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Commercial and Retail Leasing

A lease is usually the largest financial commitment a small business signs, and the one it reads least carefully. Five years at market rent is a six-figure obligation.

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In short

If your premises are a retail shop within the meaning of the Retail Shop Leases Act 1994 (Qld), you have statutory protections the lease cannot take away — including landlord disclosure obligations. Whether the Act applies turns on the premises and their use, not on what the lease calls itself. That is the first thing to establish.

Retail shop lease, or ordinary commercial lease?

Queensland regulates retail shop leases separately, and the distinction matters more than most tenants realise. Where the Act applies, the landlord owes disclosure obligations before the lease is entered into, certain terms are overridden by statute, and disputes have a dedicated pathway. Those protections cannot be contracted out of.

Whether your premises fall inside the Act is a question about the premises, the retail area they sit in, and how they are used — not about the label on the document. We check that first, because the answer changes what is negotiable and what is already yours by law.

What we look at in a lease
Term, options and how to exercise them
Rent reviews and the review mechanism
Outgoings — what you pay beyond rent
Bank guarantee and personal guarantees
Permitted use and exclusivity
Fit-out, and who owns it at the end
Make-good obligations on exit
Assignment and subletting consent
Repairs, maintenance and services
Insurance and indemnity obligations
Default, remedy periods and re-entry
Relocation and demolition clauses

Three moments that cost tenants money

01

Missing the option window

An option to renew usually has to be exercised in writing inside a defined window before expiry. Miss it and you may have no right to stay — which hands the landlord your bargaining position entirely. Diarise it the day you sign, not the year it falls due.

02

Make-good, discovered at the end

An obligation to return the premises to base building condition can cost more than a year's rent, and it is agreed at the start when nobody is thinking about the end. Photograph the condition on entry and negotiate the standard before you sign.

03

Selling the business without checking the lease

Most buyers need the lease assigned, and most landlords must consent. If little of the term is left, or consent is conditional on things you cannot deliver, the sale can fail late and expensively. Deal with it before going to market — see buying or selling a business.

If the landlord has served a notice

A notice to remedy breach starts a clock, and the consequence of letting it run out can be re-entry and termination — losing the premises, the fit-out and the goodwill attached to the location. Do not wait to see whether the landlord follows through. There are usually more options at day two than at day twenty, including negotiating a payment arrangement, disputing the alleged breach, or seeking relief.

Where the Act applies, retail shop lease disputes have their own resolution pathway rather than going straight to court. That is usually faster and cheaper than litigation, and it is worth knowing about before positions harden.

Sources
Reviewed 25 August 2026
1Retail Shop Leases Act 1994 (Qld). legislation.qld.gov.au
2Property Law Act 2023 (Qld) — leases and related provisions. legislation.qld.gov.au
3Queensland Government — retail shop leases, and the retail shop lease dispute process. qld.gov.au
4Queensland Civil and Administrative Tribunal — retail shop lease disputes. qcat.qld.gov.au