Commercial · checklist
Before leasing commercial space
An office, shop or clinic lease runs for years and costs far more than the headline rent. Check these before the term sheet becomes a lease.
Is the use allowed?
0 of 3- Permitted useThe approved plan and land use should allow your business; a clinic or restaurant in an office-only building can be refused licences.
- Occupancy certificateThe building should hold one; trade licences and insurers often ask for it.
- Fire NOCA fire safety approval for the building and for your occupancy type, current on the day you move in.
Will it work?
0 of 3- Power loadThe sanctioned load for the unit should cover your equipment; raising it takes time and money.
- Area basisKnow whether rent is on carpet, built-up or super built-up area, and measure the carpet area yourself.
- Signage rightsWhere you may put your name, in writing, and whether the local authority needs to approve it.
What it really costs
0 of 6- CAM chargesAsk how common area maintenance is calculated, how it is revised, and for last year's actual statement.
- Lock-inHow long neither side can exit, and what you owe if you leave early.
- EscalationThe percentage and the cycle; work out the rent in the final year, not only the first.
- GST on rentCommercial rent is a taxable supply; check whether you can claim input tax credit on it.
- Fit-out and restorationRent-free fit-out days at the start, and what you must remove at the end.
- Stamp duty and registrationA lease of more than one year must be registered; budget for duty at your state's rate.
Common questions
Is GST charged on office rent?
Generally yes where the landlord is registered under GST, and in some cases the tenant pays it under reverse charge. A registered business tenant may be able to claim input tax credit; ask your tax adviser.
Does a commercial lease need to be registered?
A lease for more than one year must be registered under section 17 of the Registration Act, 1908.