Relocating your medical practice: key legal and commercial considerations before you move

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Tuesday, 18 Aug 2026

Relocating a medical practice can be an exciting opportunity to expand services, improve facilities and position your practice for future growth. Relocation decisions are often driven by expansion, succession planning, changing demographics or landlord pressures, however, it can be easy to underestimate the legal and commercial risks involved.

Before committing to a relocation, practice owners should carefully assess their existing lease obligations, understand the costs involved, consider how the move may affect sub-tenants, patients and staff and ensure appropriate planning is undertaken well in advance.

Start with your existing lease

A key factor to consider is your existing lease obligations and how the relocation will impact the current operations of the business.

We recommend obtaining legal advice as early as possible to determine:

• whether you have a right to terminate the lease early;
• any notice periods that must be complied with;
• whether landlord consent is required to assign the lease;
• obligations to reinstate or "make good" the premises at the end of the lease;
• whether your lease is subject to the retail shop lease provisions;
• potential compensation payable (sometimes known as a ‘break fee’) for if you vacate before lease expiry; and
• whether security bonds or bank guarantees will be released.

Early termination of lease

If you intend to relocate during the term of an existing lease, it is likely you will need to negotiate and mutually agree with the landlord to end the tenancy prior to its original termination date. A lease is a binding contract and there will likely be several costs and obligations involved if you inadvertently breach the lease terms.

Generally, your options are as follows:

1. Express right to terminate lease early: Some leases permit that the tenancy can be terminated at any point, so long as the landlord is provided with sufficient notice in accordance with the lease terms.
2. No express right to terminate lease early: Where there is no right for the tenant to terminate the lease early, you will need to negotiate with the landlord to mutually agree to a surrender of the lease. This usually involves the payment of a break fee which may include compensation to the landlord for legal costs, re-letting costs, rent, incentive and fit out contributions etc.
3. Assignment of lease: You may be able to assign your obligations under the lease to a new tenant. This will usually require the landlord’s prior written consent. There are also specific procedures required to be followed if the lease is subject to retail shop leasing legislation.

Consider whether retail shop leasing legislation applies

There are important considerations if your existing premises is subject to the retail shop leasing legislation.

In Queensland, for example, medical centres, specialist suites or pathology collection centres located within shopping centres may fall within the scope of the Retail Shop Leases Act 1994 (Qld), although each situation requires careful assessment.

If the retail leasing legislation applies, additional considerations may include:

• assignment of lease requirements;
• time restrictions on when you can vacate the premises;
• disclosure statement requirements;
• restrictions on recovery of certain landlord costs;
• minimum lease term requirements in some circumstances;
• special dispute resolution procedures; and
• rights relating to relocation or redevelopment by the landlord.

Understanding whether your existing, or proposed, premises are subject to retail leasing legislation is important as it may affect both your rights and your obligations.

Relocating sub-tenants

Relocation clauses are common in sub-leases between a medical practice and pathology providers or allied health professionals. If such a clause is included in your sub-lease, it is essential that you comply with the notice requirements. Upon notice of the tenant’s relocation, the sub-tenant will often have the option to either:

(a) terminate the sub-lease from the relocation date; or

(b) enter into a new sub-lease at the alternative premises on the same or similar terms as the existing sub-lease.

If the sub-lease also falls under the retail shop lease legislation, there are considerable disclosure and notice period requirements that may apply.

Consider the impact on patients

Relocation is ultimately about people, not just the premises. Consider whether the new location will be easier or harder for patients to access. Factors include: parking availability, public transport access, disabled access, proximity to local hospitals or allied health providers and convenience for elderly patients.

A move that appears commercially attractive may create unintended barriers for patients if accessibility is reduced.

A communication strategy should be implemented well before the move. Practices should consider updates on all patient-facing communications via their website, emails, SMS notifications, social media announcements, update signage and coordination with referral networks.

Privacy considerations

Relocating a medical practice involves much more than moving furniture and equipment. Patient records contain highly sensitive health information and practices must take reasonable steps to protect that information throughout the relocation process in accordance with the applicable privacy legislation.

A poorly managed move can result in the loss, unauthorised disclosure or compromise of patient information, potentially exposing the practice to complaints, regulatory investigations and reputational damage.

Importantly, a change of premises does not change a practice's obligations regarding the security, retention and management of patient records.

Key considerations include:

• creating an inventory of all patient record storage locations;
• engaging reputable removalists experienced in handling confidential documents;
• ensuring records are not left unattended in common areas, loading docks or vehicles;
• configure backup arrangements and disaster recovery procedures;
• mail redirection arrangements should be implemented before the move takes place; and
• although patient consent is generally not required during a relocation, transparent communication remains important.

Plan well in advance

A well-executed relocation can position a practice for long-term success. However, careful legal, commercial and operational planning at the outset is often the difference between a smooth transition and an expensive mistake.

Ensuring you have frank and early discussions with key stakeholders is essential.

How we can help you

Before committing to a move, ensure that you understand your current lease obligations, carefully review any proposed lease, assess the true cost of relocation and develop a strategy to minimise disruption to patients and staff.

If you are considering relocating your medical practice, obtaining advice before signing a new lease or committing to a relocation strategy can help avoid costly surprises and ensure the move achieves its intended objectives.

Our team advises healthcare practices of all sizes. We can assist you with the complete end-to-end process including:

• approaching the current landlord;
• negotiating and signing the existing lease;
• informing the occupants;
• preparing the new head lease, sublease and occupation agreements;
• assisting with completing make-good and handover obligations; and
• moving into the new clinic.

If you have any questions, or would like more information about how we can assist you before you sign the contract, please call 1800 867 113, or to organise a confidential discussion at a time that suits you, please click here.