations or fit-outs
  • Painting and decorating to rectify changes made during the tenancy
  • Thoroughly cleaning the premises, including carpets, windows, and fixtures
  • Reinstating original fixtures and fittings
  • Addressing issues from a dilapidation report, documenting the property’s condition at lease start and end.


Requirements vary by lease, so understanding rights and obligations is crucial. Disputes may arise over the extent of make good required or the interpretation of ‘fair wear and tear.’

In Queensland, lease agreements and property law govern dilapidation issues. Legal advice is recommended for tenants to understand liabilities and for landlords to ensure enforceable make good provisions.

 

The Retail Shop Leases Act 1994 (Qld) is a piece of legislation enacted by the Queensland Parliament that regulates the leasing of retail shop premises in Queensland, Australia. The Act is designed to ensure fair trading practices and to provide a balanced framework for the negotiation, enforcement, and dispute resolution of retail shop leases.

Key provisions of the Retail Shop Leases Act 1994 (Qld) include: Disclosure Obligations, Minimum Lease Terms, Rent reviews, Outgoings, Compensation, Relocation and Demolition, Dispute Resolution and Exclusions.

It is a critical piece of legislation for both landlords and tenants involved in retail leasing in Queensland.

Read the full act here

A rent review on a commercial or retail lease adjusts the rent at specified intervals to align with current market conditions or agreed criteria, ensuring fairness for both landlord and tenant. The lease agreement details the rent review process, including:

  • Timing: Rent reviews typically occur at predetermined intervals, such as annually or biennially.
  • Method of Review: Common methods include:
  • Market Review: Adjusts rent to current market rates, often requiring an independent valuer.
  • Fixed Increase: Rent increases by a fixed percentage or amount.
  • CPI Increase: Rent adjusts according to the Consumer Price Index.
  • Turnover Rent: In retail leases, rent may include a component based on the tenant’s turnover.
  • Process: The lease outlines steps for determining new rent if parties cannot agree.
  • Dispute Resolution: Mechanisms such as independent valuation or arbitration are provided for disagreements.
  • Notice Requirements: Specific notice requirements for rent reviews and proposed new rent.

Rent reviews can be contentious, so understanding rights and obligations is crucial. A litigation lawyer can advise on rent review clauses, represent parties in negotiations or disputes, and ensure compliance with legal and contractual requirements.

Breaches can lead to remediation actions, financial penalties, or termination of the lease, depending on the severity and terms outlined in the agreement.

Dispute resolution may involve negotiation, mediation, or arbitration as alternatives to court, often leading to faster and less costly outcomes.

While not always mandatory, mediation is strongly encouraged and, in some cases, required before proceeding to litigation to attempt a mutually agreeable solution.

Timeframes vary based on the specific dispute and legislation; seek legal advice promptly to ensure your challenge is made within any statutory limits.

Rent increases must comply with the review clauses in the lease and relevant legislation, which typically protect against arbitrary increases.

Generally, the lease terms are binding on the new owner, but specific rights and obligations can depend on the lease and property laws.

If operational issues arise from a lease dispute, you may have grounds to terminate the lease and/or recourse for losses incurred, subject to the lease terms and legal advice.

Subletting or assignment typically requires lessor’s consent, as per the lease terms, and unauthorised actions can lead to disputes or breaches.

These FAQs are designed to provide a general understanding of lease disputes and are not a substitute for professional legal advice. For specific guidance on your situation, please contact our firm for a consultation with an expert in property disputes.

Every – Move – Matters

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Discover the latest insights on commercial disputes, building and construction, insolvency, personal injury, and more. Explore all our articles for in-depth legal updates from Axia Litigation Lawyers.

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