QLD Can We Break Commercial Lease?

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2 January 2019

We have a business and a commercial lease of 5 years. We are 2.5 years into the lease and are struggling to meet the cost of rent. How long before the agent can re-enter the premises and terminate our lease? Can we break the lease if we are not able to afford the rent? The building we are in is twice as large as we need, so we need to move to a smaller cheaper place to keep our business afloat. What are our rights?

Rob Legat - SBPL

LawTap Verified
16 February 2017
Gold Coast, Queensland
I'd suggest talking to your landlord straight away to see if they can work with you to find a replacement. For the most part, your rights and obligations are set out in the lease - particularly if you do not fall under the Retail Shop Leases Act. You'll likely be up for some costs in breaking the lease including (depending on the terms of your lease): redecoration, re-letting costs (e.g. advertising and agent's fees), payment of rent until re-let, and shortfall of rent if it cannot be re-let at the same rental. In your favour is an obligation on the landlord to mitigate the situation by taking active steps to re-let the property.