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Tenants’ make good obligations at end of lease — specific to industrial and retail premises

This guidance note provides expert insight into tenants’ make good obligations for industrial and retail premises, a critical area for landlords and tenants navigating lease terminations. It highlights significant legal considerations, including practical challenges unique to these premises types. Practitioners must understand the nuanced obligations that affect lease negotiations and end-of-lease processes.

Topics Covered

  • Tenants’ make good obligations at end of lease
  • “Make good” of industrial premises
  • “Make good” of retail premises
  • Relocation clauses in retail leases
  • Demolition clauses in retail leases

Essential Insights

  • Consider financial risks landlords face when tenants leave heavy machinery behind without adequate security.
  • Evaluate repair responsibilities for industrial floors and the implications of load limits and damage thresholds.
  • Understand how environmental “make good” obligations intersect with Australian standards and contamination legislation.
  • Recognise statutory restrictions on landlords recovering capital costs from retail tenants under various state laws.
  • Navigate complexities of relocation and demolition clauses to protect tenant interests at lease end.

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