If you are a commercial tenant you probably already know that retail shop tenants have a higher level of protection than do other commercial tenants. A retail shop landlord is restrained from doing certain things.
You may be a retail shop tenant even if you do not operate a retail shop. It is essential that you are able to determine if you are entitled to the benefits of the act. A link to the Retail Shop Leases Act is set out here.
Landlords are not permitted to pass on the cost of preparing a lease to their retail shop tenant.
There are rules about the maximum proportion of outgoings that a landlord can ask a retail shop tenant to pay.
The landlord is restricted in the way that increases in rental can be imposed.
There are other benefits also. You should make sure that your lawyer is aware of all of these benefits and that your lease is checked to see that it complies with the act. If you have any doubts, please contact us
It is to your benefit to know if you are a retail shop tenant. There are two ways that you may become a retail shop tenant.
1. Go to the back of the Retail Shop Lease Regulations -Your kind of retail business may be included in the list in the Regulations. Please follow the link. or
2. You may be located in a Retail Shopping Centre. We have set out below Section 8 of the Retail Shop Leases Act which shows how you determine if the premises are a Retail Shopping Centre.
If either 1 or 2 above is correct then you have the additional benefits and protections of the act.
Meaning of Retail Shopping Centre
(1) A retail shopping centre is a cluster of premises having all of the following attributes—
(a) 5 or more of the premises are used wholly or predominantly for carrying on retail businesses;
(b) all the premises—
(i) are owned by the 1 person; or
(ii) have the one lessor or head lessor, or, if the premises were leased, would have the one lessor or head lessor; or
(iii) comprise lots within a single community titles scheme;
(c) all the premises are located in—
(i) 1 building; or
(ii) 2 or more buildings if—
(A) the buildings are adjoining; or
(B) if the premises are owned by the one person—the buildings are separated by common areas or other areas owned by the owner or a road; or
(C) if the premises are not owned by the one person—the buildings are separated by common areas or a road;
(d) the cluster of premises is promoted, or generally regarded, as constituting a shopping centre, shopping mall, shopping court or shopping arcade.
If you have questions in relation to the retail shop leasing, please contact us.