Contract clause
Relocation clause in a lease: a retail sample
A relocation clause in a lease lets the landlord move the tenant to other premises in the same building or centre, usually for a redevelopment or refurbishment. Australian retail leases laws control it: the lease must contain the right, the tenant must get written notice with details, and the landlord bears the reasonable costs.
A relocation clause lets a shopping centre or building owner move a tenant to another shop or suite, usually to redevelop part of the property. In Australian retail leases, state laws only allow it if the lease says so, and require written notice, comparable premises and payment of the tenant's reasonable relocation costs, with an option to leave instead.
Nuwan Madhusanka · Co-founder
3 min read · Published
Sample clause
Written for retail lease of a nail salon at Merri Creek Plaza, a fictional Melbourne shopping centre planning a food court refurbishment.
Relocation. (a) The Landlord may require the Tenant to move to other premises in the Centre if the Landlord intends to refurbish, extend or redevelop the part of the Centre that includes the Premises. (b) The Landlord must give the Tenant written notice with details of the refurbishment and of the proposed new premises, including their location, area, layout and the proposed rent, at least 3 months before the relocation date. (c) The new premises must be reasonably comparable to the Premises in area, frontage and exposure to customer traffic, and the rent must be no higher than the rent for the Premises. (d) The Landlord must pay the Tenant's reasonable costs of relocating, including fitting out the new premises to a standard comparable to the existing fit out. (e) Instead of relocating, the Tenant may end this lease by written notice given within 1 month after receiving the Landlord's notice.
Sample wording, not legal advice.
Variants
Office lease relocation
Office buildings outside the retail leases laws, where the parties agree the terms with more freedom.
The Landlord may relocate the Tenant once during the Term to premises in the Building of similar area and quality, on 3 months' notice, and will pay the reasonable costs of the move and of an equivalent fit out.
No relocation right
A tenant with strong bargaining power, or a location that is the whole point of the business, such as a corner site.
The Landlord has no right to require the Tenant to relocate to other premises during the Term or any further term.
Relocation with rent relief
A tenant moved to a less prominent spot, where a rent reduction compensates for lost trade.
If the new premises have less frontage than the Premises, the rent for the new premises is reduced by 10 per cent for the remainder of the Term.
What to negotiate
Comparable means trade, not just area
A shop of the same size at the back of a centre can lose half its passing trade. Tenants should define comparable premises by area, frontage, exposure to customers and access, and ask for a rent reduction if the new site is less prominent. A precise definition prevents the most common relocation dispute.
Who pays, and for what
Retail leases laws generally require the landlord to pay the tenant's reasonable costs of relocating. The clause should list them: the new fit out to an equivalent standard, moving, new signage, reprinting stationery and the cost of closing for the move. A tenant should also ask for compensation for trading days lost.
The right to leave
Tenants often prefer to end the lease rather than move. The clause should give a clear window to terminate, with no penalty and return of any security, and say whether the landlord compensates a tenant who leaves. Retail leases laws in several states give this right whatever the lease says.
The risk of leaving it out
A landlord whose lease has no relocation clause generally cannot move a tenant during the term without agreement, so a redevelopment may stall until leases expire or tenants are bought out. A tenant whose lease has a vague clause can be moved to a poor site with no clear compensation, which can damage the business long after the move.
What retail leases laws require
Australian states regulate relocation in retail leases. In Victoria, the Retail Leases Act 2003 applies to leases of retail premises, and the Victorian Small Business Commission helps landlords and tenants with disputes under it. The usual protections across the states are that relocation is allowed only if the lease provides for it and only for a genuine refurbishment or redevelopment, the tenant receives written notice with details of the proposed premises, the landlord pays the reasonable costs of relocation, and the tenant can end the lease instead. Law checked on 21 October 2026. This page explains how the law works and is not legal advice.
State notice and costs at a glance
Victoria: the Retail Leases Act 2003 sets the relocation rules for retail premises, with the Small Business Commission for disputes. New South Wales: the Retail Leases Act 1994 has its own relocation section with notice and costs rules. Queensland: the Retail Shop Leases Act 1994 sets relocation terms for retail shops. Each sets its own notice and procedure, so a centre with shops in several states needs a relocation clause checked against each Act rather than one national form.
Relocation and demolition
Relocation moves the tenant to other premises; a demolition clause ends the lease early because the building is to be demolished or substantially refurbished. Leases often have both, and the landlord chooses which to use. The demolition clause page covers ending the lease; this page covers moving the tenant within the property while the lease continues.
Where the clause sits in a generated document
Commercial and retail leases carry this clause among the landlord's rights. When asking the AI document generator for a lease, say whether a relocation right is included, the notice period, the definition of comparable premises, the costs the landlord pays and the tenant's right to end the lease instead.
Documents that carry this clause
Questions people ask
Can my landlord move my shop?
Only if your lease contains a relocation clause and, for a retail lease, the state's retail leases law is followed: written notice with details of the new premises, comparable premises, payment of your reasonable relocation costs and, usually, a right to end the lease instead.
How much notice must a landlord give to relocate a tenant?
It depends on the state's retail leases law and the lease. Leases commonly give at least 3 months, and the retail leases laws set minimum notice and require the notice to describe the proposed new premises in enough detail for the tenant to decide.
Who pays for the new fit out?
In a retail lease, the landlord generally pays the tenant's reasonable costs of relocating, which usually includes fitting out the new premises to a comparable standard. The lease should list the costs covered, to avoid argument about signage, stock moving and lost trading days.
Can I refuse to relocate?
Usually you cannot simply refuse if the lease has a valid relocation clause, but retail leases laws commonly let you end the lease within a set period after the notice instead of moving. Check the timing, because the right can be lost if the deadline passes.
Does a relocation clause apply to office leases?
Office leases outside the retail leases laws are governed by their own terms. A relocation clause can still be included, and its notice, comparable premises and costs terms are whatever the parties agree, so a tenant should negotiate them carefully.
Put the clause in a finished document
The button opens the document generator with a starting description already filled in. Change it to match your own agreement before you run it.
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Written and checked by the OneCraft team. Last checked .