CommercialLeaseAgreements
Negotiation, drafting, and review of commercial leases, lease renewals, rent reviews, and landlord-tenant disputes in Auckland.
How we can help
A commercial lease is often one of the largest ongoing financial commitments a business makes. Whether you are a tenant signing your first lease for a retail premises in Botany, a landlord leasing out a commercial building, or a business negotiating a lease renewal in South Auckland, Indus Legal ensures you understand your obligations and that the lease terms are fair and commercially sound. We act for both landlords and tenants across the Auckland region.
Most commercial leases in New Zealand are based on the Auckland District Law Society (ADLS) standard form deed of lease, but the terms are heavily negotiable. We review and negotiate key provisions including rent and rent review mechanisms, outgoings contributions, maintenance and repair obligations, make-good clauses, assignment and subletting rights, default and termination conditions, and any special conditions specific to your business. We also advise on the implications of the Property Law Act 2007 as it relates to commercial tenancies.
When disputes arise between landlords and tenants - whether over rent reviews, maintenance responsibilities, or alleged breaches - our team provides pragmatic advice aimed at resolving matters efficiently. Where necessary, we represent clients in negotiations, mediation, or before the courts to enforce their rights under the lease.
What we help with
- Reviewing and negotiating new commercial lease agreements for landlords and tenants
- Lease renewals, right of renewal negotiations, and rent review processes
- Advising on outgoings, maintenance obligations, and make-good clauses
- Assignment, subletting, and change of use provisions
- Landlord-tenant dispute resolution, including breach notices and remedies
- Advising on lease implications during business sales and acquisitions
Frequently asked questions
What should I check before signing a commercial lease in New Zealand?
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Before signing, you should carefully review the lease term and renewal rights, the rent and rent review methodology (market, CPI, or fixed increases), your obligations for outgoings and maintenance, any personal guarantee requirements, make-good obligations at the end of the lease, and the conditions for assignment or subletting. You should also check whether the permitted use aligns with your business activities and whether resource consent or building consent is required. Indus Legal reviews every clause to protect your position.
Can my landlord increase the rent during a commercial lease?
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Rent can only be increased in accordance with the rent review provisions specified in the lease. Common mechanisms include review to market rent (determined by agreement or independent valuation), CPI-based adjustments, or fixed percentage increases. If you disagree with a market rent review, the ADLS deed of lease provides a process for determination by an independent valuer or arbitrator. We advise tenants and landlords on their rights during rent review processes and negotiate fair outcomes.
What happens to a commercial lease when a business is sold?
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If you are selling your business and it operates from leased premises, the lease will typically need to be assigned to the purchaser. Most commercial leases require the landlord's consent to assignment, which cannot be unreasonably withheld. The landlord may impose conditions such as requiring the new tenant to provide a personal guarantee or bank guarantee. It is important to address the lease assignment early in the sale process, as delays in obtaining landlord consent can hold up settlement. Our Auckland team coordinates this as part of the business sale process.
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