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Common Leasing Terms

GLA – Gross lettable area - Based on the origional SAPOA measurement method this is the area measured between the centreline of party walls and the predominant internal face of external walls. It includes mezzanine levels and excludes voids or ducts in the building.

Nett Rental - Base rental excluding Operating cost and rates.

Operating Costs – An amount recovered by the landlord from the tenant for the running costs of the property (security, rates, insurance, maintenance etc)

Escalation – Annual percentage increase in rental and operating costs which represents the expected market growth in the investment by the Landlord and takes into account increases in property related costs and CPI. The Landlord would typically try to acheive real growth over and above a simple CPI increment.

TI Allowance - Tenant installation allowance used mostly in office buildings where an amount if offered by the Landlord to construct and finish the interior office space. This would normally be limited to expenditure on partitions, floor covering, painting or wall paper, light fittings etc.

Premises - The area being let out as described in the lease.

Common area - an area within a building the use of which is shared on a non exclusive or undevided basis by all tenants.