Is your Queensland lease a Retail Shop Lease?


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 J J Riba & Co
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.

8 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 1 lessor or head lessor, or, if the premises
were leased, would have the 1 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 1
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 1
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.

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About jjriba

Joseph Riba is an Australian Business lawyer. Joseph Riba has worked for more than a decade in the franchising industry. He was admitted as a lawyer in Queensland Australia in 1993 and commenced J J Riba and Company Commercial Lawyers in 1998. Between 1999 and 2010 Joseph Riba worked for a National Franchise System known as Bright Eyes. J J Riba and Company have developed structures and systems to help small business owners carry out their plans to expand their business interests using franchising. J J RIba and Company are developing new systems to assist their clients avoid risk and achieve results for small business owners without the expense associated with large firm advice. J J Riba and Company aim to use their knowledge of franchising and business law to provide high level advice at an affordable cost. View all posts by jjriba

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