Does the length of a commercial lease matter? Absolutely! But not in the way people expect it to.
It is crucial that a commercial lease is as short as possible otherwise prospective tenants will be intimidated by the sheer number of pages.
Some lawyers achieve this by simply cutting content. But this can lead to problems along the line. For example, what happens if you decide to strata the land, but the usual provisions in the lease relating to strata are removed?
What happens if the bank guarantee clause was removed in favour of a security deposit or bond, but upon an assignment of the lease, you want the new tenant to switch to a bank guarantee?
In these situations –and many more – you need to vary the lease to include new clauses. This not only incurs legal costs but also requires buy-in from the tenant. Will the tenant agree?
Simply cutting content is not the solution. The wiser approach is to draft the lease properly with more plain English, less repetition and more consistency. This allows for more content but with fewer pages.
If you require a lease that doesn’t need to sacrifice content, contact us on 0408 954 570 or at firstname.lastname@example.org.
Keep an eye out for further articles. Please note that this article does not contain legal advice. Please obtain independent legal advice to address your specific situation.