Warehouse / Industrial Lease Agreement (Australia)
This Warehouse and Industrial Lease Agreement (the "Lease") is made on [Lease Date] in [State/Territory], Australia.
1. PARTIES
1.1 Landlord: [Landlord Name], ABN [Landlord ABN], of [Landlord Address], email [Landlord Email] (the "Landlord").
1.2 Tenant: [Tenant Name], ABN [Tenant ABN], of [Tenant Address], email [Tenant Email] (the "Tenant").
2. PREMISES AND PERMITTED USE
2.1 Premises: [Premises Address] (the "Premises").
2.2 Description: [Premises Description].
2.3 Permitted Use: The Tenant must use the Premises only for the purpose of [Permitted Use] and for no other purpose without the prior written consent of the Landlord. The Tenant must not use the Premises for any purpose that is not permitted under the applicable planning scheme or zoning requirements for the area.
2.4 Loading Dock and Hardstand: The Tenant may use the loading dock(s) and hardstand areas described in clause 2.2 subject to the Landlord's reasonable directions regarding scheduling and use. The Tenant must not obstruct any loading dock or common driveway.
2.5 The Tenant must obtain and maintain all licences, approvals, and permits required to operate its business from the Premises, including any environmental approvals, dangerous goods licences, and council permits.
3. LEASE TERM
3.1 Commencement Date: [Commencement Date].
3.2 Initial Term: [Lease Term].
3.3 Expiry Date: [Expiry Date].
3.4 If the Tenant remains in possession after the expiry without the Landlord's consent, the Tenant holds over as a monthly periodic tenant on the same terms as this Lease (except the term) until terminated by either party giving one month's written notice.
4. RENT AND RENT REVIEW
4.1 Annual Base Rent: AUD $[Annual Rent] per annum (excluding GST), payable monthly in advance. GST of 10% is payable on all rent under the A New Tax System (Goods and Services Tax) Act 1999 (Cth). The Landlord must provide valid monthly tax invoices.
4.2 Rent Review: Base rent will be reviewed by [Rent Review Method]. Review details: [Rent Review Details].
4.3 Ratchet: Subject to applicable law, rent will not decrease as a result of any rent review.
4.4 For CPI reviews, the Consumer Price Index (All Groups) for the capital city of [State/Territory] as published by the Australian Bureau of Statistics will be used.
4.5 Late Payment: Rent and all other amounts not paid within 7 days of the due date attract interest at 10% per annum from the due date until the date of payment.
5. OUTGOINGS
5.1 This is a net lease. The Tenant must pay or reimburse the Landlord for the following outgoings: [Outgoings Payable].
5.2 The Landlord will provide the Tenant with an annual estimate of outgoings before the commencement of each lease year and a reconciliation statement within 3 months after the end of each year. Any shortfall is payable within 14 days of the reconciliation statement; any excess will be credited to the Tenant.
5.3 Outgoings does not include land tax (which is the Landlord's responsibility), capital expenditure on the structural integrity of the building, or costs associated with other tenants or the common parts beyond those specified.
6. SECURITY
6.1 The Tenant must provide to the Landlord, on or before the commencement date, a [Security Type] in the amount of AUD $[Security Amount] as security for the due performance of all obligations under this Lease.
6.2 The Landlord may draw on the security if the Tenant is in default and has failed to remedy the default after any applicable notice period. The Tenant must reinstate the security to the full amount within 10 business days after any draw.
6.3 The security (or balance) will be returned to the Tenant within 30 days after the end of the Lease, subject to the Tenant having performed all obligations including make good.
7. WORK HEALTH AND SAFETY AND ENVIRONMENT
7.1 WHS: The Tenant must comply with all obligations under the Work Health and Safety Act applicable in [State/Territory] and all regulations made under it. The Tenant is the person with management or control of the Premises for the purposes of the WHS Act and must ensure the Premises are safe for workers, subcontractors, and visitors.
7.2 Environmental Compliance: The Tenant must not use the Premises in a way that causes pollution, contamination, or environmental damage. The Tenant must comply with all applicable environment protection legislation. The Tenant is liable for all costs of remediation arising from any contamination caused by its operations.
