Commercial Lease Agreement Template Australia

free commercial lease agreement template australia

This Commercial Lease Agreement (the "Agreement") is made and entered into on this [Day] day of [Month], [Year] (the "Effective Date")

BETWEEN:

1. [Landlord Legal Name] (ACN [Landlord ACN/ABN if applicable]), a corporation/individual duly organised and existing under the laws of [State/Territory], Australia, with its registered office/principal place of business at [Landlord Street Address, Suburb, State, Postcode] (the "Landlord");

AND

2. [Tenant Legal Name] (ACN [Tenant ACN/ABN if applicable]), a corporation/individual duly organised and existing under the laws of [State/Territory], Australia, with its registered office/principal place of business at [Tenant Street Address, Suburb, State, Postcode] (the "Tenant").

(The Landlord and the Tenant are hereinafter collectively referred to as the "Parties" and individually as a "Party".)

RECITALS:

A. The Landlord is the registered proprietor of the commercial premises located at [Property Street Address, Suburb, State, Postcode], specifically identified as [Suite/Shop/Unit Number, if applicable] (the "Premises"), within the building located at [Building Street Address, Suburb, State, Postcode] (the "Building"). B. The Landlord desires to lease the Premises to the Tenant, and the Tenant desires to lease the Premises from the Landlord, for the purposes and on the terms and conditions hereinafter set forth. C. This Agreement is subject to the applicable commercial tenancy laws of [State/Territory], Australia, including but not limited to [mention relevant State Act, e.g., Retail Leases Act 1994 (NSW) if applicable, otherwise omit specific Act reference] as it pertains to non-retail commercial leases.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

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1. Document Preamble & Recitals

See above.

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2. Operational Definitions

For the purposes of this Agreement, the following terms shall have the meanings ascribed to them below:

1. "Agreement" means this Commercial Lease Agreement, including all schedules and annexures attached hereto, as amended from time to time.
2. "Building" means the entire commercial structure located at [Building Street Address, Suburb, State, Postcode] of which the Premises forms a part.
3. "Business Day" means any day other than a Saturday, Sunday, or a public holiday in [State/Territory], Australia.
4. "Commencement Date" means the date specified in Item 3 of Schedule 1, being [Day] day of [Month], [Year], from which the Term of this Lease commences.
5. "Expenditure Outgoings" means all rates, taxes (including land tax if applicable and lawfully recoverable from the Tenant), charges, levies, assessments, duties, impositions, and other outgoings whatsoever imposed or charged upon the Premises or the Building (or the Landlord as owner or occupier thereof) by any competent authority, including but not limited to municipal rates, water and sewerage rates, strata levies, body corporate charges, fire services levies, and all costs of maintaining, cleaning, insuring, lighting, ventilating, and providing security services for the common areas of the Building.
6. "Initial Term" means the period of [Number] ([Number written out]) years commencing on the Commencement Date, as specified in Item 4 of Schedule 1.
7. "Lease Year" means each consecutive 12-month period during the Term, commencing on the Commencement Date and each anniversary thereof.
8. "Permitted Use" means the use of the Premises for the purpose of [Describe Permitted Use, e.g., general office, professional services, light commercial activities] and for no other purpose without the prior written consent of the Landlord.
9. "Premises" means the area designated as [Suite/Shop/Unit Number] within the Building, as more particularly described in Item 2 of Schedule 1 and outlined on the plan attached as Annexure A.
10. "Rent" means the base rent payable by the Tenant to the Landlord for the Premises, exclusive of GST and Expenditure Outgoings, as specified in Item 5 of Schedule 1.
11. "Security Deposit" means the amount specified in Item 7 of Schedule 1, held by the Landlord as security for the Tenant's performance of its obligations under this Agreement.
12. "Term" means the Initial Term and any Option Term for which this Agreement is renewed in accordance with its provisions.

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3. Substantive Terms & Obligations

3.1 Grant of Lease The Landlord hereby leases to the Tenant, and the Tenant hereby takes on lease from the Landlord, the Premises for the Term, subject to the terms and conditions of this Agreement.

