Glossary
Net Lease
A lease where the tenant pays rent plus outgoings (rates, insurance, maintenance) separately from the base rent figure. The most common commercial lease structure in our region.
Gross Lease
A lease where outgoings are already included in the single rental figure quoted.
Outgoings
The property-related costs (council rates, water, insurance, common area maintenance) a tenant pays on top of base rent under a net lease.
NLA (Net Lettable Area)
The usable internal floor area of a property, excluding internal walls and structural elements. The standard measurement used for most commercial leasing.
GFA (Gross Floor Area)
The total floor area of a building including internal walls, sometimes used for larger or industrial properties.
GST
Goods and Services Tax (10% in Australia). Commercial property rent and sale prices are typically quoted exclusive of GST, which is added separately.
WALE (Weighted Average Lease Expiry)
A measure used primarily for investment properties, indicating the average remaining lease term across all tenancies, weighted by rental income. A longer WALE generally indicates more secure income for an investor.
Cap Rate (Capitalisation Rate)
The ratio of a property's net annual income to its purchase price, expressed as a percentage. Used by investors to compare the relative value and yield of investment properties.
Zoning
The land use classification assigned to a property under the relevant council planning scheme (e.g. Commercial Business, Industrial, Local Centre), which determines what uses are permitted.
Development Application (DA)
A formal application to council seeking approval for a change of use, building works, or development on a property.
Option (Lease Option)
A right, held by the tenant, to renew the lease for a further term at the end of the current one, usually on pre-agreed terms.
Tenure Type
Describes how a property is held or offered — for example, "Owner Occupied," "Tenanted Investment," or "Vacant Possession."
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