Q – Term of lease

A – Commercial Leases are generally 3-5yrs but there are instances where private landlords will look at 1-2yr leases.


Q – Deposit

A – Commercial Deposits are usually 2-3 month’s equivalent to your last month’s rent. Also influenced by credit checks and FICA documents submitted.


Q – Surety

A – Surety binds the Directors of the company to the obligations of the Lease. If no Sureties are signed usually a bigger deposit can be negotiated.


Q – Escalation

A – Escalation is the rate at which the tenants rental will increase by annually usually 8-10%


Q – T.I.A

A – T.I or Tenant Installation Allowances are given by the landlord for tenants to improve the premises. This usually includes items such as Carpets, Drywalls, Painting etc.


Q – Ops Costs

A – Ops or Operating Costs are charged by the landlord to the tenant for the running of the building. Ops costs include but are not limited to Security, Cleaning, Maintenance etc


Q – Common Area

A – Common Areas in any building usually include the Lifts, Toilets and Lobby’s/Receptions that are common to the whole building and charged to the tenant as a pro-rata percentage share.


Q – Usable vs Rentable Area

A – Usable Area is the actual space usable inside the office but doesn’t include Common Areas, which then becomes you Gross Rentable/Lettable Area (GLA)


Q – Beneficial Occupation

A – B.O. (Beneficial Occupation) is usually a rent period before the commencement date of the lease which allows the tenant to Fit-Out the premises ready for Occupation.


Q – What info do landlords require to support their application to lease.

A – FICA Docs, ie Company Registration, ID’s of Directors, Proof of Business Address and A business plan. A Business Plan is a good indicator of the level of professionalism of a potential tenant, especially if clients include financial info, as well as projections for the business, and this gives landlords a sense of confidence in the client.


Q – What additional monthly costs will the tenant be responsible for, over and above the base rental.

A – In most cases, tenants are responsible for electricity consumed on the leased premises, and in certain instances, also a pro rata share of refuse removal, cleaning, sewerage and security on top of the basic rental.