Commercial property transactions involve some of the most important decisions any business will face. Berryman Partners understand that these decisions have serious implications for the commercial success of your business.
Because commercial property transactions have such direct implications for your bottom-line, it is vitally important that leases and contracts are drafted with precision. Such services should be performed by experienced solicitors and Berryman Partners has the expertise to ensure that your circumstances are reflected in these documents and to protect you from the unforeseen. We can advise you in a friendly and personal manner to help you understand any contract or lease.
Our services are tailored to your business. We understand that no enterprise is the same and we have experience advising a diverse range of clients, from sole traders and small businesses to investors and developers. We also have experience acting for both landlords and tenants. No matter what your business structure is or what your goals are, Berryman Partners will aim to provide cost-effective yet thorough advice that has your commercial interests at heart.
Buying and Selling Commercial Property
The process of buying and selling commercial property is similar to buying and selling any other type of property. There are, however, some additional considerations. These include:
Whether the property is or will be subject to a commercial lease.
Whether there are Council or legislative restrictions as to the use of the building.
For this reason, it is vitally important to not enter any such transaction without expert advice. Berryman Partners can provide this advice for you. We will point out all of these considerations to ensure that your sale or purchase … and so that you’re informed every step of the way. We can also assist if you require expert advice on the business structure that is most appropriate for you or with the execution of any commercial leases over the property.
Leasing Commercial Property
A lease is an agreement between an owner of property (landlord or lessor) and a person or persons who are granted the right to occupy those premises (tenant or lessee). Both the lessor and lessee will have certain rights and obligations.
In a commercial context there are two main types of leases:
Retail leases: A retail lease relates to a lease over retail premises. Such premises will include shopping centres, hairdressers and restaurants. The legislation which governs retail leases imposes strict disclosure obligations on both the lessor and the lessee.
Business or commercial leases: Leases which do not constitute retail leases are referred to as business or commercial leases. Commercial leases, unlike ordinary residential leases, are not usually standard-form documents. There are normally prepared by a solicitor and contain significant obligations on a tenant in relation to the occupancy of the leased premises.
Advice for Lessees/Tenants
The success of your business will depend on your understanding of your rights and obligations under a commercial lease. At Berryman Partners, we’re here to help you negotiate the best terms possible and help you to understand these rights and responsibilities.
Aside from obligations to make periodic payments of rent, lessees are generally responsible for keeping the premises, including any fixtures and fittings, in good repair. The lessee is also obliged to repair any damage beyond fair wear and tear and, at the conclusion of the lease, the lessee will bear the cost of restoring the premises to their original condition.
The lease may also provide for the lessee to pay rates and strata levies. These costs will usually be in addition to the base rent.
As well as the obligations imposed on the lessee, there are important rights which any lessee needs to understand in order to fully protect themself during the term of the lease. For example, a lease will usually provide for an abatement of rent during any period in which the premises are not fit for the lessee’s occupancy. This can be extremely important as it protects you financially if you are ever faced with a situation where your business cannot operate due to problems with the premises.
Berryman Partners has extensive experience acting for lessees in commercial leases. We’re friendly, personal and we strive to protect your business to allow you to spend your valuable time focusing on your commercial endeavours.
Advice for Lessors/Landlords
Berryman Partners also has experience acting for lessors on commercial lease transactions. We understand that protecting the interests of the landlord is just as important as protecting the interests of the tenant.
Our advice extends to all aspects of the tenancy process. We will negotiate the lease terms with the lessee to ensure you the most favourable terms possible. When drafting the lease we will liaise with you to keep you informed and ensure you understand every aspect of the agreement.
One of the major issues that can arise under a commercial lease is the assignment of the lease or the execution of a sublease. A sublease involves the tenant leasing some or all of the leased premises to another party (subtenant). An assignment of a lease or sublease occurs when the tenant or subtenant transfers the lease to another party. We will keep you the landlord advised as to your rights in relation to these transactions to ensure you are adequately protected.
Berryman Partners can also provide expert advice, tailored to the circumstances of any lessor of commercial property, in relation to the many other issues that can arise under a commercial lease. We can provide debt recovery services to assist with collecting any unpaid rent or levies, we will negotiate periodic rent reviews or abatements of rent on your behalf, and we’ll ensure that your tenants are meeting their obligations under the lease.