7.3 Fire Safety: The Tenant must not impede access to fire exits, fire equipment, sprinkler systems, or smoke detectors. The Tenant must comply with all fire safety requirements under the Building Code of Australia and applicable state legislation.
7.4 The Landlord must maintain the structure, roof, essential services, and fire systems of the Premises in good working order and repair.
8. MAINTENANCE, REPAIRS AND MAKE GOOD
8.1 The Tenant must maintain the interior of the Premises (including roller doors, loading dock equipment, floor surfaces, lighting, and all mechanical, electrical, and hydraulic plant installed by or for the Tenant) in good repair and working condition, fair wear and tear excepted.
8.2 The Tenant must not make any structural alterations to the Premises without the Landlord's prior written consent. Approved alterations become the Landlord's property at expiry unless the Landlord directs removal.
8.3 Make Good: At the expiry or earlier termination of this Lease, the Tenant must, at its cost: [Make Good Obligations]. The Tenant must repair any damage to the concrete floor caused by racking feet, forklifts, or other operations to a standard acceptable to the Landlord.
8.4 The Tenant must allow the Landlord access to inspect the Premises on reasonable notice (not less than 48 hours except in an emergency) during the Lease term and during the final 3 months to show prospective tenants or purchasers.
9. INSURANCE
9.1 The Tenant must maintain, at its cost throughout the Lease term:
(a) Public liability insurance of not less than AUD $[Public Liability Amount] per occurrence, noting the Landlord as an interested party;
(b) Insurance over the Tenant's stock, plant, equipment, and fit-out for not less than AUD $[Contents Insurance Amount] on a replacement basis;
(c) Workers' compensation insurance as required by law in [State/Territory];
(d) Any insurance required in connection with the storage or handling of dangerous goods or hazardous substances.
9.2 The Tenant must provide evidence of all insurance policies to the Landlord on request and within 5 business days of any renewal.
10. DEFAULT AND TERMINATION
10.1 If the Tenant fails to pay rent or any other amount within 14 days of the due date, or breaches any term of this Lease and fails to remedy the breach within 14 days of written notice (or such longer period as is reasonably required in the circumstances), the Landlord may re-enter the Premises and terminate this Lease.
10.2 Termination does not release the Tenant from liability for rent, outgoings, and other amounts owing up to the date of termination, or for make good obligations.
10.3 The Landlord must take reasonable steps to mitigate its loss after termination.
11. ASSIGNMENT AND SUBLETTING
11.1 The Tenant must not assign, transfer, or sublet this Lease or grant any licence over the Premises without the prior written consent of the Landlord (not to be unreasonably withheld or delayed).
11.2 Any assignment or subletting does not release the Tenant from its obligations under this Lease unless the Landlord expressly agrees in writing.
12. GENERAL PROVISIONS
12.1 This Lease is governed by the laws of [State/Territory], Australia, and the parties submit to the exclusive jurisdiction of the courts of [State/Territory].
12.2 Any dispute must be referred to mediation before either party commences court or tribunal proceedings, unless urgent relief is required.
12.3 This Lease constitutes the entire agreement between the parties and supersedes all prior representations, warranties, and negotiations.
12.4 This Lease may only be varied by written agreement signed by both parties.
EXECUTION
This Lease is signed by the parties:
LANDLORD
[Landlord Name]
ABN: [Landlord ABN]
TENANT
[Tenant Name]
ABN: [Tenant ABN]
Landlord
________________
Signature
Date: ________________
Tenant
________________
Signature
Date: ________________
What Is a Warehouse / Industrial Lease Agreement (Australia)?
A Warehouse / Industrial Lease Agreement in Australia grants a tenant the right to occupy commercial premises and fixes the rent, term, outgoings, and repair obligations between landlord and tenant, governed by the Real Property Act 1900 (NSW).
Unlike retail leases, warehouse and industrial leases are not subject to the mandatory protections of the Retail Leases Act in any Australian state. This gives both landlords and tenants considerable flexibility to negotiate terms that suit the specific operational requirements of the tenancy — including the permitted use, loading dock arrangements, hardstand access, dangerous goods storage, environmental compliance obligations, and make good requirements. This flexibility also means that tenants have no automatic access to the specialist retail tenancy tribunals or the mandatory disclosure obligations that apply in the retail sector.
