Commercial lease lawyer: what it costs and how to choose one

A commercial lease lawyer reads your business lease before you sign it. They flag clauses that could lock you in or cost you money later. If you run a shop, cafe, clinic or agency in Australia, the right legal help can mean the difference between a rent you can manage and a multi-year liability you cannot exit.

Key takeaways

• A commercial lease lawyer reviews rent reviews, outgoings, make good obligations, bank guarantees, personal guarantees, break clauses and termination rights.
• Costs vary by lease length, property type, scope of work, urgency and the solicitor's experience. Ask for a fixed fee upfront.
• Ask for caps on personal guarantees, clear make good limits and break clauses that depend only on proper notice and rent paid.
• An AI contract check can spot risky clauses before you spend money on a lawyer, but it is not legal advice.
• Check the rules where you are, because lease and contract rules differ by state and territory.

What does a commercial lease lawyer actually do?

A good commercial lease lawyer reads the lease from your side as the tenant. They check rent reviews, outgoings, make good obligations, bank guarantees, personal guarantees, break clauses and termination rights. They tell you which clauses are standard, which are negotiable, and which are worth walking away from.

They should not simply say whether a clause is enforceable. Lease and contract rules differ by state and territory, and enforceability depends on the facts. A useful review gives you plain-English explanations and a list of changes to ask the landlord for.

Imagine you sign a cafe lease and later find you owe for a new roof you did not know about. That is what happens when outgoings are not checked early.

A lease might say: The Tenant must pay all outgoings including landlord insurance, management fees and capital works. A lawyer should explain what outgoings means in your state, whether capital works should be excluded, and how to ask for a cap or an audit right.

Another common clause is: The Tenant must make good the premises to the landlord's satisfaction at the end of the term. That is vague and expensive. A fair version limits make good to the condition at the start of the lease, recorded with photos or a schedule of condition, and excludes fair wear and tear and the building structure.

How much does a commercial lease lawyer cost?

There is no fixed price for a commercial lease review. Costs vary widely based on several factors.

Lease length and complexity. A short cafe lease with standard terms takes less time than a 10-year retail lease with rent reviews, fit-out contributions and relocation clauses.

Property type. Retail leases often have extra disclosure requirements under state retail shop laws. Commercial office or warehouse leases may have fewer statutory protections but more negotiable terms.

Scope of work. A simple review and advice letter costs less than full negotiation with the landlord's solicitor, or drafting a deed of guarantee.

Urgency. A review needed in 48 hours usually costs more than one with a standard turnaround.

Location and experience. A solicitor in a major city with years of leasing experience typically charges more than a general practitioner in a regional town.

Price ranges are typical and variable, not quotes. Some lawyers charge a flat fee for a lease review, while others bill by the hour. Ask for a fixed fee upfront so you know what you are paying before work begins.

How do I choose a commercial lease solicitor?

Watch for these signs that a lawyer may not be the right fit.

They do not specialise in leases. A general solicitor who handles wills and conveyancing may miss lease-specific risks such as rent review methods or make good standards.

They cannot give examples. If they cannot show you real lease wording or explain what a bank guarantee is in a commercial lease context, dig deeper.

They promise outcomes. No solicitor should guarantee that a landlord will remove a clause or that you will win a dispute. Negotiation depends on the landlord and the market.

They push you to sign quickly. A good lawyer gives you time to understand the risks and decide.

They do not explain costs. If you cannot get a clear fee estimate or scope of work, ask someone else.

What should I ask a commercial lease solicitor before hiring?

Use these questions when speaking with a commercial lease lawyer or solicitor.

How many commercial leases have you reviewed for businesses like mine?

Do you offer a fixed fee for the review, and what is included?

Will you review the lease from the tenant's perspective, not just summarise it?

Can you explain the rent review, outgoings and make good clauses in plain language?

Will you help me draft changes to send to the landlord?

Do you understand the retail lease rules in my state or territory?

If I need to negotiate with the landlord's solicitor, can you handle that, and what does it cost?

These questions help you compare lawyers and avoid surprises later.

AI check versus lawyer review

Some owners use an AI contract check before deciding whether to hire a lawyer. AxiomRisk reads your uploaded lease, MSA, SOW or client contract and quotes risky sentences word for word from your file, explains why each one matters, and suggests what to ask the other side. It is not a law firm and does not give legal advice.

An AI check is useful for spotting auto-renewals, rent review traps, unlimited personal guarantees and vague make good clauses before you spend money on a lawyer. It can also help you walk into a lawyer's office knowing which clauses matter. For high-stakes leases, especially those with a personal guarantee, a long term or material rent, a lawyer is still the right choice.

How to get out of a personal guarantee on a commercial lease

A personal guarantee makes you personally liable for the lease if your business cannot pay. Landlords often ask for one when the tenant is a new company or the rent is large.

You cannot simply remove it after signing unless the landlord agrees. Before you sign, ask for a cap, for example six to 12 months of rent, an end date after which the guarantee falls away, or a larger bank guarantee or deposit instead. If the guarantee is already signed, ask the landlord to release or reduce it when you renew, refinance or sell the business. Any change should be in writing.

If you are asked to sign an unlimited personal guarantee, have a lawyer review it first. This is one of the highest-risk clauses in a commercial lease.

What is a bank guarantee for a commercial lease

A bank guarantee is a promise from your bank to pay the landlord a set amount if you breach the lease, usually for unpaid rent or make good costs. It is common in commercial leases and is often set at a few months of rent, for example three to six months plus outgoings, though amounts vary.

The landlord can call on the guarantee without proving loss in some cases, depending on the wording. Ask for a cap, an expiry date, and a requirement that the landlord notify you before calling on it. When the lease ends, ask for the guarantee to be returned or cancelled.

A bank guarantee ties up security with your bank, so check the facility fees and whether it counts against your credit limit.

What makes a commercial lease review effective

An effective review covers more than the rent figure. It should look at:

Rent review method and frequency, including whether increases are fixed, CPI-linked or market-based

Outgoings and what you are expected to pay, including whether there is a cap or audit right

Make good and repair obligations, including the condition of the premises at the start

Term and renewal options, including auto-renewal notice periods

Break clause conditions, if any, and whether they depend on full compliance with all covenants

Personal guarantee and bank guarantee requirements

Assignment and subletting rights if you want to sell or exit early

Governing law and dispute resolution, especially if the landlord is interstate

The output should be a list of specific clauses with suggested wording changes, not just a general impression.

When to use a lawyer versus doing it yourself

Reading a lease yourself is fine for a short, simple agreement if you understand every clause. But commercial leases are long documents with legal consequences that last for years.

Consider a lawyer when the rent is material to your business, the term is five years or more, there is a personal guarantee, or the landlord insists on negotiating through their solicitor. Templates and AI checks can help you prepare, but they cannot replace tailored advice for your situation.

Lease and contract rules differ by state and territory. Check your state's rules or ask a lawyer before signing.

Next step

Check your lease free and see the risky sentences quoted from your file before you sign.