Commercial Lease Clauses

1. Understanding 'Make Good' Provisions

Often overlooked, the 'Make Good' clause requires you to return the premises to their original state at the end of the term. For a ceramic studio, this could mean expensive removals of specialized plumbing, ventilation, or heavy-duty electrical wiring installed for kilns. Ensure the scope is clearly defined before signing.

2. Rent Review Mechanisms

How will your rent increase? Whether it is linked to the CPI (Consumer Price Index), a fixed percentage, or a market review, you need to forecast these costs. Be wary of "ratchet clauses" that prevent rent from ever decreasing, even if market values drop.

3. Permitted Use Clauses

Crucial for Studios: High-heat kilns and heavy machinery often fall outside standard 'retail' or 'office' use groups.

Ensure your lease explicitly allows for the operation of industrial kilns, clay processing, and retail sales if you plan to sell from your studio. Without this, you risk being in breach of lease—or worse, facing local council shut-downs.

4. Subletting and Assignment Rights

The ability to sublet a portion of your space to another artist or assign the lease entirely if you sell your business is vital. Look for language that states the landlord's consent cannot be "unreasonably withheld."

5. Maintenance and Outgoings

Who is responsible for the roof? The air conditioning? In commercial leases, outgoings (rates, taxes, insurance) are often passed to the tenant. Ensure you have a clear list of what is included to avoid surprise invoices in your first year.