The advertised rent is one part of the cost of occupying commercial premises. Before comparing properties, put the rent, outgoings, parking and the costs of making the space usable on the same basis.
Ask for the proposed terms and a written breakdown from the listing agent. What you must pay depends on the actual agreement, so have your lawyer review it before you commit.
Commercial rent may be quoted per year, per week or per square metre. A rate per square metre needs an area and a time basis before it becomes a total. Offices, warehouses, yards and canopies can also be treated differently. Confirm which areas the quotation covers and whether parking is included.
A net rental quotation usually sits alongside additional property outgoings. A gross quotation includes specified costs, but you still need to ask exactly what is covered. GST wording should also be clear. Do not assume two similarly priced properties have the same total cost.
Request the current estimated outgoings, the basis of any shared allocation and how actual costs are reconciled. Depending on the lease, costs may include items such as rates, insurance and shared services. Check exclusions and who is responsible for repairs, maintenance and replacement rather than assuming all building costs belong to one party.
Budget separately for services your business arranges directly, such as electricity, internet and cleaning, where these are not included. Ask whether car parks are separately charged and whether their availability and price are recorded in the proposed agreement.
For illustration, suppose premises have annual rent of $30,000, estimated outgoings of $6,000 and parking of $2,400. Those three items total $38,400 per year before GST, or $3,200 per month before GST on an evenly spread budget.
These are invented example amounts, not Christchurch market rates or a quotation. They exclude utilities, fit-out, moving, professional fees, any deposit or security and future changes. Your actual cash payments may follow a different schedule.
Inspect the existing fit-out and agree what stays. Identify any works required for your use, who pays for them, landlord approvals, necessary consents and when the work can begin. Allow time and cost for communications connections, signage, furniture, equipment and the move.
An incentive or rent-free period may help initially but does not remove later obligations. Compare the whole proposed term, the timing of payments and the cost of returning the premises in the required condition.
Business.govt.nz has further guidance on leasing or buying business premises. Your lawyer should explain the obligations in your particular documents.
Use our premises guide to develop a brief, then browse commercial property for lease. Ask the named agent for the rent basis, outgoings, parking and available property information. Owners seeking a tenant can request a lease appraisal.