How to Review a Commercial Lease in Ireland

Why a Lease Review Matters

A commercial lease is typically one of the largest financial commitments a business makes. Unlike residential tenancies, commercial leases in Ireland are largely unregulated - the terms are whatever the parties agree. This means every clause matters, and a single overlooked provision can cost tens of thousands of euros over the lease term.

Rent Review Clauses

Rent review clauses determine how your rent changes over time. The key question is whether the review is upward-only (rent can only increase or stay the same) or open-market (rent can go up or down). Upward-only reviews were banned for new leases by the Land and Conveyancing Law Reform Act 2009, but pre-2010 leases may still contain them. Check the review frequency - annual, every 3 years, or every 5 years - and the benchmark used.

Break Clauses

A break clause gives you the right to exit the lease early. But many break clauses come with conditions that make them almost impossible to exercise - such as requiring all rent to be paid up to date, all repair obligations to be satisfied, or written notice 12 months in advance. Check whether the conditions are achievable in practice.

Repair Obligations (FRI)

An FRI (Full Repairing and Insuring) lease makes you responsible for all repairs to the property, including structural repairs, and for insuring the premises. This is standard in Ireland but significantly increases your financial exposure. Always get a schedule of condition before signing - this records the state of the property at the start and limits your repair obligation to maintaining (not improving) that condition.

Service Charges and Hidden Costs

Service charges in multi-tenant buildings can be a major hidden cost. Check what is included (heating, security, cleaning, management fees), whether there is an annual cap, how disputes about charges are resolved, and whether you contribute to a sinking fund for major repairs. Some service charge clauses give the landlord almost unlimited discretion over what costs are passed through.