Blog & Insights

In Victoria, a lease falls under the Retail Leases Act 2003 (Vic) if the premises are used wholly or predominantly for selling or hiring goods or providing services to an "ultimate consumer" (including many business-to-business services). Non-retail commercial or industrial leases (like warehouses or standard offices) have far less statutory oversight, meaning almost all terms are completely open to negotiation between the landlord and tenant.

If the lease falls under the Victorian Retail Leases Act, the tenant is legally entitled to a minimum term of 5 years (which can be a combination of the initial term and options to renew). If the tenant wants a shorter lease, they must get a formal waiver from the Victorian Small Business Commission (VSBC) before signing. For standard, non-retail commercial leases, there is no legal minimum term.

It depends entirely on the type of lease. Under the Retail Leases Act 2003 (Vic), landlords are legally forbidden from recovering Land Tax from retail tenants. However, for standard non-retail commercial or industrial leases, landlords can—and usually do—negotiate to pass 100% of the property's Land Tax on to the tenant as part of the operational outgoings.

No. Unlike residential property transactions, there is no statutory cooling-off period for commercial or retail leases in Victoria. Once both parties sign the lease agreement, it is immediately legally binding.

Beyond checking the Section 32 Vendor Statement (which outlines titles, covenants, and easements), you must perform a thorough check of the local council's planning scheme zoning to ensure your intended business (or a future tenant's business) is a "permitted use." You should also structurally audit the building's compliance with fire regulations and Essential Safety Measures (ESM), check environmental contamination risks, and review any existing lease terms.

Generally, yes—GST of 10% applies to the sale of commercial property. However, if the property is currently tenanted and being sold with the active lease intact, it can often be classified as a "Going Concern," making the transaction GST-free. Alternatively, the Margin Scheme may be used to lower the GST payable if specified in the contract. Always consult your accountant before signing.

In Victoria, commercial and retail lease disputes cannot go straight to court. For retail leases, parties must first lodge a dispute with the Victorian Small Business Commission (VSBC) for low-cost mediation. If mediation fails, or if it is a standard commercial dispute that falls within their jurisdiction, the matter can progress to the Victorian Civil and Administrative Tribunal (VCAT) for a binding legal ruling.

WALE stands for Weighted Average Lease Expiry. It is a metric used to measure the vacancy risk of a commercial property with multiple tenants. It calculates the average remaining lease term across the entire building, weighted by either the rental income each tenant pays or the total square meters they occupy. A high WALE (e.g., 5+ years) indicates strong, stable rental security.

Net yield represents your actual annual return on investment after operational costs. It is calculated by taking the annual rental income, subtracting all landlord-paid outgoings (like council rates, insurance, and maintenance), and dividing that number by the total purchase price of the property. The formula looks like this: Net Yield = ((Annual Rental Income - Annual Outgoings) / Purchase Price) x 100.

While you can self-manage, a property manager ensures strict compliance with Victoria’s Occupational Health and Safety Act 2004 and Essential Safety Measures (ESM) audits. They handle complex lease enforcement, coordinate specialized industrial maintenance, and manage tenant logistics, protecting your asset's valuation while saving you time.

The landlord is responsible for structural maintenance, including the foundation, external walls, roof, and base building compliance. The tenant is typically responsible for internal fit-outs, operational wear-and-tear, and servicing specific equipment like roller doors, loading docks, and cranes as outlined in the lease.