What is the usual rent formula for commercial property.
Jilly Andre asks:
(updated on Monday, April 28th 2008)
Our Experts Answer:
Empower Education expert Peter Aranyi replies:
Commercial rents are set by the market -- i.e. Landlords/tenants do their own research, ask around from agents etc but often a valuer advises what the market rent for that type of space in that location is likely to be based on comparative rents -- what's being achieved by other landlords.
The rent and terms are a matter of negotiation. So for instance (taking Wellington as an example) a retail space in prime Lambton Quay will rent for $x per sq metre but a similar quality space in Kilbirnie or Newtown will typically rent for a fraction of that -- reflecting the demand of the location and exposure to foot traffic. It's the same with office and industrial -- rent levels are determined by the quality of location and demand for that type of space in that location.
Each sector has specific elements that are important to tenants -- for which they'll pay higher rents.
Heartland Bank - Online | 1.99 |
The Co-operative Bank - First Home Special | 2.09 |
HSBC Special | 2.25 |
ICBC | 2.25 |
HSBC Premier | 2.25 |
Kainga Ora - First Home Buyer Special | 2.25 |
AIA | 2.29 |
TSB Special | 2.29 |
The Co-operative Bank - Owner Occ | 2.29 |
SBS Bank Special | 2.29 |
Westpac Special | 2.29 |
Heartland Bank - Online | 2.35 |
ICBC | 2.35 |
HSBC Premier | 2.35 |
TSB Special | 2.49 |
SBS Bank Special | 2.49 |
The Co-operative Bank - Owner Occ | 2.59 |
BNZ - Classic | 2.59 |
ASB Bank | 2.59 |
AIA | 2.59 |
China Construction Bank Special | 2.65 |
Kiwibank Special | 2.65 |
HSBC Premier | 2.89 |
TSB Special | 2.99 |
AIA | 2.99 |
Westpac Special | 2.99 |
ICBC | 2.99 |
ASB Bank | 2.99 |
China Construction Bank Special | 2.99 |
BNZ - Classic | 2.99 |
SBS Bank Special | 3.19 |
Kiwibank Special | 3.19 |
The Co-operative Bank - Owner Occ | 3.19 |
Heartland Bank - Online | 2.50 |
Resimac | 3.39 |
Kiwibank - Offset | 3.40 |
Kiwibank Special | 3.40 |
Kiwibank | 3.40 |
Bluestone | 3.49 |
Select Home Loans | 3.49 |
ICBC | 3.69 |
The Co-operative Bank - Standard | 4.40 |
The Co-operative Bank - Owner Occ | 4.40 |
Kainga Ora | 4.43 |