Retail Lease Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Retail Lease Agreement

"Need a Retail Lease Agreement for a high-end fashion store in Tsim Sha Tsui, Hong Kong, with a 3-year term starting March 1, 2025, including turnover rent provisions and specific requirements for luxury retail display windows."

Document background

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.

Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

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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