Plain terms

Commercial property glossary

The lease and property terms you will meet, in plain language.

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GLA (Gross Lettable Area): The floor space you actually pay rent on, measured in square metres. Includes your usable space plus a share of common areas like lobbies.
Grade P / A / B / C: A quality rating for buildings. Premium (P) and Grade A are modern with top finishes and services; B and C are older or simpler, and usually cheaper.
Gross lease: A rental where the quoted amount includes operating costs like rates and maintenance. You pay one predictable figure.
Net lease: A rental where operating costs are charged separately on top of the base rent. The headline rate looks lower, so always compare the total.
Triple net lease: A net lease where the tenant also carries rates, insurance and maintenance. Common on industrial and single-tenant buildings.
Escalation: The built-in annual rent increase in a lease, usually 7 to 8 percent per year in South Africa. Compounds every year, so check the final-year figure.
Beneficial occupation: A period, often rent-free, where you can access the space early to fit it out before the lease officially starts.
TI (Tenant installation) allowance: Money the landlord contributes toward fitting out your space, usually quoted as rands per square metre and tied to lease length.
Parking ratio: How many parking bays you get per 100 m² leased. Sandton offices typically offer 4 to 5 bays per 100 m².
Rates and taxes: Municipal property charges. In net leases these are billed to the tenant on top of rent.
Operating costs: The running costs of a building: security, cleaning, maintenance, management. Charged per m² monthly on net leases.
FICA: The Financial Intelligence Centre Act. Expect to provide company documents and proof of address before signing a lease or sale.
Transfer duty: A tax paid to SARS when buying property, on a sliding scale. Our transfer cost calculator works it out for you.
Occupational rent: Rent paid when you occupy a property before transfer is registered in a sale.
Sectional title: Ownership of a unit within a larger property scheme, with shared responsibility for common areas via a body corporate.
Zoning: The municipal rules for what a property may be used for: business, industrial, retail and so on. Always confirm the zoning matches your use.
Serviced office: Fully fitted, furnished space with reception, internet and cleaning included, on flexible short terms.
Mandate: The agreement giving a broker the right to market your property. Sole mandates get the most marketing attention.