Glossary Of Terms
Net Lettable Area
The portion of a building where rent can be applied, representing the usable space measured up to the internal surface of external or shared structural walls. It excludes non-leasable areas such as restrooms, elevators, mechanical rooms, stairwells, entrance halls, lobbies, corridors, and structural components.
Net Lettable Area
The portion of a building where rent can be applied, representing the usable space measured up to the internal surface of external or shared structural walls. It excludes non-leasable areas such as restrooms, elevators, mechanical rooms, stairwells, entrance halls, lobbies, corridors, and structural components.
Net Lettable Area
The portion of a building where rent can be applied, representing the usable space measured up to the internal surface of external or shared structural walls. It excludes non-leasable areas such as restrooms, elevators, mechanical rooms, stairwells, entrance halls, lobbies, corridors, and structural components.
Net Rent
The base rental amount paid by a tenant, excluding additional costs like maintenance, service fees, and other expenses that contribute to total occupancy costs.
Net Rent
The base rental amount paid by a tenant, excluding additional costs like maintenance, service fees, and other expenses that contribute to total occupancy costs.
Net Rent
The base rental amount paid by a tenant, excluding additional costs like maintenance, service fees, and other expenses that contribute to total occupancy costs.
Outgoings
The expenses required to operate and maintain a property, including statutory charges (such as land taxes and council rates) and operational costs (such as insurance and property management fees).
Outgoings
The expenses required to operate and maintain a property, including statutory charges (such as land taxes and council rates) and operational costs (such as insurance and property management fees).
Outgoings
The expenses required to operate and maintain a property, including statutory charges (such as land taxes and council rates) and operational costs (such as insurance and property management fees).
Gross Rent
A rental amount that combines both net rent and outgoings, presented as a single comprehensive figure. Also known as face Rent.
Gross Rent
A rental amount that combines both net rent and outgoings, presented as a single comprehensive figure. Also known as face Rent.
Gross Rent
A rental amount that combines both net rent and outgoings, presented as a single comprehensive figure. Also known as face Rent.
Base Rent
The minimum fixed rent a tenant is obligated to pay, before factoring in operating costs, taxes, and other expenses.
Base Rent
The minimum fixed rent a tenant is obligated to pay, before factoring in operating costs, taxes, and other expenses.
Base Rent
The minimum fixed rent a tenant is obligated to pay, before factoring in operating costs, taxes, and other expenses.
Effective Rent
The actual rental amount a tenant pays after factoring in any lease incentives, such as rent-free periods or financial concessions provided by the landlord. It reflects the true cost of occupying the space over the lease term.
Effective Rent
The actual rental amount a tenant pays after factoring in any lease incentives, such as rent-free periods or financial concessions provided by the landlord. It reflects the true cost of occupying the space over the lease term.
Effective Rent
The actual rental amount a tenant pays after factoring in any lease incentives, such as rent-free periods or financial concessions provided by the landlord. It reflects the true cost of occupying the space over the lease term.
Rent Review
A process where the rental amount for a leased property is reassessed, typically at predetermined intervals during the lease term. It allows the landlord to adjust the rent based on various factors, such as market conditions, inflation, or specific lease provisions. Rent reviews can follow different methods, including:
Market Rent Review – Rent is adjusted to reflect current market rates for comparable properties.
CPI (Consumer Price Index) Adjustment – Rent increases in line with inflation.
Fixed Percentage Increase – Rent rises by a pre-agreed percentage at set intervals.
Hybrid Review – A combination of different review methods, often blending CPI adjustments with market assessments.
Rent Review
A process where the rental amount for a leased property is reassessed, typically at predetermined intervals during the lease term. It allows the landlord to adjust the rent based on various factors, such as market conditions, inflation, or specific lease provisions. Rent reviews can follow different methods, including:
Market Rent Review – Rent is adjusted to reflect current market rates for comparable properties.
CPI (Consumer Price Index) Adjustment – Rent increases in line with inflation.
Fixed Percentage Increase – Rent rises by a pre-agreed percentage at set intervals.
Hybrid Review – A combination of different review methods, often blending CPI adjustments with market assessments.
