Retail vs Commercial Leasing in NSW: What You Need to Know

Not sure whether your lease is retail or commercial? The difference matters more than most people realise—and getting it wrong can lead to disputes, compliance issues, or unenforceable lease terms.

This article breaks down what separates retail leases from standard commercial leases in NSW, and why it matters for both landlords and tenants.

Why It Matters

Retail leases in NSW are governed by the Retail Leases Act 1994, which offers extra protections for tenants—including rules around disclosure, costs, and lease registration.

If you treat a retail lease like a standard commercial lease (or vice versa), you could breach your legal obligations or end up with a lease that doesn’t hold up.

What to Understand

What Is a Retail Lease?

Retail leases typically apply to premises in a shopping centre or those used for certain kinds of retail businesses listed under the Act.

Examples:

• Café, hair salon, clothing store = retail lease

• Warehouse, office, manufacturing space = commercial lease

  
  

Extra Protections Under Retail Law

Retail leases come with legal obligations for landlords, including:

• A formal disclosure statement

• Limits on what you can charge tenants

• Cooling-off periods

• Lease registration requirements

  
  

| If you’re leasing a retail premises, make sure you understand your obligations before signing—or risk the lease being challenged later.

Misclassification Risks

If a lease is misclassified, you could:

• Miss required disclosures

• Invalidate clauses

• Face disputes over rent or lease terms

  
  

| A tenant could challenge the lease or walk away if it doesn’t meet legal standards.

How to Get NSW Retail Leases Right

Before signing any lease, confirm what category it falls into. Don’t rely on assumptions—or templates that don’t reflect current NSW law.

Wrap Up

A review by a leasing lawyer ensures the lease is fit for purpose and legally compliant.

More About Leasing

Book an Initial Chat