By having a concise real estate brief and carefully selecting the right properties on a shortlist you can create a competitive environment whereby the best rent can be achieved. Our Colliers International consultants can assist throughout this process.
The amount of space required will vary depending on the nature of the business and the ‘efficiency’ of the space you end up selecting. As a rule of thumb general office uses require roughly between 150ft² and 200ft² of space per employee. Please see our Space Needs Calculator.
Our Clients are in the driver’s seat throughout the entire process. The Colliers International consultant presents appropriate options and save the time and inconvenience of inspecting unsuitable options and dealing with multiple agents, architects and consultants. Our clients still create the shortlist and make the decisions.
If you choose to work with a Colliers International consultant as your preferred agent, the exclusive agreement ensures we receive a fee from the building owner (regardless of who the owner or leasing agent is). We are obligated to negotiate with ALL owners and agents in the market to find the most suitable accommodation for your business.
GROSS RENT is the rent calculated inclusive of all building operating costs. The tenant usually pays the increases in operating costs over a base year.
NET RENT is the rent calculated exclusive of building operating costs. Under a net lease operating costs are still payable but paid by the tenant separately to the net rent. tenant separately to the net rent.
FACE RENT the rent calculated before taking into account incentives or increases. This rent is stated in the lease.
EFFECTIVE RENT is the rent calculated across the full term of the lease after taking into account the effect of an incentive.
Most commercial leases allow the Tenant to sublease or assign their premises. Typically, the landlord may not unreasonably withhold consent to the sublease/assignment. A prudent landlord however will consider the strength of covenant being offered by the incoming tenant and will be reluctant to accept a sublease/ assignment where their financial position and/or security will be reduced as a result of the sublease/assignment.
Tenants are responsible for a proportion of any increases in the total operating expenses relative to the year or the part thereof. The proportion will be calculated in accordance with the Tenant’s pro rata share or percentage of the building as specified in the lease. Operating expenses are defined in the lease and vary from building to building. The base year is the nominated year stated in the lease. Base rent increases are defined in a clause in the lease.
Throughout the term of the lease Base Rent will increase annually by a CPI, percentage, or fixed increases. Depending on the market and building owner. Base Rent may remain at during periods of the lease. A ratchet clause ensures that the rental can be no less than the previous year’s rental. Ratchet clauses are seen in options to renew and are rarely agreed to in oversupply markets. Landlord’s rarely agree to fixed option rents but will agree to a Fair Market Value process along with Base Year changes upon renewals.
During a lease negotiation, leasing proposals are used as a format to determine terms and conditions acceptable to both Landlord and Tenant. This will lead to a ‘Letter of Intent’ document, outlining the final position of both parties. At this stage, both the Tenant and Landlord are not usually legally bound to commit to the premises (unless otherwise stipulated in the documentation to date) however, the Letter of Intent document provides a framework by which the Landlord instructs legal council to prepare formal lease documentation. The signing of the formal lease document legally binds the Tenant to the lease. This is accompanied by the provision of consideration (typically by way of a bank guarantee). The signing of the lease document by the Landlord will typically bind the Landlord to the lease unless otherwise agreed or stipulated.
The rent we quote is called the Base Rent. When we present the proposal and the lease the Base Rent will be explained in a rent schedule. The rent and rental increases are subject to market forces. In this market there are rental increases.
Any term or cost. We are glad to provide you comparable signed leases (comps) and available rates of competitive properties so you can make an educated decision. Keep in mind lease economics include upfront costs, rents, operating costs, and any concessions if applicable.
Concessions are free rent, delayed lease commencement, and tenant improvements. These are subject to market forces.
Leases at this property are full service gross and expenses are applied over a base year. A complete explanation of this type of lease and other leases is available (here).
Yes. This is a full service rent.
Yes. You will have access to the property 24/7. The building HVAC service is limited to building hours. If you need air service after hours the property manager can arrange at a cost if applicable.
The landlord does. If you have an agent representing you we will pay the agent. Leasing commissions are subject to market forces. Sometimes Landlords will offer a bonus. You have a right to know how much the agents are receiving.
We don’t advise it as the leasing fee is how we earn a living.
The landlord will hire the contractors and oversee the construction. The proposed work is agreed up front. If you want to do the construction yourself, you may take an allowance and hire your own contractor, subject to the Landlord’s approval and supervision. Most office leases we negotiate are “turn-key” which means the premises will be move in ready when the manager turns over the key.
Typically the tenant does since connection locations are specific to each tenant’s needs you will hire your own IT Cabling contractor. Some leases require pulling these wires after you leave. Make sure you ask up front.