3.2 Term 3.2.1 The lease shall be for an Initial Term of [Number] ([Number written out]) years, commencing on the Commencement Date. 3.2.2 Option to Renew: The Tenant shall have [Number] ([Number written out]) option(s) to renew this Agreement for a further term of [Number] ([Number written out]) years each (each an "Option Term"), provided that: (a) The Tenant has not been in material breach of this Agreement at any time during the Initial Term or preceding Option Term; (b) The Tenant gives written notice to the Landlord of its intention to exercise an option not less than [Number] ([Number written out]) months and not more than [Number] ([Number written out]) months prior to the expiration of the then-current Term; and (c) The terms and conditions of any Option Term shall be the same as this Agreement, save for any further option to renew and the Rent which shall be determined in accordance with clause 3.4.

3.3 Rent 3.3.1 The Tenant shall pay the Rent as specified in Item 5 of Schedule 1, being [Dollar Amount] ([Dollar Amount written out]) per annum, exclusive of GST. 3.3.2 The Rent shall be payable in equal [Monthly/Quarterly] instalments of [Dollar Amount] ([Dollar Amount written out]) each, in advance, on the [Day] day of each [Month/Quarter] without demand, deduction, or set-off. 3.3.3 Payments shall be made by [Specify Payment Method, e.g., direct debit/electronic funds transfer] to the Landlord's nominated bank account: [Bank Name], BSB: [BSB Number], Account No: [Account Number].

3.4 Rent Review 3.4.1 The Rent shall be reviewed on each anniversary of the Commencement Date during the Term (each a "Rent Review Date"). 3.4.2 The Rent shall be increased by [Percentage]% ([Percentage written out] percent) per annum on each Rent Review Date. 3.4.3 [OR - choose one or blend]: The Rent shall be reviewed annually on each Rent Review Date to the greater of [Percentage]% ([Percentage written out] percent) or the increase in the Consumer Price Index (All Groups, Capital Cities, Australia) (CPI) over the preceding 12 months. 3.4.4 [OR - choose one]: On the commencement of any Option Term, the Rent shall be reviewed to the then-current market rent for comparable premises in the locality, as determined by an independent valuer appointed jointly by the Parties, or in default of agreement, by the President of the Australian Property Institute (API) in [State/Territory]. The cost of such valuation shall be borne equally by the Parties.

3.5 Outgoings 3.5.1 The Tenant shall pay, in addition to the Rent, all Expenditure Outgoings relating to the Premises during the Term. 3.5.2 The Landlord shall provide the Tenant with an estimate of Expenditure Outgoings for each Lease Year. The Tenant shall pay its proportion of such estimated Outgoings in equal [Monthly/Quarterly] instalments, in advance, with the Rent. 3.5.3 Within [Number] ([Number written out]) Business Days after the end of each Lease Year, the Landlord shall provide the Tenant with a statement of actual Expenditure Outgoings for that Lease Year. Any difference between the estimated and actual Outgoings shall be paid by the Tenant to the Landlord (or refunded by the Landlord to the Tenant) within [Number] ([Number written out]) Business Days of receiving the statement.

3.6 Security Deposit 3.6.1 The Tenant shall pay the Security Deposit of [Dollar Amount] ([Dollar Amount written out]) on or before the Effective Date. 3.6.2 The Landlord shall hold the Security Deposit as security for the due performance by the Tenant of all its obligations under this Agreement. 3.6.3 Within [Number] ([Number written out]) Business Days of the expiry or earlier termination of this Agreement, and provided the Tenant has vacated the Premises, returned possession to the Landlord in good repair (fair wear and tear excepted), and fully complied with all terms, the Landlord shall refund the Security Deposit to the Tenant, less any amounts reasonably deducted for unpaid Rent, Outgoings, repairs for damage beyond fair wear and tear, or other costs incurred due to the Tenant's breach.

3.7 Permitted Use 3.7.1 The Tenant shall use the Premises solely for the Permitted Use and shall not permit the Premises to be used for any illegal, noxious, offensive, or dangerous purpose. 3.7.2 The Tenant shall not use the Premises in a manner that causes nuisance, annoyance, or disturbance to the Landlord or other tenants/occupiers of the Building.

