Real Estate Investor October 2020 October/November 2020 - Page 34


At Crossways Farm Village , you are not getting away from it all . You are getting back to it all .
Back to sustainable living . To the way your great grandparents lived . From farm to hand . Organic . Raw . Pure . Where the soil is cared for and the labour honest . Get back to open spaces . To a community living in balance with nature , where nothing is wasted and resources are renewable . Get your hands dirty . Grow with us .
Get back to it all at Crossways Farm Village - South Africa ’ s first contemporary new rural town .
For more information about the future of sustainability and organic living , please phone Mariaan Coetzee on 083 788 0926 or Marissa Möller on 084 508 3282 .
www . crossways . co . za
FINANCING Take a leap of faith 5 things to consider when leasing commercial property S ince the inception of the pandemic propelled lockdown, people lost their jobs, companies lost their businesses and the country lost its economic stability. Considering the effects of the lockdown, it is only fitting that we take advantage of all possible money-making opportunities that can help us improve our stream of income. This can be done in almost all sectors I.e. the hospitality sector, fashion or retail, art and even in the real estate sector. However, the need to maximize your earnings or income should not alienate you from going big and exploring where necessary. Remember, you spend money in order to get money. If it means moving to a bigger office as a means to expand your business be sure to take the keys and move in, as long as it rewards, it is worth it. But be careful while at it. Leasing office space for your business can be even more daunting now as the country transitions out of lockdown. With remote working now part and parcel of our daily experience, businesses, both large and small are scrutinizing lease agreements and asking the ever-important question “Are we getting value for money?”  Head of Asset Management at Attacq Debbie Theron sheds light on 5 points to ponder before signing on the dotted line.    1 Location, location, location Understanding the strategic value of the neighbourhood and community in which one leases is a critical factor in ensuring that you get value for money. For instance, businesses reliant on client walk-ins require business locations that offer a broad range of lifestyle and entertainment choices. In addition, convenience and secure parking should be non-negotiable. Management should always choose a location which aligns with its own values in terms of providing employees, visitors and staff with the best choices in terms of amenities such as shops, schools, gyms and excellent transport hubs thereby promoting work life balance and convenience.   2 Who pays what in the agreement? Tenants should always ask about common area maintenance. What is common area?  These are typically spaces shared by all tenants in a building or precinct and normally includes services such as security, landscaping, cleaning amongst others. As a tenant, one should clearly understand what the common area services are and also what the tenant’s share of these costs would be once the lease agreement is signed.  These costs are typically called “operating costs” and should be clearly defined to avoid confusion later. Lastly, most agreements hold tenants responsible for the internal maintenance of their exclusively leased premises. Common areas are spaces shared by all tenants in a building including services such as security, landscaping, cleaning amongst   3 Cost of occupancy Cost of occupancy refers to the total monthly cost related to your tenancy.  It would be wise to obtain an estimate from your prospective landlord upfront so that you can budget accordingly and not be surprised at a later stage.  These costs include rental, parking charges, operating costs, all utility charges, levies and your proportionate share of rates and taxes. These costs are usually quoted VAT exclusive. It is also important to establish who your electricity supplier is as the rates charged can differ. 4 5 A vested landlord It is important to have a landlord that is as much committed to the partnership as you are. Have a careful look at the common areas in the building or precinct you are about to move into, establish the landscape and rules of engagement with the landlord upfront and remember that the lease you sign with your landlord is the beginning of a long-term relationship.   When choosing the space for your business, there are a number of factors to consider, but what is paramount is how your business strategy aligns with the location and the landlord. Choose a location that aligns to your business, employees and your other stakeholders’ needs.  Remember you want to do as much as you can to keep a good working environment for your employees, while trying to be survey with money. It is all possible. SOURCE Attacq Decking out your new offices Depending on the salient terms of your lease (rental and lease period are considered) you may be offered a tenant installation allowance. This is an allowance provided by the landlord towards the fitout of your new space and is used towards partitioning, carpets, painting and the like.  Ensure that you understand exactly what is on offer and what it covers, as the various landlords do have different criteria.  The important principle is that this allowance must be used to upgrade the premises you are about to move into and is not an allowance towards furniture and tenant specific installations such as a bespoke server room. Understand how long your fit out will take and plan accordingly.  Turnaround time will depend on the complexity of your design and the size of your premises. 28 OCTOBER/NOVEMBER 2020 SA Real Estate Investor Magazine SA Real Estate Investor Magazine OCTOBER/NOVEMBER 2020 29