Entering a Commercial Lease

If you are looking to enter into a Commercial Lease, getting it right from the start can help avoid problems further down the track. While we recommend you discuss your lease requirements with your lawyer, here are a few common points to think about.


Commercial leases are often drafted on an Auckland District Law Society (ADLS) Agreement to Lease Form. This form implies its terms from a much larger and longer ADLS Deed of Lease. As a Landlord or Tenant you should be aware of what is included in the longer form and negotiate on the basis of those terms.


The standard lease provides for the tenant to pay an excess of up to $2,000.00. If the excess is more than this the lease should reflect this otherwise the Landlord could end up paying some of the excess for damage caused by the Tenant.

Tenant fit out

If changes are being made to the leased area i.e. addition of walls, installation of heat pumps by a tenant, these are required to be removed on exit. It’s a good idea to set them down now and negotiate if those changes are to stay at the end of the term.

Premise Condition Report

It’s important to have a record of what the condition of the premise was a the time of entry into a lease. It becomes especially important if the Landlord sells the property, and the new owner does not have first hand knowledge of the condition of the premise at the time the Lease was entered into.