Retail V Commercial lease: Who pays costs?
Commercial Lease
Commercial Leases are less regulated than Retail Leases as they have no state-based legislation and are defined as any business not supplying a product and also not included in the below list. Within this kind of lease there is not requirement for a disclosure statement, meaning the Lessor is not legally required to inform the Lessee about any particulars or outgoings that may arise from leasing the premises.
Within a Commercial Lease the Lessee pays not only the Lessors Legal cost but also their Solicitors costs as well.
Retail Lease
A retail lease is a leasing of a premises were the outcome will be the trading of goods. Retail leases are more common than Commercial Leases and are more regulated also. When entering into a Retail Lease agreement the Lessor will pay the Lease preparation fees, while the Lessee will pay their own solicitors fees. Within these matters the costs are generally higher, this is because it is requirement to prepare a disclosure statement, which must be served on the Lessee at a minimum of seven days before the commencement of the lease. This disclosure statement is imperative as this document outlines any particulars of the lease including any outgoings payable by the Lessee and the average costs of outgoings annually.
Business that fall under the category of a retail lease are outlined in the Retail Leases Act 1994- Schedule 1.
The following business are classified as retail lease under the aforementioned Act;
Adult books and toy shops
Aged care product shops
Amusement and entertainment services
Antique shops
Art galleries
Art supplies shops
Arts and crafts shops
Baby supplies shops
Bakeries or bread shops
Balloon shops
Bar accessories shops
Barbecue equipment shops
Barbers
Batteries shops (other than motor vehicle batteries)
Beach wear shops
Beauticians
Beauty shops
Beauty therapists
Beer, wine and spirit shops (except where goods are for consumption on the premises)
Bicycle accessories shops
Bicycle shops
Biscuit bar shops
Bookshops
Boot and shoe repairers
Bridal wear sales and hire shops
Building supplies shops
Business machines and equipment shops
Butcher shops
Cake shops
Camping equipment shops
Candle shops
Cards shops
Carpet shops
Chandler shops
Cigarette shops
Clock shops
Coffee, tea and other non-alcoholic beverage shops
Coins and coin collections shops
Comic shops
Confectionery shops
Convenience food shops
Cookie shops
Cosmetics shops
Costumes and formal wear hire shops
Curtain shops
Delicatessen shops
Department stores
Dinnerware shops
Disposals shops
Drapery shops
Dry cleaners, collection centres for dry cleaning or laundry services
Duty free shops
Electrical appliance shops
Electronic equipment and supplies shops
Engravers
Equestrian wear shops
Equipment hire shops
Fairy shops
Fast food shops
Fast-photo processors
Firearms shops
Flag shops
Floor covering shops
Florist shops
Flower shops or allied goods and services
Fruit and vegetable shops
Fruit juice shops
Funerary goods shops (incense, joss sticks)
Furniture shops
Games and hobbies shops
General stores
Gift shops
Gift-wrapping shops
Golf equipment shops
Greengrocer shops
Grocery shops
Haberdashery shops
Hairdressers
Hardware shops
Health food shops
Hearing aid shops
Hot water system shops
Household appliance and house appliance repairs shops
Household fixtures and fittings shops
Ice cream shops
Interior decoration shops
Internet cafes
Jewellery shops
Key cutting shops
Kitchenware shops
Knick-knack shops and novelties shops
Leather goods shops
Lighting shops
Linen shops
Lingerie shops
Lottery agencies
Manchester shops
Map shops
Martial arts supplies shops
Mixed business shops
Motor vehicle and motor cycle accessories shops (excluding tyre shops and batteries shops)
Music or musical equipment shops
Nail bars
Newsagency shops
Nut bar shops
Office equipment shops
Optical goods or services shops
Optometrists
Organ shops
Paint and paper shops
Party shops
Patisserie or pastry shops
Pawnbroking shops
Perfume shops
Pet shops, pet grooming and supplies shops and aquarium shops
Pharmacy shops
Photocopy shops
Photographic equipment and supplies shops
Picture frames shops
Plumbing supplies shops
Pools and spas shops
Poultry shops (fresh, frozen, cooked)
Precious stones shops
Prints and posters shops
Religious goods shops
Restaurants, cafeterias, coffee lounges, food courts and other eating places
Retail post offices
Rubber stamp supply shops
Seafood shops
Second-hand goods shops
Sewing machine shops (sewing materials, needlepoint and craft-related items)
Shoe and boot repair shops
Shoe shops
Shops selling or engaged in providing any one or more of the following goods or services in relation to any person: accessories, baby wear, bags, caps, clothing, clothing alterations, underwear or sunshades
Shops selling or renting any one or more of the following goods: cassettes, musical instruments, pre-recorded tapes, records, video tape and pre-recorded music libraries downloading, CDs, DVDs or other like products
Shops selling or renting any one or more of the following goods: telecommunication (mobile phones or services), televisions, videos, home entertainment systems, software, electronic games, computers or computer products or household appliances
Silverware shops
Sleepwear shops
Smallgoods shops
Snack bars
Soft drink shops
Soft furnishing shops
Souvenir, trophy and memorabilia shops
Specialised food shops
Sporting goods shops
Stamps and stamp collection shops (whether for purchase or sale or both)
Stationery shops
Supermarkets
Surfboard shops
Surfing accessories shops
Takeaway food shops
Tobacconist shops
Toy and game repair shops
Toy shops
Travel agency or travel services
Umbrella shops
Underwear shops
Variety stores
Vitamin shops
Wall decorations shops
Watch shops
Water filter shops
Wig shops
Writing materials shops
Any other business as from time to time may be prescribed by the regulations.
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