3.8 Maintenance & Repairs 3.8.1 The Tenant shall, at its own cost, keep the interior of the Premises in good and tenantable repair and condition, including all fixtures, fittings, and equipment installed by the Tenant. This includes routine cleaning, maintenance of internal finishes, and non-structural repairs. 3.8.2 The Landlord shall be responsible for the structural repairs to the Premises and the maintenance and repair of the common areas and the exterior of the Building, provided such repairs are not necessitated by the act, neglect, or default of the Tenant or its invitees.

3.9 Alterations 3.9.1 The Tenant shall not make any alterations, additions, or improvements to the Premises, structural or otherwise, without the prior written consent of the Landlord, which consent shall not be unreasonably withheld or delayed. 3.9.2 Any alterations made by the Tenant shall be at its sole cost and carried out by qualified contractors in a professional manner, compliant with all applicable laws and building codes. 3.9.3 The Landlord may require the Tenant to remove any alterations and restore the Premises to its original condition at the Tenant's cost upon termination of this Agreement.

3.10 Insurance 3.10.1 The Landlord shall maintain appropriate insurance for the Building, including public liability insurance for the common areas and building insurance for the Premises. 3.10.2 The Tenant shall, at its own cost, maintain: (a) Public liability insurance with an insurer acceptable to the Landlord, for a minimum sum of [Dollar Amount] ([Dollar Amount written out]) covering injury to persons and damage to property arising out of the Tenant's use and occupation of the Premises; (b) Insurance for its stock, contents, fixtures, fittings, and equipment within the Premises against loss or damage by fire, theft, and other insurable risks; and (c) Workers' compensation insurance as required by law for its employees. 3.10.3 The Tenant shall provide the Landlord with current Certificates of Currency for all required insurance policies upon request.

3.11 Assignment & Subletting 3.11.1 The Tenant shall not assign, sublet, mortgage, charge, or otherwise part with possession of the Premises or any part thereof, or grant any licence or concession in respect thereof, without the prior written consent of the Landlord. 3.11.2 The Landlord shall not unreasonably withhold consent to an assignment or subletting, provided the proposed assignee or subtenant is a reputable and financially sound entity, capable of complying with the terms of this Agreement, and the Permitted Use remains unchanged. 3.11.3 Any consent granted shall not release the Tenant from its obligations under this Agreement unless expressly stated in writing by the Landlord.

3.12 Compliance with Laws 3.12.1 The Tenant shall, at its own expense, comply with all laws, statutes, ordinances, regulations, and requirements of any governmental or other authority applicable to its use and occupation of the Premises. 3.12.2 The Landlord shall comply with all laws, statutes, ordinances, regulations, and requirements of any governmental or other authority applicable to its ownership of the Building and the structural integrity thereof.

3.13 Landlord's Access The Landlord, or its agents, shall have the right, upon reasonable prior notice (except in emergencies), to enter the Premises at reasonable times to inspect its condition, undertake necessary repairs, or show the Premises to prospective tenants or purchasers.

3.14 Quiet Enjoyment Subject to the Tenant paying the Rent and complying with all its obligations under this Agreement, the Tenant shall quietly hold and enjoy the Premises during the Term without any interruption from the Landlord or any person claiming through the Landlord.

3.15 Holding Over If the Tenant continues to occupy the Premises after the expiration or earlier termination of the Term without a new written agreement, the Tenant shall be deemed to be a monthly tenant holding over on the same terms and conditions as this Agreement, save that the Rent shall be increased by [Percentage]% ([Percentage written out] percent) of the then-current Rent, and either Party may terminate the tenancy by giving [Number] ([Number written out]) month's written notice.

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4. Default, Termination, and Remedies

4.1 Events of Default An "Event of Default" shall occur if: (a) The Tenant fails to pay any Rent, Outgoings, or other money payable under this Agreement on its due date; (b) The Tenant breaches any other material covenant, condition, or obligation under this Agreement; (c) The Tenant, being a corporation, becomes insolvent, is wound up, has a liquidator, provisional liquidator, administrator, or receiver appointed, or enters into any scheme of arrangement or composition with its creditors; (d) The Tenant, being an individual, becomes bankrupt, enters into a scheme of arrangement or composition with creditors, or has a trustee in bankruptcy appointed; (e) The Tenant abandons the Premises or ceases to carry on its business therein for [Number] ([Number written out]) consecutive Business Days without prior written notice to the Landlord.

