If you're a retail tenant in Queensland and your lease is coming up for renewal, there's a smart step you can take before committing and it could protect your business from an unexpected rent hike.
It’s called early market rent determination, and if your lease includes a market rent renewal clause, you’re likely entitled to request it under section 27A of the Retail Shop Leases Act 1994 (Qld).
Here’s what you need to know and why acting early matters.
What Is Early Market Rent Determination?
This process allows you to formally request an assessment of current market rent before deciding whether to exercise your option to renew the lease. It gives you:
- Certainty about future rent
- Time to negotiate with your landlord
- Access to an independent retail valuer if you can’t agree on the figure
It removes the guesswork and gives you clarity so you’re not signing up for a lease with rent your business can’t sustain.
Who Can Request It?
You’re likely eligible if:
- Your lease includes an option to renew or extend at market rent, and
- You’re not a “major lessee” who opted out in writing before signing the lease
If you're unsure, we can review your lease terms to confirm your position.
When Do You Need to Act?
Timing is critical. You must give written notice within the early determination window:
- For leases over 1 year: Give notice 6 to 3 months before your option to renew expires
- For leases 1 year or less: Give notice 3 to 1 month before the option expires
If you miss this window, you lose the right to request early determination and may be forced to decide on renewal without knowing what rent you’ll be paying.
What Happens After You Give Notice?
- You and your landlord have one month to try to agree on the market rent
- If no agreement is reached, an independent specialist retail valuer is appointed under the Act
- The valuer determines the current market rent as at the date of your request
- Once the rent is set, you have 21 days to decide whether to exercise your option to renew
It’s a fair and transparent process designed to protect both landlords and tenants.
Why It’s Worth Doing
Renewing a lease without knowing the future rent is a serious business risk. Early rent determination offers:
- Clarity so you can plan ahead
- Independent valuation if negotiations stall
- Protection from being locked into above-market rent
In today’s retail landscape, informed decisions are everything. This process gives you the information and the time to make the right one.
Need Advice?
Whether you need help confirming your rights, calculating the deadline, or drafting a compliant notice, The Franchise & Business Lawyers can help you navigate the process with confidence.
Want to know if early rent determination applies to your lease? Get in touch today.
