Rent is only part of the deal. Fit-out periods, common area maintenance, escalation, the security deposit and who pays for what during a handover cause far more disputes than the headline rent does.
If you own a retail or food court unit and want it let, or you run a business looking for space, the negotiation is rarely about rent alone. These are the terms that decide whether the deal works.
The commercial terms
- Rent and escalation. Agree the starting rent, the escalation percentage and how often it applies.
- Security deposit. Usually expressed as a number of months of rent. Agree when and how it is refunded.
- Maintenance. Common area maintenance is normally charged on area and is separate from rent. Ask for the current rate in writing.
- Lock-in and notice. Both sides usually want a lock-in. Make the notice period symmetrical if you can.
The practical terms
For food and beverage units in particular, confirm the power load allotted to the unit, whether a kitchen exhaust route exists, water and drainage provision, and the position of the grease trap. Retrofitting any of these later is expensive and sometimes not permitted.
The fit-out period
A tenant needs time to build out the unit before trading. Agree how many rent-free days that is, what the landlord hands over (bare shell, warm shell or fitted), and who pays maintenance during fit-out.
Before signing
Check that the unit's use is permitted under the project's approvals, that the owner's title and the maintenance dues are clear, and that the registration and stamp duty on the lease deed are budgeted for. We can arrange the viewings and sit through this part with you.
