Commercial Leasing

A commercial lease is a long-term contract — typically three to six years — that determines what you pay, what you are responsible for, and what happens when things change. Whether you are a tenant looking for premises or a landlord bringing in a new occupier, the terms you agree to at the start will affect your business for years. We review, draft, and negotiate commercial leases every day, and we tell you in plain English exactly what you are agreeing to before you sign.

Who this is for

Tenants signing a new lease. The landlord or their agent has sent you a draft lease and you have a deadline to sign. Before you do, we read it thoroughly, explain what it means for your business, and tell you which terms are worth pushing back on. Most tenants leave money on the table during lease negotiations — a short review often recovers far more than it costs.

Landlords leasing out a property. You have a new tenant lined up and you want a lease that clearly sets out the rent, the obligations on each side, and what happens if the tenant defaults. We draft leases on the industry-standard ADLS Sixth Edition form and tailor the special conditions to suit your premises and your tenant.

Tenants exercising a right of renewal. Your initial lease term is coming to an end and your lease includes a right to renew for a further period. This is not automatic — it must be exercised correctly and within the time limits set out in your lease. At renewal, the rent is usually reviewed to market rates. We make sure the renewal is handled properly and that the rent review is done on terms that are fair. See our article on lease renewal vs lease extension for why the distinction matters.

Tenants assigning a lease. If you are selling your business and the premises come with it, the lease will almost always need to be transferred to the new owner. This requires the landlord’s written consent and a formal deed of assignment. We handle the consent application and the assignment documentation so the transaction can proceed smoothly.

Tenants and landlords in a rent review dispute. Most commercial leases include regular rent reviews, often to market rates. When the landlord and tenant cannot agree on the new rent, a registered valuer is appointed to determine it. If the parties still cannot agree after the valuation, the matter goes to arbitration. We advise on the review process, instruct valuers, and represent you in arbitration if necessary. See our article on commercial lease rent review mechanisms for how this works in practice.

Tenants subleasing surplus space. If you have more space than you need and want to recover some of the rent by letting part of your premises to someone else, your lease will dictate what is possible. We advise on whether a sublease or a licence to occupy is the right approach and handle the documentation. See how to sublease commercial property in NZ.

What we do

Lease drafting

We draft new commercial leases on the ADLS Sixth Edition form — the standard template used for most commercial leases in New Zealand — with bespoke special conditions that reflect the specific premises, the parties, and the transaction. Whether the premises is an office, a retail shop, a warehouse, a restaurant, or a medical suite, the same principles apply: the lease needs to be clear, balanced, and fit for purpose.

The key terms we draft carefully are:

• Term and renewal rights. How long the initial lease runs, how many times it can be renewed, when renewal options must be exercised, and what rent applies at each renewal.
• Rent review mechanism. Whether rent increases are fixed (for example, 3% per year), tied to the Consumer Price Index, reviewed to market rates at set intervals, or a combination. The right mechanism depends on the type of premises and how long the lease runs.
• Outgoings. The costs the tenant is required to contribute toward — things like building insurance, rates, and maintenance of common areas. We are clear about what is recoverable from the tenant and what stays with the landlord.
• Permitted use. What the tenant is allowed to use the premises for. This needs to be specific enough to protect the landlord’s interests but broad enough to allow the tenant to run their business without restriction.
• Make-good and reinstatement. What condition the tenant must leave the premises in at the end of the lease. This clause is often the source of disputes and unexpected costs at exit, so we get it right at the drafting stage.
• Personal guarantees. When the tenant is a company, the landlord will usually require the directors to personally guarantee the lease obligations up to a capped amount. We negotiate the cap, the duration, and the release conditions.

Lease review

If you have received a draft lease and need to understand what you are signing, we will read it in full and come back to you — usually within one to two business days — with a clear summary in plain English, a list of the terms we recommend you push back on, and practical guidance on what is realistic to negotiate. The things we look at most carefully are the make-good obligations, the rent review mechanism, the assignment and subletting restrictions, and any personal guarantee terms. See seven things commercial tenants should look out for for a summary of the most common issues we flag.

Renewals, extensions, and variations

If you want to extend your lease or change its terms — whether it is adjusting the rent, expanding into additional space, or varying the permitted use — we handle the documentation. A formal renewal (exercising an option to renew that is already in your lease) is different from an extension (agreeing a new term with the landlord), and each requires a different document. We make sure the right approach is taken and that any changes are properly recorded.

Assignments and surrenders

If you are transferring your lease to someone else as part of a business sale, we prepare the deed of assignment and manage the landlord’s consent process. If you are walking away from your lease early by mutual agreement with the landlord, we prepare a deed of surrender that clearly sets out what is owed and releases both parties from their obligations. We have handled hundreds of both, and we know what landlords typically require before they will agree.

Subleases and licences to occupy

A sublease creates a new tenancy between you and an occupier taking space within your leased premises. A licence to occupy is a simpler arrangement that grants someone permission to use the space without giving them the same legal rights as a tenant. Both require the landlord’s consent under most leases, and each has different implications for rent, GST, and liability. We will tell you which approach is appropriate for your situation and prepare the documentation.

Disputes and enforcement

If your tenant has stopped paying rent, is in breach of a lease condition, or is refusing to vacate at the end of the term, we advise on the steps available to you under the Property Law Act and under the terms of the lease. If you are a tenant dealing with a landlord who is refusing to provide consent unreasonably or is not maintaining the premises as required, we advise on your rights and correspond with the landlord on your behalf. We pursue resolution efficiently and without unnecessary cost. See ending a commercial lease agreement for the standard exit routes.

Process and timeline

What it costs

Fixed fee, quoted up front. No hourly billing on routine lease work.

What happens next

Send us the lease draft, or tell us about the premises and the terms being discussed. We will reply promptly with a fixed fee quote, an estimate of how long the work will take, and any initial observations on what we can already see in what you have sent.

Insights

Related reading

Leasing·7 May 2026

Make-Good Obligations at the End of a NZ Commercial Lease: How to Avoid the Lease-End Bill

Make-good clauses in NZ commercial leases routinely produce five and six-figure bills at lease end. Here is what reinstatement actually requires and how to limit it.

Leasing·7 May 2026

Personal Guarantees in NZ Commercial Leases: What Directors Need to Know Before Signing

Most NZ commercial leases ask directors to sign personal guarantees alongside the company. Here is what they actually bind you to and how to negotiate them down.

Leasing·5 February 2024

Commercial Lease Rent Review Mechanisms in New Zealand: Insights on Rent Reviews and Ratchets

Understand fixed, CPI, and market rent reviews in NZ commercial leases — including ratchet clauses, the arbitration process, and the ADLS Sixth Edition framework.