Fair *common area* service charges in commercial property?

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  • Fair *common area* service charges in commercial property?
  • Premier Icon Stoner
    Subscriber

    £0.30p psf is cheap.

    You’re paying for common lighting, heating, wear&tear, maintenance, cleaning and insurance.

    Sq/ft proportional allocation is common practice.

    iolo
    Member

    That’s cheap. Just check the contract that it doesn’t get raised on a regular basis.

    wrecker
    Member

    Ohh, and the common areas are the (small) car park, shower room and corridors only (our suite has it’s own kitchen for which we are responsible)

    And the M&E services, and the building fabric, security, landscaping, cleaning etc etc.

    johndoh
    Member

    Looking at moving office to a place that has been fitted out with brand new interiors throughout. In the past every office we have had included common areas service charge, this one is charging a % based on the space we are leasing – based at £3 per sq. M – it seems a bit steep (around £2.5k a year) for spaces that should require little maintenance as they are all brand new.

    Ohh, and the common areas are the (small) car park, shower room and corridors only (our suite has it’s own kitchen for which we are responsible)

    Any thoughts?

    Ta

    johndoh
    Member

    Sorry, I meant £3 per sq. ft! Doh springs to mind.

    konabunny
    Member

    That’s cheap. Just check the contract that it doesn’t get raised on a regular basis.

    IMVHE, those charges are the actual costs on a pass-through basis. The landlord doesn’t mark them up, and the costs are split proportionally among the tenants. If the cost of maintenance goes up, the tenant pays more; if the cost goes down, the tenant pays less. Either way the landlord doesn’t gain or lose anything.

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