A commercial lease in Camden is a binding multi-year contract that commits your business to far more than just monthly rent. It is one of the most significant legal commitments your business will make, and the standard form documents landlords use are written to protect the landlord, not you. The single most important step any tenant can take is to have a solicitor review the lease before signing, not after.
- Retail tenancies (shops selling to consumers) are governed by the Retail Leases Act 1994 (NSW), which provides a minimum 5-year term, mandatory disclosure statement, outgoings transparency and a ban on ratchet clauses and key money.
- Standard commercial leases (offices, warehouses, industrial units) are governed mostly by the Conveyancing Act 1919 (NSW) and contract law, with far fewer statutory protections.
- Outgoings, rent reviews and make-good are the three clauses tenants most commonly underestimate.
- Personal guarantees can put your home and personal assets at risk if the business cannot pay.
- There is no cooling-off period for commercial leases in NSW, so the moment you sign, you are bound.
What makes the Camden commercial market different
Camden is no longer the quiet rural town it once was. The Macarthur region has a population of approximately 138,000 and is forecast to reach around 257,000 by 2046\. Western Sydney International Airport opened in 2026, the M12 motorway has connected it to the broader region from March 2026, and the Aerotropolis is projected to create around 200,000 jobs across aerospace, defence, manufacturing, healthcare and logistics, supported by $835 million in NSW Government infrastructure funding.
Gregory Hills, Narellan, Oran Park and Camden town centre are all seeing sustained demand for commercial tenancies. For a tenant that growth is real opportunity, but a competitive market also gives landlords leverage. Standard form leases default to the landlord’s interests.
Retail leases versus commercial leases and the critical distinction
The type of lease that applies to your premises determines your statutory rights as a tenant.
Retail leases under the Retail Leases Act 1994 (NSW) apply where your business operates from a shop selling goods or services directly to consumers, including shops in shopping centres, standalone retail outlets, food and hospitality businesses, and hairdressers. Broadly, if customers walk in to purchase, the Act likely applies.
The Act provides protections that do not exist under a standard commercial lease: a minimum 5-year term including options, a mandatory disclosure statement before signing, outgoings transparency so the tenant is only liable for items specified in advance, a prohibition on ratchet clauses and on key money, and access to free mediation through the NSW Small Business Commissioner and low-cost dispute resolution through NCAT.
Standard commercial leases apply to offices, warehouses, industrial units and any non-retail tenancy. They are governed by general contract law and the Conveyancing Act 1919 (NSW), with significantly fewer statutory protections. Almost everything is negotiable, but only before you sign.
Key terms every business owner must understand
Base rent and rent-free periods
The base rent is the foundation of your lease, expressed as an annual rate per square metre or a fixed monthly amount. Many landlords offer rent-free periods as an incentive for new tenants, particularly during fit-out. Confirm clearly when the rent-free period ends and what the first paying month looks like.
Outgoings are the costs of operating the property beyond base rent that the landlord passes on to tenants, commonly including council and water rates, building insurance, common area maintenance and cleaning, property management fees, repairs, and in some leases, land tax.
Under a retail lease, outgoings must be disclosed in advance and the tenant is only liable for items specified in the lease and disclosure statement. Under a standard commercial lease there is no equivalent requirement, so every outgoings clause must be scrutinised. Always request the previous 12 months of outgoings figures. A tenancy that looks affordable on base rent can be substantially more expensive once outgoings are included.
How rent can increase during the term is one of the most consequential clauses in any commercial lease. The three common mechanisms in NSW are summarised below.
| Review type | How it works | Risk profile |
| Fixed percentage | Rent rises by a set percentage each year, often 3 to 4% | Predictable; can exceed CPI in low-inflation years |
| CPI-linked | Rent rises by the Consumer Price Index | Considered fairest; tied to inflation |
| Market rent review | Rent reset to current market rate at the review date | Unpredictable; can produce significant increases |
In retail leases, ratchet clauses are prohibited, so rent must move with the market at a market review. In standard commercial leases, ratchet clauses are common and enforceable, meaning your rent may be locked at its existing level even if local market rents fall. Before signing, understand exactly when rent reviews occur, what method applies, and whether a ratchet clause prevents a downward adjustment.
An option to renew is a right, not an obligation, to extend your lease. For a local business that has built goodwill in its location, the option is often more valuable than the lease itself.
