Understanding Retail Leases in Western Australia – What Tenants Need to Know

If you’re leasing a shop in Western Australia, chances are your agreement is covered by the Commercial Tenancy (Retail Shops) Agreements Act 1985. This Act outlines the important rights and obligations of both landlords and tenants of retail shops.

What qualifies as a retail lease in WA?

Under the Act, a retail shop lease generally applies where:

  • The premises are used wholly or predominantly for the sale of goods or services by retail.

  • The premises are located in a retail shopping centre (a cluster of retail premises with a common owner/manager).

  • Certain small business premises outside shopping centres are also included.

Some leases are excluded, for example, those for large premises exceeding a specific lettable area, or leases where the tenant is a publicly listed company.

Key protections for tenants

The Act includes safeguards such as:

  • Pre-lease disclosure – Landlords must provide a disclosure statement before you sign.

  • Rent review transparency – rent review methods must be clearly stated.

  • Limits on recoverable outgoings – only certain expenses can be passed on to tenants.

  • Minimum lease terms – in many cases, at least five years (unless waived in writing).

  • Compensation rights – if you suffer a loss due to landlord interference or misleading conduct.

Why expert help matters

Retail leases are legally binding and typically last for several years. Even small clauses can have significant impacts on your costs and flexibility. At Axiraa, we help tenants:

  • Review new lease offers carefully before committing.

  • Negotiate fairer terms to protect your business.

  • Manage existing leases to ensure compliance and prevent costly oversights.

The bottom line

Understanding your rights under the WA Commercial Tenancy (Retail Shops) Agreements Act 1985 is essential. Axiraa works alongside your legal and financial advisors to ensure you enter, renew, or exit a lease with confidence – and without nasty surprises.

If you’re considering a new retail lease or want an expert review of your current agreement, contact Axiraa today.

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Understanding Variable Outgoings: As Incurred vs Budgeted – What Every Commercial Tenant Needs to Know