Commercial lease expiry coming up?
31 May 2025

Know Your Rights and Obligations at Renewal Time

If your commercial lease is approaching its expiry date, now is the time to get clear on your rights, obligations, and options. Whether you’re a landlord or a tenant, understanding the renewal process is key to protecting your business interests and avoiding unexpected issues.


What Happens When a Commercial Lease Expires?


Most commercial leases include a right of renewal, giving the tenant the option to continue the lease for a further term. However, this right is not automatic—it must be properly exercised within the timeframes set out in the lease, often 3 to 6 months before expiry.



Failure to renew the lease means that the current term of the lease ends. When the lease ends, most leases provide for month-to-month tenancy to continue. This means that the tenant or the landlord could end the tenancy by giving twenty working days’ notice, leaving the tenant without premises or the landlord needing to find a new tenant at short notice.


Things to Consider at Renewal:


  • Exercise of Renewal Rights
    Tenants must provide written notice of their intention to renew within the required notice period. Landlords should confirm whether this has been done correctly and on time.
  • Market Rent Reviews
    Most commercial leases provide for a market rent review at the start of a renewed term. This can lead to negotiation—and sometimes dispute—around current market rates. It’s often worth obtaining independent valuation advice.
  • Condition of the Premises
    At the point of renewal, landlords may check that the tenant has complied with their obligations under the lease and maintained the premises. It is wise to review the lease and be aware of each party's maintenance and make good obligations.
  • Compliance with Lease Terms
    Landlords generally cannot refuse to renew a lease provided the tenant has complied with their obligations under the lease. However, landlords may have grounds to object if, for example, rent has not been paid on time, or the premises have not been properly maintained.


Plan Ahead to Avoid Surprises


The lead-up to lease expiry is the perfect time to reassess whether the existing terms still suit your commercial needs. Whether it's negotiating more favourable conditions, securing stability for the future, or ensuring compliance with legal obligations, early legal advice can make a significant difference.


Talk to us if your commercial lease is due to expire in the next 6–12 months. We can help you navigate the renewal process and ensure your interests are protected.

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