PERTH, WESTERN AUSTRALIA – WA small business owners are being urged to review their commercial leases as rising rents and tightening vacancy rates across Perth and regional WA create new financial risks for tenants, according to multi-service law firm DFG Legal.
Recent industry forecasts point to prime office rents in Perth climbing by an average of more than five per cent annually over the next several years, with retail and industrial sectors also under upward pressure. For small businesses already navigating higher operating costs, these increases are adding significant strain — and in many cases, exposing lease terms that tenants didn’t fully understand when they first signed.
Damian Gordon, Principal at DFG Legal, says the firm is seeing a growing number of commercial tenants seeking advice only after disputes have already escalated.
“Most tenants we meet are successful operators focused on running their business, not reading legal clauses line by line,” Mr Gordon said. “It’s usually at a rent review, a renewal, or the start of a dispute that they discover the lease they signed years ago doesn’t protect them the way they assumed.”
Common lease traps for WA small business owners
DFG Legal points to several recurring issues catching commercial tenants off guard in the current WA market:
Rent review clauses that permit above-market increases, sometimes compounding fixed uplifts with CPI adjustments
Make-good obligations that can cost tens of thousands of dollars at the end of a lease
Restrictive assignment and subletting clauses that limit a tenant’s ability to exit the lease or sell the business
Personal guarantees that expose business owners to liability beyond their company structure
Outgoings and recoverable costs that are poorly defined or broader than the tenant anticipated
“These aren’t hidden traps designed to catch tenants out — they’re standard commercial lease provisions,” Mr Gordon said. “But in a rising market, clauses that seemed routine at signing can have a real financial impact on the business.”
The firm is encouraging WA commercial tenants to have their leases reviewed before signing, before renewal, and at the first sign of a dispute with a landlord. Early legal advice, Mr Gordon notes, is almost always significantly cheaper than litigation.
DFG Legal operates from three offices across Western Australia — in South Perth, Armadale and Mandurah — and provides commercial, property and business law services to small and medium business owners throughout the state.
More information about DFG Legal’s commercial and property law services is available at https://dfglegal.com.au.
About DFG Legal
DFG Legal is a multi-service Western Australian law firm with more than 65 years of collective legal experience. The firm practises across commercial law, property law, business law, employment law, wills and estates, and related areas, with offices in South Perth, Armadale and Mandurah. DFG Legal is known for plain-English legal advice and for supporting small business owners and individuals through complex legal matters.
Media ContactCompany Name: DFG LEGALContact Person: Chris GordonEmail: Send EmailPhone: +61 8 9367 3331Address:Suite 44/11 Preston Street City: ComoState: WACountry: AustraliaWebsite: https://dfglegal.com.au/
