How Commercial Leases Work in Queensland (2026)

Signing a commercial lease is one of the largest financial commitments a business makes, and in Queensland the rules that govern those leases changed significantly when the Property Law Act 2023 took effect on 1 August 2025. Whether a business is taking its first premises or renewing an existing arrangement, the lease terms set out who pays what, who fixes what, and what happens when things go wrong.

The most important divide in Queensland commercial leasing is whether a lease is a retail shop lease under the Retail Shop Leases Act, or an ordinary commercial lease. The answer changes what disclosure must be given, what charges can be recovered and where disputes are heard. Most small business tenants assume they are protected by the retail regime when they may not be, and some assume they are not when they are.

Our Springfield team helps clients across Greater Springfield and Ipswich with commercial and retail shop lease matters, from reviewing a lease before signing to resolving disputes when a tenancy ends.

Here is how commercial leases generally work in Queensland, and why the retail versus non-retail distinction matters so much in practice.

This article is general information only and is not legal advice. Every situation is different, and you should speak with a solicitor about your own circumstances.

What is the difference between a retail shop lease and a commercial lease in Queensland?

Most commercial tenants in Queensland are covered by one of two regimes, and which one applies depends on what the business does and where the premises are, according to the Queensland Small Business Commissioner.

A lease is generally a retail shop lease where the premises are less than 1,000 square metres and used to carry on a retail business, or any business situated in a retail shopping centre regardless of size. A retail shopping centre is a grouping of five or more retail shops under common ownership or management and promoted as a centre. The whole leased area counts toward the 1,000 square metre limit. Where the leased area exceeds that threshold, QCAT has found it has no jurisdiction to hear retail shop lease disputes under that regime.

Businesses that wholesale goods rather than retail them are generally outside the retail regime. So are gyms, medical centres, offices and warehouses, depending on their use. Where neither the retail threshold nor the shopping centre definition applies, the lease is an ordinary commercial lease governed by Queensland's general property law, now primarily the Property Law Act 2023.

Getting this classification right matters from the outset. A tenant who does not know which regime applies may miss a right to disclosure, accept outgoing charges that cannot lawfully be recovered in a retail lease, or take a dispute to the wrong forum.

What must a landlord disclose before a retail shop lease is signed?

Under the Retail Shop Leases Act, a landlord must give a prospective retail tenant a disclosure statement at least 7 days before the tenant enters into the lease, according to the Queensland Small Business Commissioner. The statement covers the essential commercial terms: rent, outgoings, options, the term of the lease and the landlord's details.

If the landlord fails to meet this obligation, the tenant may be able to terminate the lease within 6 months of entering into it, with compensation decided through the dispute resolution process starting at Queensland Small Business Commissioner mediation.

A retail tenant with fewer than five retail leases must also obtain independent legal and financial advice reports, signed by their advisers, before signing. Those reports are given to the landlord before the lease commences.

Ordinary commercial leases carry no equivalent statutory disclosure obligation. A prospective tenant gets what the landlord chooses to provide, and what their solicitor uncovers in due diligence. This is one of the clearest practical differences between the two regimes.

What outgoings can a landlord recover, and how does that differ between lease types?

Outgoings are charges on top of rent, and how they are recovered depends on which regime applies.

In a retail shop lease, the Queensland Small Business Commissioner confirms that:

• › Only outgoings the lease specifically identifies are recoverable from the tenant.
• › Land tax, insurance excess and sinking fund contributions cannot be charged to a retail tenant.
• › Outgoings are generally apportioned by floor area, and the landlord must give an estimate before each period and an audited statement, usually by 30 September each year.
• › The Queensland Small Business Commissioner can mediate whether an outgoing was reasonably incurred, up to $750,000 in value.

For ordinary commercial leases, the Property Law Act 2023 sets default terms, including that rates and taxes are payable by the tenant unless the lease says otherwise. The parties have far more freedom to negotiate outgoings arrangements, and those arrangements bind whoever signs.

