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Do you need a Commercial or Retail Lease Agreement in Victoria?

Before we jump into the commercial lease agreement template for Victoria there are a few things you might want to consider.

In Victoria, the rules for commercial leasing are a little different in that the scope for the types of business activities that are applicable to commercial leases is far more limited.

A Victorian commercial lease is suitable for use for premises that are used primarily for wholesaling, manufacturing or storage. These are not ‘retail premises’ and are not covered by the Retail Leases Act 2003 (Vic) (the Act).

If you’re not sure whether the premises is a ‘retail premises’, then section 4 of the Act can assist. It defines ‘retail premises’ as premises used or to be used wholly or predominantly for ‘the sale or hire of goods by retail or the retail provision of services’.

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need retail lease

Recent case law in Victoria has widened the scope of the Retail Leases Act and now it would appear that most tenants, who provide any sort of service to an ultimate end-user, engage in the ‘retail provision of services’, would require a retail lease.

Some examples of retail premises

  • retail shops that sell merchandise;
  • bars, nightclubs, cafes and restaurants;
  • service stations, mechanical repair workshops and hire car outlets;
  • fitness centres and gymnasiums;
  • equipment hire shops;
  • credit unions, banks and post offices;
  • hotels, motels and other accommodation;
  • beauty and nail salons, hairdressers;
  • alternative health and massage therapists;
  • medical centres, law firms;
  • accounting and financial service providers; and
  • architects and surveyors offices.

The basic understanding is that retailing requires a product or service to be provided ‘to an ultimate consumer for a fee or reward’.

We’ll leave it up to you to decide whether you need a retail or commercial lease.

If the premises is a ‘retail premises’, the Act applies and you will need a retail lease.

If the premises isn’t a ‘retail premises’, then the Act doesn’t apply and this Commercial Lease will be suitable.

Still not sure or need some guidance – give us a call on (02) 6672 5904.

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