What do I need to consider before signing a commercial lease in New Zealand?

Mia Block, Solicitor, September 2026

Signing a commercial lease is a major commitment. Whether you are starting a new business, relocating, or expanding, the lease you sign can have a lasting impact on your business and finances. Taking the time to understand the terms before you sign can help you avoid costly issues later.

preparing for signing a commercial lease

1.     Lease Term - consider whether the length of the lease suits your business plans. A longer lease may provide security, but it can also reduce your flexibility if your circumstances change.

2.     Rent and Other Costs - rent is only part of the overall cost of leasing commercial premises. You should also understand how rent reviews work and whether you will be responsible for additional costs such as rates, insurance, maintenance, or other operating expenses.

3.     Permitted Use – does the lease allow you to use the premises for your intended business activities? You may require council consent or licences for your proposed use, which may need to be investigated before you sign a lease.

4.     Personal Guarantees - if you are asked to personally guarantee the lease, remember that you may become personally liable if your business cannot meet its obligations. You should fully understand the risks before agreeing to provide a guarantee.

5.     Make Good - some leases require tenants to carry out repairs or restore the premises at the end of the lease, which can be expensive if you are not prepared.

6.     Selling or Leaving the Premises - if you later decide to sell your business or move, you will likely need to assign the lease or sublease the premises. Many leases require the landlord's consent to assign or sublease to a new tenant.

why do i need a lawyer before signing a commercial lease?

Commercial leases are often negotiable and small changes can make a significant difference over the life of the lease. Having a lawyer review the lease before you sign can help you understand your obligations, identify potential risks and negotiate more favourable terms.

If you are considering signing a commercial lease in New Zealand, we can review your lease, explain the key terms and help protect your interests before you commit.

Contact Our LEGAL team

Our lawyers are here to help with practical legal advice and a personalised solution to assist you before committing to a commercial lease.