A Commercial Disclosure Statement is a legal document that provides important information and is required for every retail lease in commercial real estate under the Retail Leases Act 2003. A non-retail lease does not require a Disclosure Statement.
A Disclosure Statement serves as a means of providing important information and disclosure to tenants in commercial properties, ensuring transparency and compliance with relevant laws.
There are different versions of Commercial Disclosure Statements, and each are tailored to specific situations with the commercial leasing process.
Disclosure Statement – Non-Shopping Centre
This version is used for new leases involving commercial properties that are standalone or not part of a shopping centre. The Retails Leases Act 2003 defines it briefly as a cluster of at least 5 retails premises owned by the same person that are only separated by common areas.
It provides essential information about the terms and conditions of the lease, rent, and other relevant details.
Disclosure Statement – Shopping Centre
This version is required for properties that meet the definition of a shopping centre under the Retail Leases Act 2003. It includes additional sections that pertain to the shopping centre’s operation, such as exclusive use rights, data about the centre and its operation, and tenant-specific trading hours.
Disclosure Statement – Renewal of Lease
When a tenant exercises an option to renew their lease, this form is used. It typically contains information about the renewal terms and any changes or amendments from the previous lease.
As this form does not have a section for Statement of Outgoings, you will need to supply a new and updated estimate of outgoings for the next 12 months, which is required under the Act.
Disclosure Statement – Transfer of Lease
This form is necessary when a tenant wishes to assign or transfer their lease to another party. It often includes information about the business itself, its expenses and the like. It is typically prepared by a solicitor and requires landlord approval and review.
The commercial team at First National Commercial Neilson Partners are hands-on and experienced commercial real estate agents and property managers who have extensive knowledge of commercial lease processes including Disclosure Statements, lease negotiations and renewals, maintenance, and insurance.
We would be pleased to assist you with any queries you have surrounding commercial real estate.
