Sign Smart: Your New Financial Year Lease Guide

July marks the start of the new financial year, and for many retailers, this means new opportunities. You might want to open a brand-new store or relocate to a better spot, and signing a new retail lease is the next big step.

Before you put pen to paper, use this retail lease checklist to make sure your agreement is going to work for your business well into the future. At LeaseWise, one of Melbourne’s leading retail property management companies, we’ve helped hundreds of retailers navigate lease agreements with confidence. Here’s what you should look out for.

Which Clauses Should I Have in My 2025 Retail Lease?

Flexibility in retail matters more than ever. Double-check that there’s a fair break clause if things don’t go to plan or your business model changes down the line. You should also check on how often your rent will be reviewed and what methods will be used for the increase, which might include CPI, fixed %, or market rate. A lease with predictable rent increases you know about can make budgeting much easier.

Many landlords offer a rent-free period while you fit out your store. We strongly suggest you make sure this is clearly stated in your lease and negotiate to get enough time to do the job properly. Then, if all goes well, you’ll want to stay put. Before signing, confirm how many renewal options are included, and make sure you understand the process and deadlines for exercising them.

Lastly, your business type must match the permitted use clause. Otherwise, you risk breaching your lease. Check that the wording allows for any potential business pivots or service add-ons you might be planning in the future.

Which Retail Lease Red Flags Should I Look Out For?

Unclear responsibilities can hurt a lease faster than most other things. Be sure the lease outlines who’s responsible for structural repairs, common area maintenance, shopfront upkeep, and more. 

We also recommend that you scrutinise any additional costs passed on to you. You can do this by asking for a breakdown of outgoings like council rates, water, strata fees and cleaning costs.

Finally, it’s a red flag when the lease doesn’t detail make-good terms for when you vacate. Some clauses may require expensive reinstatement, which should ideally be negotiated down.

At LeaseWise, we specialise in representing small to medium-sized retailers. We know retail leases inside-out and how to negotiate terms that protect your interests while keeping your business future-ready.

To avoid any hidden lease challenges in the new financial year, contact LeaseWise today to get expert advice from one of Melbourne’s most trusted retail property management companies before signing.