The economic scale of industrial leasing in Australia has grown significantly over the past decade, driven by the e-commerce and logistics boom. Large distribution centres, last-mile delivery hubs, and cold chain facilities are among the most sought-after commercial property assets in the country. The lease terms for these facilities are often long — typically 3 to 10 years with options — and involve sophisticated negotiation around rent review mechanisms, outgoings structures, capital expenditure contributions, and make good provisions.
The Australia Warehouse / Industrial Lease Agreement (Australia) template is designed to cover the full range of warehouse and industrial tenancy needs, from small owner-operated storage units to large-scale logistics facilities, across all Australian states and territories.
The legal framework governing the Warehouse / Industrial Lease Agreement (Australia) in Australia draws on several key statutes and regulatory bodies. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Section 52 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010) prohibits misleading conduct in property transactions. The Foreign Acquisitions and Takeovers Act 1975 (Cth) requires FIRB approval for foreign purchasers. Parties executing a Warehouse / Industrial Lease Agreement (Australia) in Australia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Real Property Act 1900 (NSW) sets the foundational requirements.
When Do You Need a Warehouse / Industrial Lease Agreement (Australia)?
A Warehouse and Industrial Lease Agreement is required whenever industrial, warehouse, or logistics premises are leased in Australia. The agreement is essential at the commencement of any tenancy, but the investment of time in getting it right pays dividends throughout the entire lease term.
For landlords, the agreement is the primary mechanism for protecting the value of the industrial property. A well-drafted lease protects the landlord's income stream through clear rent review mechanisms, confirms the tenant meets outgoings obligations, limits the landlord's liability for the tenant's operations, and — critically — includes make good obligations that confirm the premises are returned in an acceptable condition at the end of the lease. Industrial premises can sustain significant damage from warehouse operations: forklift damage to floors and walls, racking penetrations in the slab, modifications to sprinkler systems, and chemical contamination from industrial processes. The make good clause is the landlord's primary protection against these risks.
For tenants, the agreement defines the operational parameters of the tenancy. The permitted use clause must be broad enough to cover all current and reasonably foreseeable business activities — a clause that is too narrow can prevent the tenant from adapting their operations as their business evolves. The outgoings obligations must be clearly understood and budgeted — industrial outgoings can be substantial, particularly in modern facilities with sophisticated fire suppression, environmental monitoring, and security systems. And the make good obligations must be costed before the lease is signed, not at the end of the term when it may be too late to budget for them.
The agreement is also needed when an existing industrial tenancy is being renewed, assigned to a new tenant, or sublicensed — each of these events requires a clear written record of the new or varied terms.
What to Include in Your Warehouse / Industrial Lease Agreement (Australia)
The key elements of an Australian Warehouse and Industrial Lease Agreement reflect the unique operational, regulatory, and financial characteristics of industrial property.
Premises description and permitted use: The premises must be precisely described, including the warehouse area (with height clearance), office and amenities area, number and type of loading bays (dock-level and grade-level), hardstand area, and car parking. The permitted use must precisely match the tenant's operations — and must comply with the applicable local planning scheme zoning. Industrial zones in Australia (typically I1 light industrial, I2 general industrial, and I3 heavy industrial under various state planning schemes) have different permitted uses, and operating outside the permitted use is a planning offence as well as a lease breach.
Dangerous goods provisions: If the tenant's operations involve the storage or handling of Class 1–9 dangerous goods, the lease must include specific provisions governing the type, class, and maximum quantity of dangerous goods permitted, the compliance standards required (WHS Regulations, AS 1940, AS/NZS 3833), and the environmental liability allocation between the parties.
Outgoings structure: Industrial leases in Australia are typically fully net — the tenant pays base rent plus all or most outgoings. The precise list of recoverable outgoings, the process for estimating and reconciling outgoings each year, and the exclusions (land tax, structural capital expenditure) must be clearly defined.
Rent review mechanism: A fixed percentage review (typically 3–4% per annum), a CPI-linked review, or a market rent review are the most common mechanisms in the Australian industrial market. The ratchet provision — confirming rent does not fall below the previous year's level — is standard.
