Australian commercial leases on hospitality premises have predictable review patterns: a market review every 5 years, CPI in between, and an option period at renewal that landlords often try to push above market.
Twelve months out
If your option is in 12 months or fewer, send this letter now:
Dear [landlord], We’re considering exercising the option in our lease at [date]. Before we make that decision, we’d like to understand: (a) the rent figure that would apply, (b) any changes to outgoings, (c) any willingness to negotiate the option terms (length, review mechanism). Happy to meet to discuss. Regards.
Why this works
The landlord knows a fit-out switch costs them 6+ months of vacancy. Starting the conversation early — without ultimatum — gives you the leverage of optionality. Most negotiations move 5–15% your way.