All about Leasing                                                                                                                                                                  

Rent & Outgoings Package The Retail Tenancy Acts in most States require first tenants to be given leases of a minimum of 5 years duration. In addition, try to obtain from the Landlord a further option period of at least another 5 years. Some Landlords particularly in the major centres are reluctant to grant such an op.. MORE

Upsizing of Premises More and more tenants, like pharmacists for example, in an attempt to compete with Power stores are up-sizing their premises. This is often is done by either taking over the store next door when the lease on that store expires or by building onto the existing premises. This action to up-size may.. MORE

Initiating Early Lease Negotiations If you are contemplating a sale of the store and you have only 2 years to go with no further option, it is imperative that you initiate negotiations with your landlord for a new lease as soon as possible. The longer you leave it the more difficult it will be to achieve the desired outcome. In the cu.. MORE

Owning the Building You Do Business In The rent that you pay is what determines the value of the property to a landlord. This rent is then capitalised by a valuer at a percentage that is the yield an investor would be looking to receive from that property. This yields ranges from 5% for a large shopping centre to 12% for smaller pro.. MORE

Outgoings Control & Management WHAT SHOULD YOU GENERALLY BE AWARE OF WHEN DEALING WITH THE OUTGOINGS RENTAL CHARGE? At least one month before the commencement of the financial year landlords are obliged under the Acts to provide the tenant with the budgeted outgoings for the centre and a calculation of how the tenant’s.. MORE

Outgoings Here are some tips that can assist you: When the landlord gives quotes on an outgoings rate per square foot or per square metre, ensure that you know exactly which outgoings the rate covers. In shopping centres some outgoings include municipal, council and water rates as well as a land tax cha.. MORE

Useful Tips When Negotiating a Lease The best type of rent package that can be negotiated is a gross rent deal ( ie. one that includes a total occupancy figure covering both Rent and Outgoings) and which is usually expressed as a percentage of Sales. The next best rent package to be considered is one where you pay a negotiated ne.. MORE

Occupancy Cost Ratio for Retailers The Occupancy Cost Ratio measures the occupancy cost of the business. It determines the amount of rent a business can afford to pay. A rule of thumb is that the percentage should be no greater than 30% of the gross profit of the business, that is a business with a gross profit to sales of 40% ca.. MORE

Assignment of Lease & Right to Compensation Assignment and Subleasing Know your rights A tenant has a right in terms of the Act to assign the lease subject to the tenant providing full particulars of the proposed assignment and asked the lessor in writing to consent to it. A tenancy dispute may exist if : The lessor .. MORE

Land Tax ... Retail Specific As Lease Administrators check the budgeted outgoings for 2010 against the budgeted outgoings for 2009, one major increase in outgoings expenses stands out above all others; namely, the massive increases in land tax in shopping centres recoverable from tenants - particularly in shopping centres loca.. MORE

Leasing Tips for Retailers For those retailers who are about to renegotiate their leases, the following leasing tips will I hope ensure that you secure a lease that sees you through the recession and will stand you in good stead for the next 5 years: If your lease expires in 2009 ask for the first two years of the new .. MORE