Demystifying lease structures so occupiers can compare apples with apples. 

When searching for office space, tenants often focus on headline rent – but that’s just the tipoff the iceberg. Beneath the surface lie incentives, operating costs, and lease structures that can dramatically affect the true cost of occupancy. 

At Brokered, we help tenants cut through the noise. Here’s wheat you need to know to make confident, like-for-like comparisons.

Gross vs Net Rent: What’s the Difference

Gross Rent includes outgoings such as building insurance, cleaning and maintenance. 

Net Rent excludes these costs – meaning tenants pay them separately. 

Tip: Always ask for a breakdown of outgoings when reviewing net rent offers. 

Incentives: Not Just Free Rent

Landlord’s often offer incentives to attract tenants – especially in competitive markets. These may include: 

• Rent-free periods (e.g. 3-6 months)

• Fitout contributions (cash or turnkey)

• Lease flexibility (early termination or expansion rights)

But incentives vary widely by building, lease term, and negotiation strength. A higher rent with generous incentives may be more cost-effective than a lower rent with none. 

Hidden Costs to Watch For

Beyond rent and outgoings, tenants should be aware of: 

• Make good obligations: Costs to restore the space at lease end

• Security deposits and bank guarantees

• Legal Fees: For lease review and negotiation

• Fitout overruns: If Landlord contributions fall short

• Annual rent escalations: CPI and fixed increases.

Brokered Tip: We model total occupancy cost over the full lease term – not just year one. 

Comparing Apples with Apples

To truly compare options, tenants should calculate:

• Effective rent: Rent after incentives, averaged over the lease

• Total occupancy cost: Rent + outgoings + Fitout + Hidden costs

• Cost per sqm per annum: Standardized metric for benchmarking

We help occupiers build side-by-side comparisons that factor in all variables – not just the headline numbers. 

Independent Advice Matters

At Brokered, we work exclusively for occupiers – no conflicts, no commissions from Landlords. Our goal is simple: help you secure the right space, on the right terms, with full transparency. 

Want to understand what you’re really paying? Book a Discovery Call and lets unpack the numbers together.