Leasing a Strata Property in NSW: What Business Tenants Need to Know
- JLAJLA
- Apr 20
- 3 min read
Intro
Found the perfect office or shopfront—but it’s part of a strata building? Before you sign the lease, there are a few extra layers you’ll want to look at.
This post outlines the key legal issues when leasing commercial space in a strata property, so you don’t get caught by restrictions, shared costs, or hidden approvals later.
Why It Matters
Leasing in a strata building isn’t quite the same as leasing a standalone site. Strata schemes have their own rules, costs, and decision-makers—and ignoring them can cause real delays and disputes.
From signage limits to renovation restrictions, shared maintenance to surprise levies, tenants often learn about these the hard way—after they’ve signed.
What You Need to Know
You’re Leasing From the Owner—But There’s a Third Party Involved
You’ll be leasing from the individual lot owner—but the strata scheme (run by the owners corporation) still controls the common property and enforces the building’s by-laws.
This means your lease might be legally sound—but still unworkable if the by-laws prevent key parts of your fitout or business use.
Always check:
The strata by-laws
Any exclusive use or licence arrangements for parking or signage
If owners corporation consent is needed for your fitout or use
Fitout and Use Restrictions
Want to install signage, air conditioning, or kitchen facilities? In many strata buildings, you’ll need approval from the owners corporation—and that approval isn’t always guaranteed.
Even the permitted use of the lot might be narrower than you expect. For example, “retail” might not include a café if it involves cooking or additional plumbing.
Always clarify:
What’s covered in your lease
What approvals you’ll need (and who’s responsible for getting them)
Who pays to reinstate the lot at lease end
Shared Costs and Strata Levies
In a freestanding property, you can usually negotiate outgoings directly with the landlord. In a strata property, some costs are set by the strata scheme—and passed through to the tenant.
That can include:
Cleaning of shared areas
Building insurance (not contents)
Repairs to lifts or car parks
Special levies for upgrades or emergency works
| Worth Knowing: A landlord can’t recover levies that aren’t permitted under the lease terms—but many commercial leases pass these through by default. Read the outgoings clause carefully.
Commercial Insight
Strata leases can be excellent value—but the true cost and flexibility often depend more on the strata scheme than the landlord.
If your business needs visibility, signage, long hours, or specific infrastructure, check these early—not after the lease is signed. You may also want to negotiate a clause that makes lease obligations conditional on owners corporation consent.
And if you’re planning a long-term lease or investing in fitout, it’s worth reviewing the strata records—just like a buyer would. Levies, minutes, and planned works can give insight into upcoming risks.
What to Do Next if you are Considering Leasing a Strata Property for your Business
Ask the landlord for the current by-laws and strata plan
Clarify whether your use, signage, and fitout require approval
Have the outgoings and reinstatement clauses reviewed
Consider requesting a strata records inspection before signing
These extra checks don’t need to slow things down—but they can save you serious time and money later.
Closing Wrap
Leasing in a strata building comes with extra moving parts. I help tenants and landlords negotiate clear, workable leases that line up with the rules on the ground. If you're leasing strata commercial space and want to make sure the deal actually works, let’s talk before you sign.
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