Can I get out of a commercial lease early in Queensland?

Commercial leases are binding contracts for a fixed term (e.g., 3 or 5 years). Unlike residential tenancies, there are rarely statutory “break lease” formulas. If you walk away, the landlord can sue you for the rent for the entire remainder of the term.

Options for Exit

1. Assignment (Transfer)

This is usually your best legal right. Most leases allow you to assign (transfer) the lease to a new tenant with the landlord’s consent.¹

• The Catch: You must find the replacement tenant. The landlord must act reasonably but can refuse if the new tenant has poor financials.

2. Sub-leasing

You vacate but find a sub-tenant to pay you rent, which you then pay to the landlord.

• Risk: You remain 100% liable to the landlord. If your sub-tenant stops paying, you must still pay.

3. Negotiated Surrender

You approach the landlord and offer a deal: “I will pay you 3 months’ rent cash now if you tear up the lease.”

• Pros: Clean break.
• Cons: The landlord can say no.

Make Good Clauses

Don’t forget the “Make Good.” Even if you leave early, you usually have to strip the shop/office back to a bare shell (remove fit-out, repaint, re-carpet). This can cost thousands.

Related Topics

• Retail vs Commercial Leases
• Dispute resolution
• Commercial Law Practice Area

Negotiation Strategy

We act for tenants negotiating exits. We can often find technical breaches by the landlord (e.g., defective disclosure statements) that give you leverage to walk away penalty-free.

Need to exit? Contact us for a lease review. Call (07) 5532 8777.

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