BizLeaseCheck
New Zealand Commercial Lease Guide

Commercial Lease Guide for New Zealand

A practical, tenant-focused guide to New Zealand commercial leases — not legal advice.

Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team

Analyze My NZ Lease

Not legal advice. Use this as a checklist and discuss with a qualified professional.

What to know before you sign

New Zealand commercial leasing runs on a near-universal industry document — the Auckland District Law Society (ADLS) Deed of Lease, currently in its 7th edition — which gives both parties a familiar starting framework but still leaves the economics in the schedule.

New Zealand tenants need to focus on the Operating Expenses (opex) schedule, the Final Expiry Date and Rights of Renewal, 15% GST, the Property Law Act 2007 (section 245 cancellation notices, section 261 assignment consent test), and the post-COVID rent abatement clause at clause 27.5 of the ADLS 6th/7th edition.

Major markets
Where commercial activity concentrates.
  • Auckland
  • Wellington
  • Christchurch
  • Hamilton
  • Tauranga
Common lease types
Typical structures and what to watch.
  • ADLS Deed of Lease 7th edition (industry standard for office, retail, industrial)
  • Bespoke deed of lease (institutional landlords with custom terms)
  • Sub-lease using ADLS form (head lease consent required under PLA 2007 s.261)
  • Heads of Agreement / Agreement to Lease (binding pre-lease commitment)
Cost drivers
Items that often create surprise bills.
  • Operating Expenses (opex) — rates, building insurance, building management, repairs
  • GST at 15% on rent and opex (recoverable for GST-registered tenants)
  • Rent reviews (typically 2-yearly market or CPI; ratchet clauses common — negotiate out)
  • Bond or bank guarantee (1–3 months rent + opex + GST)
  • Make-good / reinstatement at expiry under clause 19 of ADLS lease
  • Earthquake strengthening costs (post-Christchurch; check building IL rating and NBS%)

Key things to watch in New Zealand

Lease structures and statutory protections vary by country. Here are top issues we see for tenants in New Zealand:

ADLS (Auckland District Law Society) lease form
The ADLS Deed of Lease is the dominant standard lease in New Zealand. The current 7th edition has tenant-favourable defaults compared to earlier editions — but most clauses are negotiable. Confirm which edition you are signing.
Property Law Act 2007
Section 245 governs landlord remedies for tenant breach — landlords must serve a notice and give the tenant time to remedy before cancelling the lease. Section 261 governs the test for landlord assignment consent.
Outgoings, opex, and GST
Most NZ commercial leases pass through operating expenses (opex) as separate payments. GST (15%) applies to rent and opex. Negotiate audit rights and capital-item exclusions.
Rights of renewal
Renewal rights are common (typically 2–3 further terms of 3–6 years). Strict written notice deadlines apply — calendar them immediately on signing.

Negotiation checklist

Review the opex schedule line by line
The ADLS lease lets the parties tick which opex categories apply. Strike out capital expenditure, structural repairs, sinking funds, leasing fees, and any item that is really the landlord's asset cost rather than an operating cost.
Negotiate down the ratchet
The ADLS rent review clause is upward-only by default. Insert an amendment so the rent can also go down at market review (or use CPI with a cap and floor).
Rights of renewal and Final Expiry Date
Stack multiple Rights of Renewal (e.g. 3 + 3 + 3) to extend optionality without committing. Diary the renewal notice date — late exercise voids the right.
Earthquake / seismic clause
Confirm the New Building Standard (NBS) percentage and Importance Level (IL). For buildings under 67% NBS, negotiate landlord obligations to strengthen and rent abatement / termination rights if the building becomes uneconomic to occupy.
Clause 27.5 no-access abatement
The ADLS 6th edition introduced (and the 7th edition retains) a "fair proportion" rent abatement where the tenant cannot access the premises through no fault of their own. Confirm this clause is present and not deleted.
Assignment consent under PLA 2007 s.261
Section 261 imposes a statutory reasonableness test on the landlord's consent to assignment. Reinforce this contractually and limit landlord costs and conditions to commercially reasonable amounts.
Define reinstatement (make-good) at clause 19
Reinstatement under the ADLS lease can be expensive. Attach a Premises Condition Report at the start, agree what fitout stays vs goes, and consider a cash payment in lieu where the next tenant will alter the space anyway.

Common landlord traps

  • Uncapped pass-throughs / outgoings: Operating costs, taxes, and insurance can rise year-to-year without a cap unless negotiated.
  • End-of-term reinstatement / make-good / dilapidations: Costs can be substantial; negotiate a Schedule of Condition or carve-outs.
  • Notice deadlines: Renewal, break, and option rights typically depend on strict written notice windows — calendar at signing.
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Official resources

business.govt.nzAuckland District Law Society Inc (ADLS)Inland Revenue (IRD) — GSTMBIE — earthquake-prone buildings

Other regions

Frequently asked questions

What is the ADLS Deed of Lease?

The ADLS Deed of Lease (currently 7th edition) is a standard-form commercial lease published by the Auckland District Law Society and used in the vast majority of New Zealand commercial leasing. Knowing where to negotiate the schedule items matters more than re-drafting the deed itself.

Can my landlord cancel my New Zealand lease if I miss rent?

Cancellation for rent default requires the landlord to give a section 245 notice under the Property Law Act 2007 and the tenant 10 working days to remedy. For other breaches a section 246 notice and longer cure period apply, and the tenant can apply for relief against forfeiture.

Are upward-only rent reviews enforceable in New Zealand?

Yes — ratchet clauses are not prohibited in New Zealand and are the default in the ADLS lease. Tenants routinely negotiate the ratchet out, particularly on longer terms or in softer markets.

What is the "no-access" clause and why does it matter?

Clause 27.5 of the ADLS 6th and 7th edition Deed of Lease allows a fair proportion of rent and outgoings to abate when the tenant cannot access the premises through no fault of their own. It was introduced after the Christchurch earthquakes and proved important during COVID-19 lockdowns.

Does BizLeaseCheck provide legal advice?

No. It helps you spot common risks and compare leases quickly, but it is not legal advice. Use it alongside a New Zealand commercial lease lawyer for your situation.