Letter · Commercial Property & Leasing

Letter of advice to a tenant on a proposed commercial or retail lease (NSW)

Advice letter to a tenant on a proposed NSW commercial or retail lease: key terms table, cost of occupancy, risk clauses (make good, relocation, demolition, assignment, guarantees), statutory protections and recommended amendments.

Kind
Letter. A letter or email you adapt and send.
Where it applies
New South Wales
AI use
Yellow AI can help in set ways. A lawyer checks specific points before use.
Law stated as at
17 October 2026
Status
Maintained. Checked against the cited sources on 17 October 2026.
Version
1
Source
Written for this library

When to use it

Use after reviewing the landlord's draft lease, disclosure statement and heads of agreement and before the tenant signs. Adapt for industrial and office leases where the Retail Leases Act does not apply.

How AI may be used

AI may extract the key terms table and draft explanations; the lawyer checks each clause reference and decides which risks matter and what to negotiate.

AI may

  • Extract rent, reviews, outgoings, term, options, make good, relocation, demolition, assignment and default clauses into the tables, with clause numbers.
  • Compare the draft lease against the heads of agreement and disclosure statement and list differences.
  • Draft a plain-English summary of each clause for the lawyer to edit.

AI must not

  • Must not decide whether the Retail Leases Act applies.
  • Must not recommend amendments or rank risks without lawyer review.
  • Must not calculate total occupancy cost as advice without the lawyer checking the inputs.

The lawyer checks

  • Clause references and figures checked against the final draft.
  • Option exercise windows and critical dates confirmed and diarised.
  • Guarantee and security terms explained to each guarantor, who has been told to get separate advice.

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Read the full text

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