Is it Under Retail Leases Act

Commercial Leases

Valuations for Tenants

Applies to all retail shop leases (exemptions apply).  ‘Retail shop’ refers to sites used wholly or predominantly for the carrying on of a business listed in Schedule 1 of the Act. This can include bookshops, restaurants and general stores. A retail shop also includes any business located in a shopping centre. Shopping centre is defined as set of 5 or more shops together.

Commercial leases apply to all the commercial properties that the landlord lease out that does not fall in to retail leases act. Unlike special provisions in the retail leases act, commercial leases are bound by the commercial lease that the parties entered in to.  These leases do not have the benefit of the small business commissioner and mostly dealt by the contract law through the court system.

Our valuation process considers all the relevant factors affecting the rental. A rental valuation is essential to ensure that current market rental of the property is outline in the valuation report. An expert specialist rental valuer from our office will contact you and conduct the valuation and provide the rental valuation report.

Getting a true indication and independent rental value for the property you are renting can be difficult. Getting an accurate rental valuation can help you make better informed long-term decisions. Getting an expert specialist rental valuer is essential as many factors affect the base rent including fit outs and out goings and etc.

Child Care Centre Leases

Electronic Shop Leases

Hotel, Pub, Tavern and Motel Rental Valuations

Hospital and Medical Centre Rental Valuations

A lease for a child care centre is usually a long term commercial property lease between a landlord and tenant. It is important to the valuer to familiarise with the many steps involved in leasing a child care centre. Regular turnover, life of lease, barriers to entry, outgoings, fitout, review basis, location, market conditions, facilities, proximity to additional services, yields, scarcity of places, investor interests, and the composition of the market are some of the many factors.

Electronic resellers are a very popular form of retailing due to the Australians who love to be tech savvy and want to have the latest technology. Valuer need to be aware that some of these leases has a turnover component and there are statutory guidelines to ensure what sales are legitimate turnover of the actual shop. There are online sales by these shops and there are guidelines what need to be excluded from the turnover rent. There are customers who visit the shop and then go online to purchase and then there are customers who order online and then come to the shop to collect the goods. Then there are also customers who order online and get the goods delivered. All these factors need to be considered in working out the turnover rental if it is part of the lease.

Hotel rentals need to be assessed as per the various factors that affects. Valuer need to be careful to ascertain the value based on the attributes attached to the property. Various attributes affect the property include the geographic location, proximity to services, availability of facilities, capability of the actual construction, conditions enforced on the land from town planning, potential of the subject land and the improvements. There are specific guidelines that need to be followed by a rental valuer who undertake to value the rental of hotel.

Hospital and medical Centre rental valuations are a different beast itself. These rentals need to be valued based on the rentals of similar properties. Consulting suites in a well known hospital are different to a shop strip consulting suites and residential consulting suites. Analogy can be made to retail shops that are in well known shopping centres, neighbourhood strip retail outlets and corner shops. Just like a retail shop in a well known shopping centre that relies on foot traffic of the centre, the consulting suites in a hospital relies on the patient traffic of the hospital. Valuer need to take all these factors in determining the rental of the property.