Net rent

[Deltaberry]

Oh ok I'm speaking exclusively about CBD properties I guess, so in the $100k+ range. Maybe the demand factor drives that to be the case

 

[Trogdor]

Even at the smaller end in the area we have our CIPs leases are rent + outgoings + GST.

Where outgoings will include items such as rates, water, (if applicable) body corp, etc..

In this market a rent + GST lease would be unusual.

 

[John M]

Each area is different, Trogdor. Certain areas I work in are dominated by gross leases (70-80% are gross) as this has been established as the norm over a long period of time.

Net leases are certainly better for the owner though.

 

[JIT]

This is not always the norm (it would be great for owners if it was!). The smaller tenants usually want gross rentals as they don't want the uncertainty provided by net rents. They just want to know they need to pay $X amount per week.

The larger tenants often don't mind net rents and it won't bother them if rates go up $5k/yr.

It will also depend on the area in which the property is situated.

Thanks Jonno, useful info.