Is it a Retail Shop Lease?
In Queensland, a Retail Shop Lease affords tenants a number of legislative protections that a Commercial Lease does not. These protections cannot be contracted out of and if there are any inconsistencies in the lease, the legislative provisions prevail.
A lease should be a Retail Shop Lease if the premises being leased:
1. is used wholly or predominantly for the carrying on of a Retail Business; or
2. is located in a Retail Shopping Centre.
A lease should be a Retail Shop Lease if the premises is used wholly or predominantly for the carrying on of a Retail Business.
The Retail Shop Leases Regulation lists an extensive variety of businesses, goods, and services that are Retail Businesses including some perhaps less obvious examples such as clothing alterations, screen-printing, stamp dealing, costume hire, and footwear repair.
View the full list of Retail businesses, goods and services HERE.
Importantly, a business wholly or predominantly selling wholesale goods is not a Retail Business.
A lease should be a Retail Shop Lease if it is located in a Retail Shopping Centre.
A Retail Shopping Centre is defined as a cluster of premises where:
a. 5 or more of the premises are carrying on retail businesses; and
b. the premises are all located in the same or adjoining buildings or separated by common areas or a road; and
c. the cluster of premises is promoted or generally regarded as a shopping centre, shopping arcade, or shopping mall; and
d. all of the premises are either:
i. owned by 1 person; or
ii. have the same lessor; or
iii. comprise lots within a single community titles scheme.
What cannot be a Retail Shop Lease?
There are a number of exceptions under the legislation that cannot be a Retail Shop Lease. These include:
a. a retail shop with a floor area of more than 1,000m²;
b. some retail shops within the South Bank corporation area (depending on the circumstances of the lease);
c. a lease for a premises where the lessee is carrying on a business for the lessor or their agent;
d. a lease for a premises in a theme park, at a flea market, trade show, or festival; or
e. a lease for a premises within the common area of a retail shopping centre that is used for any of the following:
i. an information, entertainment, community or leisure facility;
ii. telecommunication equipment;
iii. an automatic teller machine;
iv. a vending machine;
v. an advertisement display;
vi. storage; or
vii. parking.
The legislation and regulation can be quite intricate, however it is important to ensure you have the correct lease in place considering the long-term benefits of having a Retail Shop Lease rather than a Commercial Lease.
We are able to assist you in determining whether your business should have a Retail Shop Lease and to ensure your interests and legal rights are fully protected in the lease.
If you are looking to lease a premises, renew a current lease, or just have questions about your commercial lease, ensure you contact us for up-to-date specialist advice.
Important Disclaimer: The material contained in this publication is of a general nature only and is based on the law as at the date of publication. It is not, nor is it intended to be, legal advice. If you wish to take any action based on the content of this publication, we recommend that you seek professional advice.