• Retail
  • Office
  • Log In
https://smg.cbre.com/images/default-source/default-album/header-image.jpg?sfvrsn=0

Overview

What's Typical

Breaks

Rare, except with long-term leases (e.g. 10 years).

Escalation

Annual rental escalation.

Fit-out

Landlord normally contributes.

Free rent

Not usual. However, in certain instances 1 month may be negotiated or in lieu of tenant installation allowance contribution.

Legal fees

Tenant pays landlord's lawyer to draw up the agreement.

Renewals

Negotiable.

Rent basis

Gross or net + operating costs.

Right to sublet

Normally allowed with landlord's consent.

Security

2–3 months' rent of the last year of the lease. Depends on tenant's credit rating, risk profile and payment history.

Tenant's broker

Landlord and tenant each pay their own brokerage fees.

Transparency

Market data is available, but there is limited transparency of individual deals. Increasing trend of transparency between negotiating parties only.

Term

3–5 years.

Offices

Bloemfontein +27 51 430 3008

Cape Town +27 21 419 7373

Durban +27 31 362 1700

Johannesburg +27 11 441 4000

Limpopo +27 15 291 4722

Nelspruit +27 13 752 6671

Port Elizabeth +27 41 363 5559

Pretoria +27 12 470 8660