Let’s be real, leasing a shop can be overwhelming. It’s one of the biggest financial commitments you’ll make when setting up a shop, and yet many retailers walk in trusting all the wrong people.
I’ve worked in retail fitouts in Brisbane and tenancy coordination for years, and I’ve seen too many shop owners caught out by hidden costs, vague promises, and contracts designed to favour the landlord.
Today, I want to share some leasing truths no one tells you, so you can avoid costly mistakes, negotiate smarter, and secure a lease that works for you.
Truth #1: The Leasing Agent Isn’t Your Friend
Leasing agents are great at what they do, but their job isn’t to help you. Their role is to secure the best deal for the landlord.
You might feel like you’ve built a great relationship, they’ll be warm, welcoming, and excited to chat about what you could do with the space. But remember, they don’t work for you.
How This Plays Out:
- They might downplay potential issues, like hidden fitout costs buried in a shopping centre fitout guide.
- They may rush you into signing before you’ve done due diligence.
- They could promise things verbally, then those promises never appear in the lease.
Smart Move:
Get everything in writing. If the leasing agent offers incentives, like rent-free periods or fitout contributions, make sure they’re clearly documented in the lease.
Truth #2: Verbal Agreements Mean Nothing
I’ve lost count of how many retailers have told me,
"But the leasing agent said…!"
Unfortunately, if it’s not written into your lease, it doesn’t exist.
Real Example:
A retailer I worked with was verbally promised free staff parking. Once their shop fitout in Brisbane was complete and they opened, they learned they’d have to pay thousands in parking fees each year, because it wasn’t in the lease.
Smart Move:
- Take notes after every conversation.
- Follow up with confirmation emails.
- Make sure every agreement is added to the lease.
Truth #3: Your Lease Covers More Than Just Rent
Many retailers focus on the monthly rent, but your lease includes far more, and some clauses could cost you a fortune.
Here’s what to watch for:
Outgoings & Fees: Some leases include marketing levies, cleaning, or even a tenancy coordination fee.
Make-Good Clauses: You may be required to return the shop to its original state, meaning ripping out your entire retail fitout at your own cost.
Relocation & Refurbishment Clauses: Some landlords can move your store or require costly refurbishments during your tenancy.
Extra Documents: Your lease might reference a Fitout Guide, House Rules, or Centre Guidelines. These may not be attached to the lease, but they’re still binding.
Why This Matters:
- A Fitout Guide might impose design restrictions that increase your fitout costs.
- House Rules could limit signage, music, or trading hours.
- Centre Guidelines might require upgrades before opening.
Smart Move:
- Request every document referenced in your lease before signing.
- Have a retail lease expert or tenancy coordinator review the complete lease package.
- Clarify all costs and obligations upfront.
Truth #4: The Landlord’s Timeline Doesn’t Have to Be Yours
Leasing agents might pressure you to sign quickly, but rushing can set you up for failure.
Before signing, you need to:
- Confirm your opening timeline, remember, your rent starts when your lease starts.
- Ensure you can access the tenancy to begin your shop fitout in Brisbane.
- Allow enough time for design, approvals, and construction.
Smart Move:
- Negotiate a rent-free fitout period.
- Don’t let anyone rush you, taking extra time upfront can save thousands later.
Truth #5: You Can (and Should) Negotiate
Many retailers don’t realise most lease terms are negotiable. Landlords expect you to negotiate, so if you don’t, you could be missing out on significant benefits.
What You Can Negotiate:
- Rent-Free Periods, to offset retail fitout costs.
- Landlord Contributions, towards construction or design.
- Better Lease Terms, like reduced security deposits or fairer renewal clauses.
- Exclusivity Clauses, to prevent a direct competitor setting up next door.
Smart Move:
- Always ask for better terms, the worst they can say is no.
- Research comparable leases in Brisbane retail precincts.
- Get expert advice, negotiating with experience can save thousands.
Takeaways: What to Do Before You Sign Your Lease
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The leasing agent works for the landlord, not for you.
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If it’s not in writing, it doesn’t exist.
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Your lease covers more than just rent, review every clause carefully.
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Don’t rush, make sure the timeline works for you.
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Negotiate, you could save thousands just by asking.
Need help reviewing your lease? Download my Free Property Brief Checklist
Got questions? Get in touch — I’d love to help!