Commercial Property Investment Australia: THE BASICS (Part #2)

Part #2 on Commercial Property Investment terms in Australia, making complicated ideas simple for beginner investors. You'll get an understanding of various key terms in commercial real estate so that you can start considering if commercial property investment suits your portfolio.

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Remaining Term - Outlines the time left between the settlement date of a commercial property and the expiry of the initial lease term.

Fixed vs CPI vs Market Review vs Other Review - as part of a commercial lease, there will be different ways to review the rent.

Make Good comes in to play at the end of a lease when a tenant may be vacating.

Variation vs Extension vs Side Deed change the commercial property's lease agreement in different ways.

Ratchet Clause could be an extra bonus ... OR BAD for a commercial property investor.

An option can be used when buying a commercial property or used to describe the tenants right to a further term.

Incentives are commonly used when leasing a vacant commercial property. It's expressed as a percentage of the net rent over the initial term of the lease. There is a range of ways to negotiate incentives including a rent-free-period, cash payment or contribution towards the tenant's fit-out.

Make Good is a standard clause in most commercial leases to ensure the building is left in good condition when the tenant vacates. However, it too can be a handle tool in negotiation to encourage tenants to exercise options or additional revenue.

Redevelopment clauses are important when the commercial property's development potential far exceeds the income from the improvements. It gives the landlords a right to terminate the lease in the case of redevelopment.

Face Rent vs Effective Rent - face rent is the net rent of a commercial property. Effective rent is when incentives are taken into account an amortised and discounted from the face rent.

Видео Commercial Property Investment Australia: THE BASICS (Part #2) канала Kent Cliffe