Rent Review
A process where the rental amount for a leased property is reassessed, typically at predetermined intervals during the lease term. It allows the landlord to adjust the rent based on various factors, such as market conditions, inflation, or specific lease provisions. Rent reviews can follow different methods, including:
Market Rent Review – Rent is adjusted to reflect current market rates for comparable properties.
CPI (Consumer Price Index) Adjustment – Rent increases in line with inflation.
Fixed Percentage Increase – Rent rises by a pre-agreed percentage at set intervals.
Hybrid Review – A combination of different review methods, often blending CPI adjustments with market assessments.
Effective Rent Market Review
A rental assessment that factors in lease incentives from comparable properties, establishing an effective market rent that reflects the true cost of occupancy.
Effective Rent Market Review
A rental assessment that factors in lease incentives from comparable properties, establishing an effective market rent that reflects the true cost of occupancy.
Effective Rent Market Review
A rental assessment that factors in lease incentives from comparable properties, establishing an effective market rent that reflects the true cost of occupancy.
Face Market Rent Review
A rental evaluation that excludes incentives from comparable properties, determining a face market rent based solely on the quoted lease rate.
Face Market Rent Review
A rental evaluation that excludes incentives from comparable properties, determining a face market rent based solely on the quoted lease rate.
Face Market Rent Review
A rental evaluation that excludes incentives from comparable properties, determining a face market rent based solely on the quoted lease rate.
Ratchet Clause
A lease provision ensuring that the reviewed rent cannot be lower than the rent set in the previous review period.
Ratchet Clause
A lease provision ensuring that the reviewed rent cannot be lower than the rent set in the previous review period.
Ratchet Clause
A lease provision ensuring that the reviewed rent cannot be lower than the rent set in the previous review period.
Incentive Calculation
In Australia, lease incentives are determined by calculating the total rent payable over the initial lease term (excluding annual increases) and applying the agreed incentive percentage. This can be assessed on either a net or gross basis, depending on the sub-market.
Incentive Calculation
In Australia, lease incentives are determined by calculating the total rent payable over the initial lease term (excluding annual increases) and applying the agreed incentive percentage. This can be assessed on either a net or gross basis, depending on the sub-market.
Incentive Calculation
In Australia, lease incentives are determined by calculating the total rent payable over the initial lease term (excluding annual increases) and applying the agreed incentive percentage. This can be assessed on either a net or gross basis, depending on the sub-market.
Incentive Treatment
Lease incentives are generally offered in the form of rent-free periods, rental abatements, contributions toward fit-out costs, or a combination of these. If incentives are allocated toward fit-out expenses, landlords may require an additional bank guarantee, though this is subject to negotiation.
Incentive Treatment
Lease incentives are generally offered in the form of rent-free periods, rental abatements, contributions toward fit-out costs, or a combination of these. If incentives are allocated toward fit-out expenses, landlords may require an additional bank guarantee, though this is subject to negotiation.
Incentive Treatment
Lease incentives are generally offered in the form of rent-free periods, rental abatements, contributions toward fit-out costs, or a combination of these. If incentives are allocated toward fit-out expenses, landlords may require an additional bank guarantee, though this is subject to negotiation.
Refurbished Base Building Condition
Describes the state of a commercial space at the time it is handed over to the tenant. The premises typically include painted hard walls, carpet, a ceiling grid with tiles, lighting, and air conditioning. This condition is also referred to as a ‘warm shell.’
Refurbished Base Building Condition
Describes the state of a commercial space at the time it is handed over to the tenant. The premises typically include painted hard walls, carpet, a ceiling grid with tiles, lighting, and air conditioning. This condition is also referred to as a ‘warm shell.’
Refurbished Base Building Condition
Describes the state of a commercial space at the time it is handed over to the tenant. The premises typically include painted hard walls, carpet, a ceiling grid with tiles, lighting, and air conditioning. This condition is also referred to as a ‘warm shell.’
Fit Out
The physical state and included elements of the interior setup within the leased premises.
Fit Out
The physical state and included elements of the interior setup within the leased premises.
Fit Out
The physical state and included elements of the interior setup within the leased premises.
