FOXLAW on QLD Property Law

Landlords and Tenants - Is your lease a 'RETAIL SHOP LEASE'?

When talking about a lease of an area to operate your business from, these leases may be broken into 2 types: 

•          ‘Retail shop leases’; and

•          ‘Non-retail shop leases’ (often simply called commercial leases). 

In Queensland, retail shop leases are covered by a specific Act, the Retail Shop Leases Act 1994, which provides for special rules for retail shop leases.  The main job of the Act is to provide equity (or fairness) in retail leasing.  This is done, in part, by providing some extra rights/protections that do not exist under the general law.

You should not assume a lease is not a ‘retail shop lease’ just because you feel the business does not sell ‘retail’ goods.  The definition set out in the Act requires careful reading and there are some leases which are ‘retail shop’ even though you may not necessarily think of them in that way.  

Therefore, whether a lease is in the initial negotiation stage, or if an issue or dispute has arisen during the life of the lease, it pays to ask the question: Is this lease a ‘retail shop lease’?  The answers to a whole range of other questions can depend on whether the Retail Shop Leases Act applies.  Happy leasing everyone!

P.S. Newsflash: On Tuesday, 10 May 2016, the Retail Shop Leases Amendment Bill 2015 was passed, amending the Retail Shop Leases Act 1994.  These amendments have been in the works for some time.  The changes will only take effect six (6) months after the date of assent.  So… watch this space!