The Retail Lease Agreement is a crucial document used in Hong Kong's commercial property market to establish a legally binding relationship between property owners and retail businesses. It is specifically designed for retail premises, distinguishing it from general commercial leases by incorporating provisions particular to retail operations, such as turnover rent, trading hours, and shopfront requirements. The agreement must comply with Hong Kong property law, including the Landlord and Tenant (Consolidation) Ordinance, while addressing practical retail considerations. This document is essential when a business seeks to lease space for retail operations, providing comprehensive coverage of rights, obligations, and operational parameters for both parties.
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1. Parties: Identifies and provides full details of the landlord and tenant, including registration/ID numbers and addresses
2. Background: Brief context about the property and purpose of the lease
3. Definitions: Defines key terms used throughout the agreement
4. Demise: Specifies the exact premises being leased and any included fixtures/fittings
5. Term: Details the duration of the lease, including commencement and expiry dates
6. Rent and Payment Terms: Specifies rent amount, payment schedule, and payment methods
7. Security Deposit: Details of security deposit amount, payment, and conditions for return
8. Management Fees and Other Charges: Outlines additional costs including utilities, rates, and management fees
9. Use of Premises: Permitted use of the premises and trading restrictions
10. Maintenance and Repairs: Responsibilities of each party regarding maintenance and repairs
11. Insurance: Insurance requirements for both parties
12. Assignment and Subletting: Restrictions on assignment and subletting of the premises
13. Landlord's Covenants: Obligations and promises of the landlord
14. Tenant's Covenants: Obligations and promises of the tenant
15. Termination: Circumstances and procedures for early termination
16. Default and Remedies: Consequences of breach and available remedies
17. Notices: Process for serving notices between parties
18. Governing Law: Confirms Hong Kong law as governing law and jurisdiction
1. Option to Renew: Include when offering tenant the option to extend the lease term
2. Break Clause: Include when either party has the right to terminate early under specific conditions
3. Rent Review: Include for longer leases where rent adjustments are contemplated
4. Fitting Out Works: Include when tenant is permitted to perform initial renovations
5. Turnover Rent: Include when rent includes a percentage of tenant's sales
6. Government Lease Conditions: Include when specific government lease conditions affect the tenant's use
7. Competition Restrictions: Include when there are restrictions on competing businesses
8. Force Majeure: Include when specific provisions for unforeseen circumstances are needed
9. Green Lease Provisions: Include when incorporating environmental sustainability requirements
1. Schedule 1 - Property Details: Detailed description of premises including floor plan and measurements
2. Schedule 2 - Rent Schedule: Breakdown of rent payments and due dates
3. Schedule 3 - Inventory: List of fixtures, fittings and equipment included in the lease
4. Schedule 4 - Building Rules and Regulations: Specific rules governing the use of the building
5. Schedule 5 - Fitting Out Guidelines: Technical specifications and requirements for shop fitting
6. Schedule 6 - Service Charge Details: Breakdown of management fees and other charges
7. Appendix A - Plans: Floor plans and location maps
8. Appendix B - Handover Condition: Photographs and description of premises condition at handover
9. Appendix C - Operating Hours: Required trading hours and building access times
Relevant legal definitions
Clauses
Relevant Industries
Retail
Fashion and Apparel
Food and Beverage
Electronics and Technology
Jewelry and Accessories
Beauty and Cosmetics
Home and Furniture
Shopping Centers and Malls
Commercial Real Estate
Luxury Goods
Entertainment and Leisure
Relevant Teams
Legal
Real Estate
Operations
Finance
Compliance
Risk Management
Facilities Management
Commercial
Property Management
Retail Operations
Asset Management
Relevant Roles
Real Estate Manager
Legal Counsel
Commercial Director
Retail Operations Manager
Property Manager
Leasing Manager
Facilities Manager
Chief Financial Officer
Store Manager
Compliance Officer
Risk Manager
Asset Manager
Property Director
Retail Development Manager
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