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Air rights
The rights concerning the building upon or occupancy of the vertical space above the specified site.
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.
Base Date
The reference date for determining the increase in outgoings.
Caps and 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.
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.
Gross Effective Rent
The rent payable net of all incentives plus outgoings.
Gross Face Rent
The rent payable excluding incentives but includes outgoings.
Gross Lettable Area
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.
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.
Net Face Rent
Is the agreed rent before allowing for incentives e.g. rent-free-period.
Net Lease
Is all the property’s outgoings in addition to the agreed payable rent.
Net Lettable Area
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.
Sub Lease
A property which is already leased is leased again, but not for a longer period than the unexpired part of the original lease.
The instance when a vendor is prepared to offer a buyer finance or other assistance such as staged payments.
Contact us if the above explanations do not answer your specific query.
