Clinic rents are usually advertised as a dollar-per-square-metre figure. This can be advertised per annum or per month and is typically exclusive of GST. For example, say a 50sqm Physiotherapy shop-front style practice is advertised at $65 per square metre per month. The annual cost to rent excluding GST would be: $65 x 50 x 12 = $39,000. GST can be calculated by adding 10% to the rental figure. Therefore, the annual rent inclusive of GST would be: $39,000 x (1.1) = $42,900.
Gross rents are an all-inclusive figure that include all building outgoings. Under a net lease, outgoings are separated from the outset and clearly outlined as an additional cost to the tenant. Sometimes only a percentage of total outgoings is applicable, particularly if the clinic space is part of a shopping centre or commercial precinct. The shared outgoings are calculated based on your space as a percentage of the total space.
Outgoings, which are passed onto a tenant, generally include:
• Council Rates
• Water Rates
• Building Insurance
• Repairs, Maintenance & Cleaning Costs (excluding capital costs but includes things like scheduled air conditioner servicing)
• Management Fees (including Body Corporate & Strata Levies)
• Land Tax (this varies, some landlords charge this, some don’t)
Incentives are ty