We get this question a lot and it’s a tough one to answer! Not because we can’t – it’s just difficult to answer such a general question. There is no hard and fast answer to this question as it will depend on a large number of factors. In addition to rent, there are all sorts of costs that you would have to incur when you enter into a Retail Lease. These are both ongoing or one-off. Generally however you would incur the following outgoings:
- Water Rates
- Local Council Rates
- Land Tax
- Electricity Rates
- Local Council Parking Levies (if premises offer council parking)
- Local Council Outdoor Seating License (if premises have outdoor seating)
- Public Liability Insurance
- Glass Replacement Insurance
- Building Administrative and Maintenance Fees(if premises is part of strata)
- Marketing Fees (if premises is part of a larger shopping complex)
Outgoings will change depending on:
- Floor space
- Value of the premises
- Equipment on the premises
- What you are doing
The above is a non-exhaustive list of matters. As stated there is no hard and fast answer to “what is expected” and “how much” it is expected to cost as these matters will change depending on where you want to lease. This is a matter for homework and you’ll likely get these answers once you’ve properly investigated the location of where you want to lease. But this isn’t a chicken and egg dilemma – in NSW the Retail Leases Act says that the landlord of retail premises must issue a “disclosure statement” to all potential lessees that sets out what these costs are before the lessee enters into the lease agreement.
Retail Leases can be complex – if you are entering into one, give us a call and we’ll guide you through the process and assist you with your transaction.
Why choose Phang Legal for your business?
There are many lawyers and law firms to choose from, but it can be challenging to make the right choice. At Phang Legal we are dedicated to serving other business in the best way possible – after all, we know what it is to run business and to be a consumer of professional services ourselves. We appreciate the value of professional advisers who can provide the right service at the right price and we aim to be what we expect most. We deliver nothing less and we think you should expect nothing less.
With our offices conveniently located in Parramatta, the geographic centre of the Sydney metropolitan area, our lawyers assist businesses from across all suburbs of Sydney and beyond.
Associate Solicitor – Sydney