Bank guarantee and security: Industrial landlords typically require a bank guarantee equivalent to 3–6 months' rent as security, rather than (or in addition to) a cash bond.
Make good: The make good obligation is the most heavily negotiated provision in many industrial leases. The scope of make good — whether it requires return to original condition, removal of all fit-out, or merely return to good and tenantable repair — has major cost implications for the tenant and must be clearly specified before the lease is signed.
WHS and environmental compliance: The tenant's primary WHS obligations as the person in control of the premises, and their environmental compliance and remediation liability, must be clearly allocated in the agreement.
Additional compliance elements for a Warehouse / Industrial Lease Agreement (Australia) used in Australia include: Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Section 52 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010) prohibits misleading conduct in property transactions. The Foreign Acquisitions and Takeovers Act 1975 (Cth) requires FIRB approval for foreign purchasers. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
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year = {2026},
howpublished = {\url{https://forms-legal.com/australia/real-estate/leases/au-warehouse-lease-agreement}},
note = {Free legal document template. Based on Real Property Act 1900 (NSW)}
}Also available for these jurisdictions:
Frequently Asked Questions
No. Warehouse and industrial leases in Australia are commercial leases governed by the general law of contract, not by the Retail Leases Act (or equivalent state legislation). The Retail Leases Act applies to retail shop leases — premises used for the sale of goods or services to the public. Pure warehouse, storage, and distribution premises are not retail premises and do not attract the protections of retail tenancy legislation. This means the parties have considerable freedom to negotiate their terms, but also that the tenant has no access to the specialist retail tenancy tribunals or the mandatory disclosure protections that retail tenants enjoy. Under Australia law, Real Property Act 1900 (NSW), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
Industrial leases in Australia are almost invariably net leases, meaning the tenant pays most or all outgoings in addition to the base rent. Typical outgoings passed to the industrial tenant include: council rates and charges; water and sewerage rates and usage charges; building insurance premium (the landlord effects the policy, the tenant reimburses the premium); body corporate or strata levies (if applicable); common area cleaning and maintenance; security services; fire services maintenance and testing; and all utilities consumed within the premises (electricity, gas, water, waste removal). Land tax is generally excluded from outgoings and remains the landlord's cost. Capital expenditure on the building structure is also typically excluded. Under Australia law, Real Property Act 1900 (NSW), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
The storage of dangerous goods in Australian warehouses is regulated by the Work Health and Safety (WHS) Regulations in each state and territory, which implement the model WHS Regulations. The WHS Regulations adopt the Globally Harmonised System (GHS) of Classification and Labelling of Chemicals, classifying dangerous goods into nine classes (explosives, flammable gases, flammable liquids, etc.). Tenants storing scheduled quantities of dangerous goods must comply with Australian Standard AS 1940 (flammable and combustible liquids), AS/NZS 3833, and may be required to notify the relevant WHS regulator. The lease agreement should require the tenant to obtain all necessary dangerous goods licences and to install any required bunding, ventilation, or fire suppression systems. Under Australia law, Real Property Act 1900 (NSW), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
Make good obligations in Australian industrial leases require the tenant to restore the premises to a specified condition at the end of the lease. In a warehouse context, this is often the most significant and costly obligation the tenant faces — particularly if they have installed mezzanine floors, racking systems, office partitioning, sprinkler modifications, or concrete penetrations. Make good typically requires removal of all tenant fit-out and repair of any damage caused (including filling and sealing concrete floor penetrations caused by racking feet). Tenants should obtain a make good cost estimate before signing an industrial lease and factor this into their overall tenancy cost. Make good disputes are among the most common causes of litigation at the end of commercial leases in Australia.
Both parties have WHS obligations, but the primary obligation falls on the person who has management or control of the workplace — which in most industrial leases is the tenant. Under the model Work Health and Safety Act (adopted in all states and territories except Victoria, which has its own OHS Act), the tenant as the person conducting a business or undertaking (PCBU) at the premises must requires the workplace is safe for workers, contractors, and visitors. The landlord, as the owner of the premises, also has WHS duties in relation to the structural integrity of the building and common areas. The lease agreement should clearly allocate WHS responsibilities between the parties to avoid disputes in the event of a workplace incident. Under Australia law, Real Property Act 1900 (NSW), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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