Leasing Terminology & Common Terms

Air-conditioning: 

Most of the office buildings with central air-con system, operates during office hours.

Weekdays: 8am to 6pm

Weekends: 8am to 1pm

After office hours usage of air-con can be arranged by giving the advance notice. The estimated cost would be $40 to $80 per hour. Tenant also can install the split air con or tape into chilled water depend on the building system. This is subject to management approval.


Car-Park:

Tenant season car park allocated base on the total floor leased. The ratio normally is 1 lot per 2000 sf. Cost average will be $200 to $400 depend on the building or location.  Additional lot is subject to availability and on monthly or quarterly basis.


Lease Term:

Office lease term normally 3 years but 2 years possible be accepted. > 3 years now difficult to negotiate because most landlord not  keen in this rising market. We still can see some bigger tenant manage to sign up to 5 years lease due to bigger spaces.


Legal Fees / Admin Fees:

This is the fees to prepare the documentation and required to pay by tenant. The fees varies from landlord to landlord.


Option To Renew:

Standard lease renewal is 1 to 3 years but subject to rate mutual agree.


Reinstatement:

All tenant required to return the unit in bare and original condition at the end of the lease. This normally take 2 to 3 weeks so tenant must start to plan before last month of the lease.


Rent Free Period:

This is given to the tenant for renovation purpose on the premises. The duration is depend on the size of premises and normally 1 month, 2 to 3 months is possible for the bigger spaces. This will normally given outside of the lease term


Service Charge:

This charge averagely between $0.80 to $1.20 psf and include in gross rental. The exact figure will be specified in the lease but can change during the lease term. Service charge covers the maintenance  common area and air conditioning of the offices during normal office hours.


Stamp Duty:

Tenant is responsible on the stamp duty fees payable for the lease documentation.


Utilities:

Tenant required to open it own electrical account and responsible for the connection charges if needed. If the property building is not a central air con system, tenant have to pay the air con usage charge.

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