Options must be exercised strictly within the timeframe set out in the lease, and missing the window even by a few days can mean losing your right to renew. Many leases require the tenant to be in compliance with all lease terms before an option can be exercised, and many reset rent to market on commencement of the option period. Set calendar reminders well before your option window opens.
Make-good is the obligation tenants most often underestimate. At the end of a lease, the clause requires you to return the premises to the condition specified, which can mean removing all fit-out, fixtures and signage, repainting walls, removing partitions, reinstating original flooring, or restoring the space to base building standard.
For any tenant that has invested in fit-out, a broadly worded make-good clause can mean spending tens of thousands of dollars at the end of the lease. Negotiate to define the scope with specificity, document the baseline condition with photographs at lease commencement, and note that section 133A of the Conveyancing Act 1919 (NSW) places limits on what a landlord can recover for breach.
The permitted use clause defines exactly what your business is allowed to do on the premises. If your business changes or expands beyond the defined permitted use, you may be in breach of the lease. In a shopping centre or multi-tenancy building the landlord may also use the permitted use restriction to prevent competing tenancies nearby, which can be both an advantage and a constraint. Ensure your permitted use clause is drafted broadly enough to accommodate how your business may evolve over the lease term.
If you plan to sell your business during the term, the ability to assign the lease to the buyer is critical. Under a retail lease, the landlord cannot unreasonably withhold consent to assignment and cannot refuse simply to extract a premium. Under a standard commercial lease, there is no equivalent statutory requirement, so the landlord may refuse consent or impose conditions unless the lease itself limits that discretion. Where the Retail Leases Act does not apply, negotiate a clause stating that consent to assignment will not be unreasonably withheld or delayed.
Common traps and unfair clauses to watch for
Personal guarantees. Many landlords require the business owner to sign a personal guarantee, making you personally liable for the lease obligations even if the company fails. Your home, savings and personal assets can be at risk. Before providing a personal guarantee, understand exactly what is being guaranteed (full lease term, all outgoings, make-good costs) and where possible negotiate to limit the guarantee to a defined period or a monetary cap.
Bank guarantees and cash bonds. Landlords typically require security as a cash bond or a bank guarantee. Bank guarantees can be drawn down by the landlord in defined circumstances. Understand the conditions under which your security can be called on and what notice or process applies.
Demolition and redevelopment clauses. Some commercial leases in developing areas, including parts of the Macarthur region and the Aerotropolis zone, include clauses allowing the landlord to terminate the lease early to redevelop. Under the Retail Leases Act, a landlord must give a minimum of 6 months’ written notice before ending a lease for demolition, and the tenant is entitled to compensation for fit-out costs. Under a standard commercial lease there are no equivalent statutory protections, and notice periods of just 1 to 3 months are common. If continuity of location is important to your business, this clause needs careful review and, where possible, negotiation.
Unilateral relocation rights. In shopping centres and multi-tenancy developments, leases sometimes give the landlord the right to relocate your tenancy to another part of the centre. This is rarely acceptable for a business that has built foot traffic and brand awareness in a specific location.
Broad indemnity clauses. Standard drafting often includes broad indemnities requiring you to compensate the landlord for any loss arising from your occupation of the premises. The scope of these clauses should be reviewed and, where possible, narrowed to losses caused by your own negligence or default.
When to get legal advice
Before you sign, not after. A commercial lease is binding from the moment of execution and there is no cooling-off period in NSW. Once signed, the terms are locked in.
A solicitor reviewing the lease before you sign will identify clauses that are uncommonly broad or one-sided, negotiate amendments to make-good, permitted use, outgoings and assignment, advise on whether the Retail Leases Act applies, flag personal guarantee exposure, and review fit-out contributions or rent-free incentives. A lease review typically takes a few days and represents a small cost relative to a multi-year financial commitment.
Speak with Family Focus Legal
Family Focus Legal is a Camden-based firm with deep roots in the local business community. Our commercial team reviews proposed leases, negotiates amendments with landlords and their solicitors, advises on whether the Retail Leases Act 1994 (NSW) applies, manages option exercises within deadline, and supports lease assignments when you sell the business.
If you are about to sign a commercial lease in Camden, Narellan, Gregory Hills or anywhere across the Macarthur region, talk to us before you sign. Visit our office at 68 John Street, Camden NSW 2570, phone (02) 4655 4224, or contact Family Focus Legal to arrange a review.
