What is a Shopping Centre Lease?

by LegalVision

There are specific rules set out in retail leasing legislation that applies to all businesses located in shopping centres. Our business lawyers often clarify questions regarding the definition of shopping centre that vary from state to state. This article unpacks shopping centre leases in each state and territory to help tenants best understand how the legislation applies to their business.  

New South Wales

Retail Leases Act 1994 (NSW)

  • A shopping centre is a cluster of premises where at least five or more businesses are wholly or predominantly operating a type of business listed in Schedule 1 of the Retail Leases Act 1994 (NSW).
  • These businesses must be either:
    • owned by the same person;
    • have the same landlord or head landlord; or
    • contain lots within a single strata plan.
  • The businesses must be located in one building, or two or more conjoined buildings and must be promoted as a shopping centre, mall, court or arcade.

Queensland

Retail Shop Leases Act 1994 (QLD)

  • A shopping centre is a cluster of premises where at least five are used to operate a retail business.
  • The same person must own the cluster of businesses, or it must comprise of lots within a single community titles scheme.
  • The premises must all be located in one building, or buildings separated only by a common area or a road.
  • The premises must generally be regarded or promoted as a shopping centre.

Victoria

Retail Leases Act 2003 (VIC)

  • A shopping centre is a cluster of premises, at least five of which are retail premises.
  • This cluster must be under common ownership, or if leased, must have the same landlord, or the same head landlord.
  • The cluster of premises must be located in a single building, or in adjoining buildings, which are separated only by common areas, other areas owned by the same landlord, or a road.
  • The cluster of premises must also be promoted or regarded as a shopping centre, mall, or arcade.

South Australia

Retail and Commercial Leases Act 1995 (SA)

  • A shopping centre is a cluster of premises, at least five of which are retail shops.
  • The premises must all be owned by the same person, have the same landlord or head landlord, or comprise lots within a community plan, or units within the same plan.
  • The premises must be located in a single building, or in conjoined buildings, and must be promoted or generally regarded as a shopping centre, mall or arcade.

Tasmania

Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998 (TAS)

  • A shopping centre is a cluster of premises, at least five of which are retail premises.
  • The same person must own them, and they must be located in one building or adjoining buildings.
  • The premises must also generally be regarded as a shopping centre.

Western Australia

Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA)

  • A shopping centre is a cluster of premises, at least five of which are used for the carrying on of a retail business.
  • The shops must have a common head landlord, or comprise lots on a single strata plan.
  • If the premises are located in a multi-storey building, only those levels of the building where a retail business is situated will be included in the definition of ‘shopping centre’.

Australian Capital Territory

Leases (Commercial and Retail) Act 2001 (ACT)

  • A shopping centre is a cluster of premises, at least five of which are retail, small commercial or specified premises, or a mixture of those types of premises.
  • They must be owned by the same person, or the same head landlord, or comprise lots within a single strata plan managed by a single person/entity.
  • They must all be located in the same building, or in conjoined buildings and must generally be promoted or regarded as a shopping centre, mall, court or arcade.

Northern Territory

Business Tenancies (Fair Dealings) Act 2003 (NT)

  • A shopping centre is a cluster of premises, at least 5 of which are used wholly or predominantly to provide goods or services by retail.
  • These premises must fall under common ownership, or if leased, have the same landlord or head landlord. They can also comprise lots within a single units plan.
  • The premises must be located in the same building, or adjoining buildings, or buildings only separated by common areas and/or other areas owned by the landlord.
  • The premises must be promoted or generally regarded as a shopping centre, mall, court, or arcade.

Key Takeaways

The exact position as to what constitutes a shopping centre – and therefore what types of leases are retail shop leases – differs from state to state across Australia. However, certain characteristics hold true across all jurisdictions. A shopping centre must:

  • Be a cluster of premises
  • Must contain five or more retail businesses
  • Contain businesses falling under common ownership, or leased by the same landlord
  • Be situated in a single building, or in adjoining or conjoined buildings
  • Be promoted, or regarded, as a shopping centre

 

If you have any questions about retail or commercial leasing in shopping centres, get in touch with LegalVision. Our leasing lawyers will be happy to assist you. Call us on 1300 544 755.



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