Condition of Premises
Often interchangeable with the Fit Out clause, this provision specifies the state of the premises at the time of handover or lease commencement, outlining what is provided within the tenancy. Typically, a formal condition report is completed before the tenant takes occupancy to ensure mutual agreement on its condition.
Condition of Premises
Often interchangeable with the Fit Out clause, this provision specifies the state of the premises at the time of handover or lease commencement, outlining what is provided within the tenancy. Typically, a formal condition report is completed before the tenant takes occupancy to ensure mutual agreement on its condition.
Condition of Premises
Often interchangeable with the Fit Out clause, this provision specifies the state of the premises at the time of handover or lease commencement, outlining what is provided within the tenancy. Typically, a formal condition report is completed before the tenant takes occupancy to ensure mutual agreement on its condition.
Permitted Use
Defines how the premises can legally be utilized, based on zoning and regulatory approvals. This clause often specifies usage, such as “Commercial Office,” to clarify that the space cannot be used for retail or residential purposes.
Permitted Use
Defines how the premises can legally be utilized, based on zoning and regulatory approvals. This clause often specifies usage, such as “Commercial Office,” to clarify that the space cannot be used for retail or residential purposes.
Permitted Use
Defines how the premises can legally be utilized, based on zoning and regulatory approvals. This clause often specifies usage, such as “Commercial Office,” to clarify that the space cannot be used for retail or residential purposes.
Gross Lease
The tenant pays a fixed rent, and the landlord covers most or all property expenses, including council rates, building insurance, and maintenance. This simplifies budgeting for tenants since additional costs are already factored into the rent.
Gross Lease
The tenant pays a fixed rent, and the landlord covers most or all property expenses, including council rates, building insurance, and maintenance. This simplifies budgeting for tenants since additional costs are already factored into the rent.
Gross Lease
The tenant pays a fixed rent, and the landlord covers most or all property expenses, including council rates, building insurance, and maintenance. This simplifies budgeting for tenants since additional costs are already factored into the rent.
Net Lease
The tenant pays a base rent while also covering additional expenses such as property outgoings, including land tax, insurance, and maintenance. The specific cost-sharing arrangement varies, with different types such as Single Net, Double Net, and Triple Net (NNN) leases, depending on how much responsibility is passed to the tenant.
Net Lease
The tenant pays a base rent while also covering additional expenses such as property outgoings, including land tax, insurance, and maintenance. The specific cost-sharing arrangement varies, with different types such as Single Net, Double Net, and Triple Net (NNN) leases, depending on how much responsibility is passed to the tenant.
Net Lease
The tenant pays a base rent while also covering additional expenses such as property outgoings, including land tax, insurance, and maintenance. The specific cost-sharing arrangement varies, with different types such as Single Net, Double Net, and Triple Net (NNN) leases, depending on how much responsibility is passed to the tenant.
Vacancy Rate
Refers to the percentage of available office space that is unoccupied and not generating rental income at a given time. It is a key metric used to assess market conditions and demand for office spaces.
Vacancy Rate
Refers to the percentage of available office space that is unoccupied and not generating rental income at a given time. It is a key metric used to assess market conditions and demand for office spaces.
Vacancy Rate
Refers to the percentage of available office space that is unoccupied and not generating rental income at a given time. It is a key metric used to assess market conditions and demand for office spaces.
Occupancy Rate
The percentage of rented space in a commercial property compared to total available space.
Occupancy Rate
The percentage of rented space in a commercial property compared to total available space.
Occupancy Rate
The percentage of rented space in a commercial property compared to total available space.
Direct Lease
A leasing arrangement where a tenant enters into a contract directly with the property owner or landlord, rather than subleasing from an existing tenant. This means the tenant negotiates terms, rent, and conditions directly with the landlord, ensuring full control over the lease agreement.
Direct Lease
A leasing arrangement where a tenant enters into a contract directly with the property owner or landlord, rather than subleasing from an existing tenant. This means the tenant negotiates terms, rent, and conditions directly with the landlord, ensuring full control over the lease agreement.
