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Retail Rent Formula:
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Retail space rent calculation determines the cost of leasing commercial retail space in Australia. It's based on the gross leasable area (GLA) multiplied by the rental rate per square meter, providing a standard method for commercial leasing agreements.
The calculator uses the retail rent formula:
Where:
Explanation: This straightforward calculation multiplies the total leasable area by the agreed rental rate to determine the total rent amount.
Details: Accurate rent calculation is essential for both landlords and tenants to establish fair leasing agreements, budget effectively, and ensure commercial viability of retail spaces in the Australian market.
Tips: Enter the gross leasable area in square meters and the rental rate in Australian dollars per square meter. Both values must be positive numbers.
Q1: What is included in gross leasable area?
A: GLA typically includes the total floor area designed for tenant occupancy and exclusive use, including storage areas, but excluding common areas like hallways and restrooms.
Q2: Are there additional costs beyond base rent?
A: Yes, retail leases often include outgoings such as council rates, water charges, insurance, and maintenance costs, which are typically calculated separately.
Q3: How often are rental rates reviewed?
A: In Australia, retail leases commonly have rent reviews annually, often tied to CPI increases or market reviews, as regulated by state-based retail leasing legislation.
Q4: Do rental rates vary by location in Australia?
A: Yes, rental rates can vary significantly based on location, with prime retail locations in major cities commanding higher rates than regional areas.
Q5: Is this calculator suitable for all retail leasing situations?
A: This calculator provides a basic estimate. Complex lease agreements with percentage rent clauses, fitout contributions, or other special conditions require professional advice.