Office Space (507)
0861 6222 62Commercial Property
Ash Brook Commercial Properties has the widest range of Commercial Property available on the web. Call 0861 6222 62, search online or complete the contact form to get an agent to contact you. At Ash Brook we have a highly skilled, professional team, which has successfully concluded deals with a number of multi-national companies. We focus exclusively on commercial property, to provide our clients with a highly specialized service.
List of Top 10 Things to Know
No. 1 - What is considered Commercial Property?
Commercial Property is defined by the Estate Agency Affairs Board as “A property used for business or office purposes, not for residential purposes.” This means that office space, warehouse / factory space and retail space are all considered commercial property.
No. 2 - What is your budget? Consider the following:
- Gross monthly rental per msq (to see our downloadable PDF documents with average gross rentals throughout Gauteng go to our Commercial Property Pricing Guide 2010)
- Deposit requirement: usually 3 months deposit without personal surety
- Annual compounded escalation: usually 10% for a 3 year lease and 8% for a 5 year lease
- Tenant Installation (TI) allowance: This is more relevant to office premises, and is usually calculated as follows – 1 month’s gross rental for each year of the lease i.e. 3 months gross rental on a 3 year lease. Please note here that if the tenant requires an extensive client specific fit-out of their premises, then they would have to pay for any amount over the TI amount
No. 3 - Where do you want to locate your business
premises?
You need to consider factors such:
- Where do your employees live?
- Do your employees sit permanently within the business premises or are they mobile (e.g. sales staff)
- Where are your customers located
- Do you have many customers travelling to your business premises i.e. are you client facing
- Access to the main arterials
- Do you require high visibility to a main road for Branding purposes
- Prestige of the area
No. 4 - Are there any technical requirements for your commercial property?
- Back-up generator
- Separate server room
- Separate alarm system
- Specific air-conditioning requirement
- Number of roller shutter doors
- Height to eaves
- Specific water / electricity requirement
- Specific security requirement
- Signage and branding requirement
- Layout and design of store
- Water / electricity requirement
No. 5 - When do you want to occupy the new commercial property?
Its advisable to start looking for new premises between 3 - 6 months before your existing lease expires.
No. 6 - When does your existing lease expire – do you have an option to extend your lease?
This all depends on your lease agreement. You generally have an option to renew, but this should be discussed with your existing landlord around 2 months prior to your lease expiring. Some landlords will only consider renewing a lease on new lease terms, which often means reverting to market related rates for the premises.
No. 7 - How long do you intend to lease your new premises?
The current standard amongst the Top 3 property funds in South Africa is either a 3 or 5 year lease term
No. 8 - How much space will you need within your commercial property?
Here you need to consider your expansion strategy over the next 3 or 5 years, depending on the preferred lease term. We have specialist space planners who work on risk in order to calculate exactly what size your company requires.
No. 9 - What Grade of building do you need to occupy?
- 'A' Grade – Generally not older than 10 years old, unless renovated; prime location; high quality finishes; adequate on-site parking; air-conditioning. Commands the highest gross market rental
- 'B' Grade – Generally 10 to 20 years old, unless renovated; accommodation to modern standards; prime location; air-conditioning; on-site parking. Commands a middle of the range gross market rental
- 'C' Grade – Generally 20 to 30 years old, unless renovated; in fairly good condition, although finishes are not up to modern standards; good location; may have on-site parking; unlikely to be centrally air-conditioned; commands the lowest gross market rental
No. 10 - Do you want to be within a business park or not?
There are a number of potential factors in this decision:
- Generally speaking, tenants tend towards a business park environment, as this provides additional security.
- Tenants often prefer to be amongst other business owners, rather than in a stand-alone building.
- Being within a business park generally reduces operating expenses, as they are shared amongst the tenants of the park.
How can Ash Brook help you find the right commercial property?
At Ash Brook we guarantee the most comprehensive, searchable database of commercial properties in South Africa. If you do not find what you are looking for on our website, please contact one of our brokers on 0861 6222 62 or complete a contact form and an agent will call you.
