Commercial leasing for hospitality venues presents challenges that generic commercial lawyers often miss. Your lease isn't just about rent. It determines whether you can extend trading hours, install extraction systems, or transfer the business when you're ready to sell.
Permitted Use Clauses
A restaurant lease that doesn't permit bar service limits your revenue potential. A cafe lease without takeaway rights restricts your business model. We ensure your permitted use clause covers everything you need to operate profitably, including future pivots you might not have considered yet.
Fit-Out and Make-Good Obligations
Hospitality fit-outs are expensive. Kitchens, extraction, cool rooms, bar equipment. Your lease must protect that investment. We negotiate terms that allow you to retain fit-out value and limit make-good obligations at lease end. Some landlords demand full strip-out. Others accept the fit-out as a benefit. The difference can be hundreds of thousands of dollars.
Trading Hours and Noise
Landlords and body corporates often impose restrictions that conflict with hospitality operations. We identify these issues before you sign. If your business model requires late-night trading, your lease must explicitly permit it. Verbal assurances mean nothing when a strata committee complains about noise.
Assignment Rights
Most hospitality businesses are sold as going concerns. Your lease must allow assignment without unreasonable conditions. We negotiate assignment clauses that protect your ability to sell the business and release you from ongoing guarantees. Restrictive assignment terms can make your venue unsaleable.
Rent Structures and Outgoings
Base rent is just the start. Outgoings, marketing levies, percentage rent and annual increases add up quickly. We analyse the total cost of occupancy and negotiate caps where possible. Many landlords include outgoings that shouldn't apply to your tenancy. We challenge them.
Liquor Licence Considerations
Your liquor licensing obligations interact with your lease. Planning permit conditions, noise limits and trading hours must align. We coordinate with our liquor licence team to ensure your lease supports your licence application, not undermines it.
As part of Sutton Laurence King Lawyers, we bring commercial law depth to every lease negotiation. We've acted on hundreds of hospitality transactions across Melbourne and Victoria. That experience translates into better outcomes for your business.
