Sam Saad

And the second types of leases are commercial unregulated leases, which are usually industrial and commercial office leases.

Retail leases are usually for tenants that predominantly sell retail goods, and they're usually a lot more protective for tenants.

You know, the Retail Leases Act in each of the respective states has been introduced to cover off those tenants and to assist them to not have powerful landlords take over their premises and take control of their businesses.

And, you know, there's specific lists of tenancies that fall within this list that are protected tenants.

On the other hand, you've got commercial leases which are known as unregulated leases and they usually cover the remainder of leases such as commercial offices, you know, industrial warehouses, large shopping centres.

Usually, you know, large landlords such as Woolworths, etc.

don't need that Retail Leases Act protection.

Yeah, that's right.

One of the things that a lot of parties can overlook is the options under a lease.

An option is a key part of a lease because the lease term is usually what banks lend on and look at to understand the strength of a property when you're buying it and when they're lending.

One of the most important things is an option and whether it's been exercised under release.

Sometimes people miss that because a date expires and either the option has or hasn't been exercised and the courts take a very strict view at how options are exercised and looking at that.

If an option lapses, that time frame is gone.

You either have to negotiate a new lease or enter into a new lease rather than just simply exercise that option.

If a tenant's missed it or a landlord's missed it, that's the end of it.

It's important to make sure that's looked at carefully.

Well, if you miss it, you basically lose your rights as a tenant in the property.

If you have a multimillion-dollar business that's sitting there, then you've effectively lost your further five years and you have to relocate your business.

It could be a huge cost to a tenant and also a loss of security for the landlord.

Yeah, Craig, you're right.