There is a lot happening in the central city. Whether you work in town or are just visiting on an evening or a weekend, there are plenty of good spots for shopping, entertainment or dining out; The Crossing, Hoyts EntX and The Terrace to name a few.

There is still more to come, with the Convention Centre – Te Pae, plenty of new office buildings, and retail and hospitality space being constructed.

For any person looking to establish a business in the central city, the issue of a lease for your chosen premises will need to be addressed. There are various commercial considerations for you when entering a lease. I will provide you with three examples:

Firstly, you will want to understand the occupancy cost under the lease. This will include the rent and any additional expenses you are required to pay to the landlord (these are usually referred to as opex or outgoings and would include the landlord’s rates and insurance premiums). Also, rent reviews are usually provided for the term of a lease and any review will affect your occupancy cost moving forward. Different rent review mechanisms can be used, including market rent reviews, reviews to movements in CPI and fixed increases.

To eliminate the risk of future surprises, it is useful to plan and consider what could happen to your occupancy cost following a rent review.

Secondly, the term of the lease is important. What fixed term are you going to commit to, and will you have the right to extend the lease for a further term if you want to continue your occupation of the premises?

Thirdly, you should be talking to the landlord about whether there is an incentive for entering into the lease. An incentive can take on many forms and can assist with establishing yourself in your new premises; the most common options being a rent-free period, a discounted rent period or a contribution from the landlord to your fit-out costs.

These three key tips should put you in good stead for taking on a lease. A lease sets out the terms of your occupation for the years to come – it is important to take the time and understand the terms of the lease from the start.