We invite you to check our website from time to time, for new Questions and Answers.
 What should a buyer’s agent minimum qualifications be?
We need to lease a property. Can you help?
Why deal with a REINSW member?
What is the difference between a primary warehouse and a secondary warehouse?
What is work space ratio and how much area in square meters is needed for
allocation per employee?
What is land usage?
What is a “Heads of Agreement” document?
What is “Tenant Improvement” and “Fit-out”?
How is the rent quoted?
What are incentives?
What do the terms “STCA” and “DA – change of use” mean?
What is a Rent Review?
What is a “ratchet clause”?
What should a buyer’s agent minimum qualifications be?
A buyer’s agent must be the holder of a valid real estate agent license.
A buyer’s agent must have professional indemnity insurance.
A buyer’s agent must be independent of any selling agent, builder, or developer.
We need to lease a property. Can you help?
Yes we can. We are a tenant's representative as well as a buyer's
agent,
delivering the same benefits and services we would to a buyer
client.
Why deal with a REINSW member?
There are many advantages in dealing with a member of the Real Estate Institute of NSW.
- REINSW is one of the largest professional associations for real estate agents in Australia.
- REINSW members follow a Code of Conduct that outlines the ethical duties and responsibilities of real estate agents. It encourages agents to follow best practices and to be fair and responsible in their agency practices.
- If you have a problem about the behaviour or actions of an REINSW member you can take your concerns to the REINSW for investigation.
REINSW has an Accreditation program. This means you can be assured of experience and skills in a specialist area when you choose an agent who is accredited.
What is the difference between a primary warehouse and a
secondary warehouse?
A primary warehouse is a modern industrial facility located in a prime industrial precinct, generally measuring between 3,000m2 and 10,000 m2. Its office component can comprise up to 25% of the area.
A secondary warehouse is a conventional industrial facility located in an industrial area measuring approximately 2,000m2 to 5,000 m2.
What is work space ratio and how much area in square meters is needed for allocation per employee?
It is the measurement of space efficiency per floor, calculated by dividing the total internal lettable area by the planned number of staff occupying the floor space.
Depending on the mix of staff and the type of business, the range can be from 12 square meters to 20 square meters per employee.
What is land usage?
The usage determined by the local council’s zoning rules applicable at the time. Zoning levels vary from council to council.
What is a “Heads of Agreement” document?
It is a document specifying some items discussed and agreed to by the lessor and lessee during the negotiation of a contract and subject to the agreement of further terms in the future. It is used as the basis for setting out the lease but it is not binding on either party, and is therefore not enforceable as a contract by one party against the other.
What is “Tenant Improvement” and “Fit-out”?
Typically commercial tenancies are complete with suspended ceilings, light fittings, carpeting and painted walls. Curtains or blinds may be provided and ducted skirting with power points. Partitions and furnishings may be offered by the previous tenancy.
Where no fit-out is provided, the number of weeks required for fit-out is relative to the size of the tenancy.
Less than 1000 m2 6-8 weeks
1000 to 3000 m2 8-12 weeks
3000 + m2 16-24 weeks
How is the rent quoted?
Rents are normally quoted in dollars on a square meter basis per annum.
Rents are quoted as gross (inclusive of all outgoings and service charges paid for by the tenant) or net (exclusive of all outgoings and service charges paid for by the tenant).
Outgoings and service charges include (but are not limited to) statutory charges e.g. council and water rates, land tax. They also include (but are not limited to) operating expenses e.g. insurance, repairs, air conditioning, lifts, electricity, security, pest control, cleaning and property management.
What are incentives?
Incentives vary based on the market, the strength of the tenant’s credit rating (as perceived by the landlord), the length of the lease, the desirability of the tenant and the amount of space to be leased. Incentives may include a rent free period, takeover of an existing lease, identification rights, additional time to fit-out or a fit-out allowance.
What do the terms “STCA” and “DA – change of use” mean?
“STCA” means Subject to Council Approval.
“DA – change of use” means development application by the lessee to change the use of the property in order to carry out their specific type of business.
What is a Rent Review?
It is the mechanism by which the rent is increased or decreased annually according to the terms of the tenancy agreement.
There are various methods for determination e.g. market review, CPI, pre-determined percentage or dollar value. There
are also several types of rent review - e.g. Ratchet upwards review whereby rent can not fall below the current passing rent
at any time. Another type is the Caps and Collar review where the rent has either been negotiated to rise to a specified
capped rate or fall below the current market to a specified collared level.
What is a “ratchet clause”?
A “ratchet clause", in relation to a provision in a lease for determining rent variations in such a way that rent might decrease, means a provision in that lease that has the effect of preventing, or giving a person the power to prevent, that decrease.
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