How does a commercial lease generally work in Queensland?

Step 1: Talk to us

Get in touch and we will explain what the lease terms mean in practice, whether the retail regime applies to the premises, and what to look for before signing anything.

Step 2: Review the lease and disclosure documents

We review the draft lease and, where applicable, the landlord's disclosure statement. We check rent review mechanisms, option terms, permitted use, outgoings obligations, make good provisions and any personal guarantee requirements, and we raise any concerns with the landlord's solicitor before terms are agreed.

Step 3: Negotiate and finalise the agreement

We assist with negotiation on any terms the client wants to change, draft any special conditions and ensure the executed lease and supporting documents correctly reflect what was agreed. For a retail shop lease we also check that the statutory advice reports have been properly completed and exchanged.

Step 4: Manage the ongoing lease

We advise on key dates, including option exercise windows and rent review periods, and assist if a dispute arises about outgoings, make good obligations, a landlord's consent to assign, or early exit from the lease.

Get in touch Need help with a commercial lease? We're an experienced team who keep you well informed at every stage of the process. Get in touch to discuss your needs. Make an Appointment Call (07) 3437 8555

What common mistakes do tenants make when entering a commercial lease in Queensland?

The most frequent problem the Queensland Small Business Commissioner sees is a tenant signing before understanding their obligations. A lease is a binding contract, and in Queensland neither party is ordinarily entitled to end it early simply because their business circumstances have changed. The three pathways out of a lease, surrender by agreement, assignment to a new tenant or termination for breach, each carry their own conditions and costs.

A second common issue is accepting outgoings estimates without reading the audited statement at year end, or not checking whether a particular outgoing is actually recoverable under the lease. For retail tenants, accepting a charge that the Retail Shop Leases Act prohibits does not make it lawful. A tenant who pays a prohibited charge has options, but they are easier to exercise before the pattern becomes entrenched.

When does this regime not apply to a commercial tenancy in Queensland?

Not every business premises in Queensland is covered by either the retail shop lease regime or the standard residential tenancy rules. Several common situations fall outside the retail framework entirely.

Situations where the Retail Shop Leases Act generally does not apply include:

• › Premises over 1,000 square metres: even if the business is retail in nature, the Act's protections do not apply.
• › Wholesale businesses: the wholesale sale of goods is not a retail business for these purposes.
• › Offices and warehouses: businesses of this kind are generally outside the retail definition.
• › Medical and professional premises: the use of premises for professional services rather than retail typically takes them outside the Act.

Where the retail Act does not apply, the lease is governed by the Property Law Act 2023 and general contract law, supplemented by whatever the parties have agreed. The tenant's protection in these cases comes almost entirely from negotiation and legal advice before signing, not from statutory rights.

Frequently Asked Questions

Your Next Steps

A commercial lease in Ipswich, Springfield or anywhere in Queensland creates obligations that run for years, and the terms agreed at the outset determine how much flexibility a business has if circumstances change. Understanding whether the retail shop lease regime applies, what outgoings are recoverable, how rent can be reviewed and what make good will cost at the end is not something a business should leave to chance after signing.

Every commercial lease matter is different, and that's exactly why it's worth a conversation. Make an appointment with the Brookwater Legal team or call (07) 3437 8555.

By the Brookwater Legal Team Brookwater Legal is owned and run by Jade Kickbusch who has worked in the legal industry since 2009 and was admitted as a solicitor of the Supreme Court of Queensland in 2023, holding a Bachelor of Laws from the University of Southern Queensland. Jade leads the firm's conveyancing and property division and its wills and estates division, and oversees a team acting for clients across Greater Springfield and Ipswich in property, family law, estates and business matters. Meet the team → Make an Appointment →

Brookwater Legal · This article contains general information only and does not constitute legal advice. It does not take into account your individual circumstances. You should obtain legal advice about your own situation before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.