Most commercial property owners use plans to assist with rent calculations when leasing and to give transparency to the occupier.
A lettable area survey determines occupiable floor space and/or land for leasing purposes. The Property Council of Australia (PCA) has set guidelines for the method of measurement to be used, whether industrial (GLA), retail (GLAR) or commercial (NLA). In basic terms, a GLA is using measurements taken from an exterior wall surface and midline of any shared walls, including areas such as mezzanines.
Some owners use old plans or the wrong plans for the wrong asset type, which when leases are over 5 or 10 years, can result in financial consequences. HOWEVER, CONSIDER THIS! If you measure an industrial building internally you are forgoing the correct method of measurement to the external wall surface (i.e. the thickness of the wall is lost in the calculations and potentially rent). With many new warehouses being tilt panel (i.e. concrete), can you afford to not use the correct plan?
Our AM&A team as part of any onboarding of existing leases always recommend our clients review their current plans and work with experienced surveyors to ensure they are updated with plans fit for the intended purpose.
Want to know more, please contact:
0401 086 202