Unconventional Features of Commercial Leasing
This article is the second in a series entitled: Navigating Commercial Leasing in New Zealand.
Commercial leasing is a cornerstone of the business landscape in New Zealand, enabling enterprises to secure suitable spaces for their operations. While standard leasing considerations like rent, lease term, and maintenance obligations are crucial, there are several unconventional aspects that businesses may need to contemplate when entering into a commercial lease agreement. In this article, we delve into some often-overlooked factors, including fire curtains, trading times, animals on premises, and EV car charging in carparks.
Fire Curtains and Safety Compliance
Ensuring the safety of occupants is paramount in any commercial space. Fire curtains, which are vertical barriers designed to prevent the spread of fire and smoke. They are often used in large commercial and retail spaces such as malls. When entering a lease agreement, businesses should consider whether the property is equipped with fire curtains. If so, the lease should address their maintenance requirements, and how they may affect the layout and functionality of the space. It's important to work with your lawyer and property inspector to assess the adequacy of fire safety measures on any commercial space.
Trading Times and Flexibility
The operating hours of a business can significantly impact its success. Commercial spaces that are part of a centre/development may have required trading hours, in other cases you may be limited to trading as particular times by the landlord, body corporate and local business/ government bodies. When leasing a commercial space, it's essential to consider trading times and assess whether they align with your business's target audience and industry norms. Your solicitor can help you assess whether there is any restriction on trading times or related requirements to particular premises. Negotiating flexible trading hours in the lease agreement can provide your business with the agility to adapt to changing customer preferences and market trends.
Animals on Premises and Regulations
For businesses that involve animals, such as pet stores or veterinary clinics, understanding the regulations and permissions related to animals on the premises is crucial. You may also need to account for service animals or wish to be able to bring your pets into your workspace. You should check with the landlord and body corporate as to what animals are allowed on the premises. Lease agreements should outline responsibilities for maintaining suitable conditions for animals and complying with relevant regulations.
Electric Vehicle (EV) Charging in Carparks
As New Zealand moves towards sustainable practices, the adoption of electric vehicles is on the rise. For businesses considering the installation of EV charging stations in their carparks, it's important to assess the feasibility and cost implications. Lease agreements should address the installation, maintenance, and usage of EV charging infrastructure, ensuring a smooth transition to electric mobility while considering any impact on parking availability.
Compliance with Zoning and Usage Regulations
Zoning and land use regulations play a significant role in commercial leasing. It's vital to understand the zoning requirements for the property and whether your intended use aligns with the permitted uses outlined in local zoning laws. If your business involves activities beyond the norm, such as manufacturing or food production, ensuring compliance with regulatory requirements can prevent costly legal issues down the line.
While the core elements of a commercial lease agreement are well-known, each commercial space and business comes with its own considerations and entering into a standardised lease without considering each parties unique interests and the commercial space itself can lead to problems during the term of the lease. Collaborating with legal and industry experts is essential to ensure that you enter into a lease agreement that supports your business's needs and growth. We can help you assess what your lease should include to meet each parties need, if you are considering entering into a lease, please contact Turner Hopkins.