Direct Lease
A leasing arrangement where a tenant enters into a contract directly with the property owner or landlord, rather than subleasing from an existing tenant. This means the tenant negotiates terms, rent, and conditions directly with the landlord, ensuring full control over the lease agreement.
Sublease
An agreement where the primary tenant rents out space to another party, either partially or entirely.
Sublease
An agreement where the primary tenant rents out space to another party, either partially or entirely.
Sublease
An agreement where the primary tenant rents out space to another party, either partially or entirely.
Security / Bank Guarantee
A financial safeguard required by landlords to protect against tenant default. The amount varies based on landlord preferences and tenant circumstances, but is commonly set at six months’ gross annual rent plus GST.
Security / Bank Guarantee
A financial safeguard required by landlords to protect against tenant default. The amount varies based on landlord preferences and tenant circumstances, but is commonly set at six months’ gross annual rent plus GST.
Security / Bank Guarantee
A financial safeguard required by landlords to protect against tenant default. The amount varies based on landlord preferences and tenant circumstances, but is commonly set at six months’ gross annual rent plus GST.
Insurance
Tenants must maintain specific insurance policies to protect both themselves and the property owner. Standard policies include Public Liability, Plate Glass insurance, and coverage for fit-out costs
Insurance
Tenants must maintain specific insurance policies to protect both themselves and the property owner. Standard policies include Public Liability, Plate Glass insurance, and coverage for fit-out costs
Insurance
Tenants must maintain specific insurance policies to protect both themselves and the property owner. Standard policies include Public Liability, Plate Glass insurance, and coverage for fit-out costs
Lessor Works
Specifies any works the landlord will complete at their own expense before the lease commences. These improvements may apply to the leased premises itself or the broader building.
Lessor Works
Specifies any works the landlord will complete at their own expense before the lease commences. These improvements may apply to the leased premises itself or the broader building.
Lessor Works
Specifies any works the landlord will complete at their own expense before the lease commences. These improvements may apply to the leased premises itself or the broader building.
Lessee Works
Outlines conditions for any tenant-led fit-out modifications permitted during the lease term.
Lessee Works
Outlines conditions for any tenant-led fit-out modifications permitted during the lease term.
Lessee Works
Outlines conditions for any tenant-led fit-out modifications permitted during the lease term.
Make Good
Defines the tenant’s responsibility for restoring the premises or fit-out to an agreed condition upon vacating the property.
Make Good
Defines the tenant’s responsibility for restoring the premises or fit-out to an agreed condition upon vacating the property.
Make Good
Defines the tenant’s responsibility for restoring the premises or fit-out to an agreed condition upon vacating the property.
Tenancy Cleaning
Sets out cleaning requirements for the leased space, including whether tenants must use a designated provider or can seek their own cleaning services, as well as any associated costs.
Tenancy Cleaning
Sets out cleaning requirements for the leased space, including whether tenants must use a designated provider or can seek their own cleaning services, as well as any associated costs.
Tenancy Cleaning
Sets out cleaning requirements for the leased space, including whether tenants must use a designated provider or can seek their own cleaning services, as well as any associated costs.
Common Area Cleaning
Clarifies whether cleaning costs for shared spaces are included in outgoings or treated as a separate expense, along with pricing details.
Common Area Cleaning
Clarifies whether cleaning costs for shared spaces are included in outgoings or treated as a separate expense, along with pricing details.
Common Area Cleaning
Clarifies whether cleaning costs for shared spaces are included in outgoings or treated as a separate expense, along with pricing details.
Utilities and Other Costs
Specifies whether utilities (such as water and electricity) are separately metered for the tenancy, along with any minor additional expenses.
Utilities and Other Costs
Specifies whether utilities (such as water and electricity) are separately metered for the tenancy, along with any minor additional expenses.
Utilities and Other Costs
Specifies whether utilities (such as water and electricity) are separately metered for the tenancy, along with any minor additional expenses.
Subletting
Establishes whether subleasing is permitted, including conditions such as landlord approval, required notice periods, and acceptable sublease rates.
Subletting
Establishes whether subleasing is permitted, including conditions such as landlord approval, required notice periods, and acceptable sublease rates.
