Frequently asked questions
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| Commercial leasing | Retail leasing | Residential leasing | Commercial sales |
What length of lease do I have to take for a commercial office?
A commercial lease is typically two to three years with options to extend. Terms of five to as much as ten years plus options are possible.
What is the shortest lease I can take for a commercial office?
In some cases it is possible to take a lease of a only one year. This is usually only with small office spaces of less than 100sqm. If you are looking for flexibility in a lease then a serviced office may be a suitable alternative. Serviced office space is licensed on a month by month basis.
What is a serviced office?
Serviced offices are flexible office spaces offered on monthly licenses, usually with shared facilities like breakout areas and meeting rooms. Offices are fully furnished, and only require you to bring your computer to begin trading.
There is also typically a central reception where a range of business support services are offered. For example, phone calls can be answered in your company name, giving you the appearance you have your own receptionist.
Phone lines, handsets, internet access, answering services, meeting rooms, word processing, printing, couriers, and anything else you can think of is available on a pay per use basis.
How much bond do I need to pay?
Typically a commercial lease requires a bond of two to three months gross rent plus GST, but this can be as much as six months rent for large offices, lease deals with large incentives, or tenants perceived to be higher risk. A serviced office bond is usually only one or two months rent at most.
Is a lease incentive the same as rent free and how much of an incentive can I expect?
Lease incentives are often offered by a landlord as rent free to encourage a tenant to lease a space and assist their fitout costs when starting out. A landlord may also pay for the tenants fitout by way of an incentive.
Incentives are highly market driven, but a guide in a fairly balanced market for an open plan office would be 8% to 12% of the annual rent over the term of the lease. A fitted out office will usually attract less of an incentive as it is ready to go and there are minimal tenant set up costs to offset.
What length of lease do I have to take for a retail shop?
The Retail Leases Act provides for a minimum lease term including any options of five years. This can be varied by mutual agreement only. Maximum lease terms can be as much as 30 years including options.
What is a Disclosure Statement?
A Disclosure Statement is essentially a summary of the key terms agreed between parties to a retail lease agreement. It is required to be provided within seven days of commencing negotiations. The form of the Disclosure Statement is proscribed by legislation. A sample can be found here.
How much notice do I need to give?
If you intend to vacate at the end of your tenancy agreement you are required to give 14 days written notice before your agreement expires. Once the fixed term of your tenancy agreement has expired you must give us at least 21 days written notice.
Notice can only be given in writing signed by all people noted on the lease. Notices can be faxed to 1300 325 329 or posted to P.O. Box 490, Lane Cove NSW 1595. An email cannot be accepted as signatures are required.
What do I need to do if I need to vacate before the lease ends?
If you need to break your lease you must give us notice in writing of the day you intend to vacate. We will then source a tenant to replace you. Any new tenant must submit a tenancy application and be approved by the landlord.
You will be required to pay the following costs -
- All advertising costs. This includes a $77 internet upload fee, $22 per week for priority internet placements, and approximately $80 per week for print advertising.
- All rent until a new tenant is found and begins paying rent.
- Any difference between the new rent and your old rent until the time your lease ends.
- A letting fee of 2.2% of the annualised weekly rent - approximately one weeks rent + GST.
- A lease preparation fee of $31.50.
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