By Conrad Pedersen, Colliers International

There seems to be a flurry of activity in the retail leasing market at present. Large national tenants are taking advantage of the prime spaces on offer and smaller business owners, including first time renters, are also active in the market.

Despite the economic down turn, the retail sector has still managed to capture a good percentage of the weekly wages of most Australians. Australian turnover has increased in seven of the eight months prior to June 2009 according to figures released by the ABS in September this year.

If you are considering a new lease in a retail shop, it’s a good idea to make yourself familiar with the Retail Shop Leases Act.

A couple of the key points that make a retail shop lease different from office and industrial leases are:

•    The owner, or its agent, must present a disclosure statement to you prior to a lease being signed.

•    The annual review mechanism must be fixed. I.e. it cannot be CPI or 4% whichever the greater; it must state a single review mechanism.

•    If the shop is in a body corporate, the owner cannot pass on sinking fund costs.

Whether it be retail, office or industrial premises you are after, contacting a leasing agent with a good knowledge of the area where you’re going to situate your business is essential. Our advice is to take up any offer of going for a drive with an agent. If they do their job correctly, they will provide you with valuable knowledge on not only what is available, but also what has been recently leased and sold in the area and more importantly, the rental rates owners have achieved. This puts you in a better position to negotiate a lease that suits your needs.

It is important to find a specialist agency where each agent is able to provide up-to-date, specialist advice on the market you’ve chosen to locate. This ensures you can access advice from different specialists in the one office and receive a higher standard of service and knowledge from an agency that can refer you internally.

By taking a drive with an agent you will be provided with both industrial and commercial leasing opportunities. This gives you knowledge of what is available and provides you with several options to consider before coming to a decision, making sure you find a property that specifically suits your needs.

Area specialists will not only provide you with the best advice, but will generally have control of the best spaces available. Property owners also prefer a specialised agency that can help both the smaller tenants get set up properly, and who provide regular contact with the larger tenants in the marketplace.