Subletting
Establishes whether subleasing is permitted, including conditions such as landlord approval, required notice periods, and acceptable sublease rates.
Holding Deposit
A deposit paid upon signing an Offer document, held in trust by the landlord’s agent or property manager.
Holding Deposit
A deposit paid upon signing an Offer document, held in trust by the landlord’s agent or property manager.
Holding Deposit
A deposit paid upon signing an Offer document, held in trust by the landlord’s agent or property manager.
Legal Documentation
Lease agreements are customarily drafted by the landlord’s solicitor, with each party responsible for their own legal costs.
Legal Documentation
Lease agreements are customarily drafted by the landlord’s solicitor, with each party responsible for their own legal costs.
Legal Documentation
Lease agreements are customarily drafted by the landlord’s solicitor, with each party responsible for their own legal costs.
Building and Service Hours
Defines the building’s standard operating hours, typically from 7am to 6pm.
Building and Service Hours
Defines the building’s standard operating hours, typically from 7am to 6pm.
Building and Service Hours
Defines the building’s standard operating hours, typically from 7am to 6pm.
After-Hours Air Conditioning
Air conditioning is usually provided within standard service hours at no extra cost to tenants. Outside these hours, additional charges apply, with specific pricing outlined in the lease agreement.
After-Hours Air Conditioning
Air conditioning is usually provided within standard service hours at no extra cost to tenants. Outside these hours, additional charges apply, with specific pricing outlined in the lease agreement.
After-Hours Air Conditioning
Air conditioning is usually provided within standard service hours at no extra cost to tenants. Outside these hours, additional charges apply, with specific pricing outlined in the lease agreement.
Anchor Tenant
A major, well-known tenant that attracts customers and other tenants to a commercial property (e.g., , a supermarket in a shopping center).
Anchor Tenant
A major, well-known tenant that attracts customers and other tenants to a commercial property (e.g., , a supermarket in a shopping center).
Anchor Tenant
A major, well-known tenant that attracts customers and other tenants to a commercial property (e.g., , a supermarket in a shopping center).
CAM Charges
Stands for Common Area Maintenance charges, covering expenses for shared spaces such as hallways, parking lots, and lobbies.
CAM Charges
Stands for Common Area Maintenance charges, covering expenses for shared spaces such as hallways, parking lots, and lobbies.
CAM Charges
Stands for Common Area Maintenance charges, covering expenses for shared spaces such as hallways, parking lots, and lobbies.
Cap Rate (Capitalization Rate)
A metric used to evaluate the return on investment of a property, calculated by dividing net operating income (NOI) by property value.
Cap Rate (Capitalization Rate)
A metric used to evaluate the return on investment of a property, calculated by dividing net operating income (NOI) by property value.
Cap Rate (Capitalization Rate)
A metric used to evaluate the return on investment of a property, calculated by dividing net operating income (NOI) by property value.
Class A, B, & C Buildings
A classification system:
Class A – High-quality, modern buildings in prime locations
Class B – Older, well-maintained buildings in decent locations.
Class C - Buildings needing renovation, often in less desirable area
Class A, B, & C Buildings
A classification system:
Class A – High-quality, modern buildings in prime locations
Class B – Older, well-maintained buildings in decent locations.
Class C - Buildings needing renovation, often in less desirable area
Class A, B, & C Buildings
A classification system:
Class A – High-quality, modern buildings in prime locations
Class B – Older, well-maintained buildings in decent locations.
Class C - Buildings needing renovation, often in less desirable area
REIT (Real Estate Investment Trust)
A company that owns or finances income-generating real estate, allowing individuals to invest without direct property ownership.
REIT (Real Estate Investment Trust)
A company that owns or finances income-generating real estate, allowing individuals to invest without direct property ownership.
REIT (Real Estate Investment Trust)
A company that owns or finances income-generating real estate, allowing individuals to invest without direct property ownership.
Zoning
Local government regulations determining the permitted uses of a property (e.g., commercial, residential, industrial).
Zoning
Local government regulations determining the permitted uses of a property (e.g., commercial, residential, industrial).
Zoning
Local government regulations determining the permitted uses of a property (e.g., commercial, residential, industrial).