4.2 Notice and Cure Periods 4.2.1 Monetary Default: If an Event of Default occurs under clause 4.1(a), the Landlord may give written notice to the Tenant requiring the Tenant to remedy the default within [Number] ([Number written out]) Business Days of the date of the notice. 4.2.2 Non-Monetary Default: If an Event of Default occurs under clause 4.1(b) (other than a monetary default), the Landlord may give written notice to the Tenant requiring the Tenant to remedy the default within [Number] ([Number written out]) Business Days of the date of the notice. The stipulated 30 Business Days for cure will apply here. 4.2.3 Insolvency/Bankruptcy: If an Event of Default occurs under clauses 4.1(c) or 4.1(d), the Landlord may terminate this Agreement immediately by written notice, subject to any applicable statutory provisions that may restrict such termination. 4.2.4 Abandonment: If an Event of Default occurs under clause 4.1(e), the Landlord may terminate this Agreement immediately by written notice.

4.3 Landlord's Remedies If an Event of Default occurs and the Tenant fails to remedy it within the specified cure period (or if no cure period is applicable, immediately), the Landlord may, without prejudice to any other rights or remedies at law or in equity: (a) Re-entry: Re-enter and take possession of the Premises and expel the Tenant and any persons claiming through the Tenant, without being liable for trespass or any claim for damages. (b) Termination: Terminate this Agreement by written notice to the Tenant. (c) Damages: Claim from the Tenant all outstanding Rent, Outgoings, and other monies due, together with damages for loss suffered by the Landlord, including but not limited to: (i) The costs of recovering possession of the Premises; (ii) The costs of re-letting the Premises (including legal fees, advertising, and agent's commissions); (iii) Any loss of Rent and Outgoings during any period of vacancy following termination; (iv) The costs of making good any damage to the Premises beyond fair wear and tear; and (v) Damages for the loss of the benefit of this Agreement for the unexpired portion of the Term. (d) Forfeiture of Security Deposit: Draw upon or forfeit the Security Deposit to set off against any sums due and payable by the Tenant to the Landlord. (e) Interest: Charge interest on any overdue amounts at the rate of [Percentage]% ([Percentage written out] percent) per annum, calculated daily from the due date until paid in full.

4.4 Tenant's Remedies If the Landlord commits a fundamental breach of this Agreement, and fails to remedy such breach within [Number] ([Number written out]) Business Days after receiving written notice from the Tenant detailing the breach, the Tenant may: (a) Damages: Claim damages for any loss suffered as a direct result of the Landlord's breach; and/or (b) Termination: Terminate this Agreement if the breach is so fundamental as to deprive the Tenant of substantially the whole benefit of this Agreement.

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5. Boilerplate Legal Provisions

5.1 Severability If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, such provision shall be severed from this Agreement, and the remaining provisions shall continue in full force and effect.

5.2 Entire Agreement This Agreement, including all schedules and annexures, constitutes the entire agreement between the Parties concerning the subject matter hereof and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written, between the Parties. No representation, warranty, or promise not expressly contained herein shall be binding on the Parties.

5.3 Force Majeure Neither Party shall be liable for any failure or delay in performance under this Agreement (excluding payment obligations) due to causes beyond its reasonable control, including but not limited to acts of God, war, terrorism, riots, embargoes, acts of civil or military authorities, fires, floods, accidents, epidemics, pandemics, or strikes ("Force Majeure Event"). The Party affected by a Force Majeure Event shall promptly notify the other Party and use reasonable endeavours to minimise the impact of the event. If the Force Majeure Event continues for a period exceeding [Number] ([Number written out]) months, either Party may terminate this Agreement by giving [Number] ([Number written out]) Business Days' written notice to the other Party.

