We invite you to check our website from time to time, for new Questions and Answers.
 Air rights
Area - Allocation per Employee
Area - Gross lettable
Area - Net lettable
Assignment
Bank Guarantee
Base Date
Buyers Agent
Caps & Collar
Caveat Emptor
Change of Use
Easement
Fit Out
Interim development order
Land Usage
Lease - Heads of Agreement
Lease - Net
Lease review
Lease - Sub
Outgoings - Secondary
Outgoings - Statutory
Ratchet Clause
Real Estate Institute of NSW
Rent
Rent - Gross effective
Rent - Gross face
Rent - Incentives
Rent - Net face
Tenancy at Will
Tenants Representative
Warehouse - Primary
Warehouse - Secondary
Air rights
The rights concerning the building upon or occupancy of the vertical space above
the specified site.
Area - 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.
Area - Gross lettable
Measured in square meters is the floor space contained within each
tenancy at each floor level, from the dominant portion of the outside faces of walls, to the centre line of internal common area
walls.
Area - Net lettable
Measured in square meters, is the floor space between the internal finished
surfaces of the permanent internal walls and the internal finished surfaces of the dominant portions of the permanent outer
building walls, including window frames, structural columns but excludes toilets, cupboards, plant room, kitchen, public spaces,
foyers, atria where they are provided as standard facilities in the building.
Assignment
The transfer of a property, lease, rights, interest or sometimes liability from one
party to another.
Bank Guarantee
Required by the lessor to protect their interests should the lessee default in
payment of the agreed rent during the lease term, varying between 3 and 12 months.
Base date
The reference date for determining the increase in outgoings.
Buyers Agent
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. WIKIPEDIA
Cap & Collar
A method used in some market review of the rent, putting a nominated cap or
maximum amount by which the rent can be increased or a collar being the maximum the rent can be decreased on the nominated market
review date (base date).
Caveat Emptor
Let the buyer beware.
Change of Use
Change of use means development application to the Council by the
lessee, to change the use of the property in order to carry out their specific type of business.
Easement
The contractual right of one person to use a portion of another person's land, usually
as a drive for access or as a run off for water.
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
Interim development order
Allows a planning authority to control development of an area before
the final scheme is gazetted.
Land Usage
The usage determined by the local council’s zoning rules applicable at
the time. Zoning levels vary from council to council.
Lease - Heads of Agreement
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.
Lease - Net
Is all the property's outgoings in addition to the agreed payable rent.
Lease 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.
Lease - Sub
A property which is already leased is leased again, but not for a longer period
than the unexpired part of the original lease.
Outgoings - Secondary
Costs associated with the operation and maintenance of the building
such as air-conditioning and lift maintenance.
Outgoings - Statutory
Include municipal, water, sewerage and usage rates, parking levies and
land tax.
Ratchet Clause
A “ratchet clause", in relation to a provision in a lease for
determining rent variation 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.
Real Estate Institute of NSW
There are many advantages in dealing with a member of the REINSW.
- 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.
Rent
Rents are normally quoted in dollars on a square meter basis per annum.
Rent - Gross effective
The rent payable net of all incentives plus outgoings.
Rent -Gross face
The rent payable excluding incentives but includes outgoings.
Rent - 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.
Rent - Net face
Is the agreed rent before allowing for incentives e.g. rent-free-period.
Tenancy at Will
Is when the tenancy can be closed at will by either the lessor or lessee.
Tenants Representative
We are a tenant's representative as well as a buyer's agent
,delivering the same benefits and services to a lessee as we do to a buyer client.
Warehouse - Primary
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.
Warehouse - Secondary
A secondary warehouse is a conventional industrial facility located in
an industrial area measuring approximately 2,000m2 to 5,000 m2.
|
