Standard Leasing Practice - Office Market

It is standard practice to base rentals on the "Rentable Area" which includes a pro rata share of common areas (e.g. toilets, tea kitchen, foyers etc). Landlords generally request a 5 year lease but may accept
a minimum of 3 years.

There is always an Escalation Rate on the Rental and Parking Bays that varies between 8 % - 12 % annually.

Subject to the financial strength of the Tenant and the length of the lease, Landlords will normally contribute to the fit-out the premises with new carpets and partitions to suit the tenant's requirements.
Air-conditioning is also normally provided.

If the premises are empty, allow at least one month for alterations - from the date of signature.

Lease deposits were traditionally the equivalent of 1 months rental but the trend is for this to be either 2 or 3 months - with a new or non-resident company sometimes requiring more.

In general, office lease rentals exclude the following:

VAT - All rentals exclude Vat - but this is recoverable (assuming you are registered for Vat).

Parking - Parking rental depends on the number of bays available and whether they are undercover or open. Parking rates are normally quoted per bay but as these can vary greatly, a good rule of thumb is that parking can add between R10 and R25m2. Tenants pay for all parking bays, including visitors' bays.

Consumption Items - this includes items such as:

• Electricity used within the premises
• Refuse collection
• Servicing of air-conditioners
• Internal cleaning
• Cleaning of windows
• etc

Some Landlords Also Require A Pro Rata Recovery Of:

Security costs	Landscaping
Cleaning	Sanitary costs