5.4 Governing Law This Agreement shall be governed by and construed in accordance with the laws of [State/Territory], Australia. The Parties irrevocably submit to the non-exclusive jurisdiction of the courts of [State/Territory], Australia, and any courts which may hear appeals from those courts.

5.5 Dispute Resolution 5.5.1 Negotiation: In the event of any dispute or difference arising between the Parties concerning this Agreement, the Parties shall first endeavour to resolve the dispute through good faith negotiations. 5.5.2 Mediation: If the dispute is not resolved by negotiation within [Number] ([Number written out]) Business Days, either Party may refer the dispute to mediation. The mediator shall be agreed upon by the Parties, or failing agreement within [Number] ([Number written out]) Business Days, appointed by the Chair of the Australian Commercial Disputes Centre (ACDC) in [State/Territory]. The costs of mediation shall be borne equally by the Parties. 5.5.3 Litigation: If the dispute is not resolved through mediation within [Number] ([Number written out]) Business Days of the appointment of a mediator, either Party may commence legal proceedings in any court of competent jurisdiction in [State/Territory], Australia. This clause does not prevent a Party from seeking urgent interlocutory relief.

5.6 Notices Any notice or communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given: (a) When delivered personally; (b) Two (2) Business Days after being sent by pre-paid post; or (c) Upon transmission if sent by email, provided no error message is received and it is sent to the email address specified below: Landlord: [Landlord Email Address] Tenant: [Tenant Email Address] Landlord Address for Notices: [Landlord Street Address] Tenant Address for Notices: [Tenant Street Address]

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6. Formal Execution Block

IN WITNESS WHEREOF, the Parties have executed this Agreement on the Effective Date.

EXECUTED by the LANDLORD:

[If a Company] [Landlord Legal Name] (ACN [Landlord ACN/ABN]) by its authorised representatives in accordance with section 127 of the Corporations Act 2001 (Cth):

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Signature of Director [Director's Full Name]

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Signature of [Director/Company Secretary] [Director/Company Secretary's Full Name]

Date: [Day] / [Month] / [Year]

[If an Individual]

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Signature of Landlord [Landlord's Full Name]

Date: [Day] / [Month] / [Year]

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EXECUTED by the TENANT:

[If a Company] [Tenant Legal Name] (ACN [Tenant ACN/ABN]) by its authorised representatives in accordance with section 127 of the Corporations Act 2001 (Cth):

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Signature of Director [Director's Full Name]

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Signature of [Director/Company Secretary] [Director/Company Secretary's Full Name]

Date: [Day] / [Month] / [Year]

[If an Individual]

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Signature of Tenant [Tenant's Full Name]

Date: [Day] / [Month] / [Year]

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SCHEDULE 1 - KEY LEASE TERMS

Item 1: Landlord [Landlord Legal Name] ACN/ABN: [Landlord ACN/ABN] Address: [Landlord Street Address, Suburb, State, Postcode]

Item 2: Tenant [Tenant Legal Name] ACN/ABN: [Tenant ACN/ABN] Address: [Tenant Street Address, Suburb, State, Postcode]

Item 3: Premises [Suite/Shop/Unit Number, if applicable] at [Property Street Address, Suburb, State, Postcode] Approximate Area: [Area, e.g., 150 square meters]

Item 4: Commencement Date [Day] day of [Month], [Year]

Item 5: Initial Term [Number] ([Number written out]) years

Item 6: Options to Renew [Number] ([Number written out]) option(s) of [Number] ([Number written out]) years each

Item 7: Rent (exclusive of GST) [Dollar Amount] ([Dollar Amount written out]) per annum Payable [Monthly/Quarterly] in advance: [Dollar Amount] ([Dollar Amount written out]) per [Month/Quarter]

Item 8: Rent Review Method [Select one: Fixed Percentage Increase / CPI / Market Review / Fixed Percentage OR CPI] [If Fixed Percentage: Percentage]% [If CPI: CPI (All Groups, Capital Cities, Australia)]

Item 9: Security Deposit [Dollar Amount] ([Dollar Amount written out])

Item 10: Permitted Use [Describe Permitted Use, e.g., General office, professional services]

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ANNEXURE A - PLAN OF PREMISES (Attach a clear floor plan outlining the Premises.)