Commercial Leases: Clauses That Commonly Decide the Deal

Overview

A commercial lease is a risk allocation instrument. The lease terms will typically govern occupancy cost, flexibility, and exit risk for the duration of the term.

High-impact clauses

• Repair and condition: FRI obligations, schedules of condition, reinstatement duties.
• Service charge: what is recoverable, caps, management provisions, reserve funds.
• Rent review: mechanism, assumptions/disregards, and timing.
• Use and alterations: permitted use, change-of-use controls, fit-out restrictions.
• Alienation: assignment, underletting and sharing occupation provisions.
• Break rights: notice requirements and conditions (often strictly enforced).

Landlord and tenant priorities

• Landlords often focus on income certainty and asset protection.
• Tenants often focus on flexibility, cost control, and exit routes.

How Royce Legal can help

Royce Legal can advise on negotiation priorities, draft and revise clauses, and ensure the final lease reflects commercial expectations and reduces later dispute risk.