When it comes to commercial property leasing, understanding the intricacies of rentable areas is crucial for both landlords and tenants. The value and rental income are determined based on the size of the property and it’s rentable area, so accuracy is important. Whether you're a property owner, a potential tenant, or simply curious about this field, read on to discover the significance of rentable areas and the role they play in commercial real estate.
Rentable areas encompass the space available for lease within a commercial property. They consist of both usable areas (tenant-occupied spaces) and a proportionate share of common areas, such as lobbies, corridors, and restrooms. These measurements form the foundation for lease agreements, utility cost allocations, and tenant responsibilities. Due to the accuracy required - a rentable area survey is best conducted by a Licensed Cadastral Surveyor.
The Property Council New Zealand has established standardised measurement practices to ensure consistency and transparency across the industry. Their guide, "The Guide for the Measurement of Rentable Areas," serves as a valuable resource for property professionals and stakeholders. By adhering to these measurement standards, property owners and managers can provide accurate and fair representations of rentable areas, fostering trust and confidence among potential tenants.
It is essential to differentiate between usable areas and gross areas within a commercial property. Usable areas refer to the spaces exclusively occupied by tenants, while gross areas encompass both usable areas and a proportional share of common areas. Understanding this distinction helps tenants accurately evaluate their space requirements and provides a basis for rental calculations, lease negotiations, and valuations.
Clear presentation of measured rentable areas is crucial for effective communication between landlords and tenants. Floor plans and diagrams are often utilised to visually represent the different areas and aid in understanding, and again it is a Licensed Cadastral Surveyor who is best placed to prepare these for you. These visual representations offer a transparent depiction of the space, helping tenants assess their needs and landlords market their properties effectively.
Accurate measurement of rentable areas plays a vital role in the commercial property market. By understanding the principles outlined in the Property Council New Zealand's guide, landlords, tenants, and industry professionals can ensure fair and transparent lease agreements. Whether you're a property owner seeking to attract tenants or a potential tenant evaluating available spaces, knowledge of rentable areas empowers you to make informed decisions. Give us a call to discuss any support you need in this space.
