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Gyms & Small Bars – Changes to Retail Leases

From 1 January 2023, leases of gyms and small bars will now be covered by retail leases legislation.

The Retail Leases Regulation 2022 contains a new list of retails shops to which the Retail Leases Act 1994 applies. The new list now includes gymnasiums and fitness centres including yoga, barre, pilates and dance studios and small bars with a maximum patron capacity of 120.

The new Regulation also provides that the Act’s dispute mediation provisions will apply to these new class of retail shops even if the lease commenced prior to commencement of the Regulation.

The Act sets out the rights and responsibilities of lessors and lessees under a retail lease and it is important to ensure the provisions of the Act are strictly followed to ensure the provisions of a retail lease will be enforceable. 

Our property lawyers have extensive experience in acting for both lessors and lessees in relation to retail leases and have a thorough understanding of the retail leases legislation.

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