High-quality modern finishes throughout the building with air conditioning as a standard feature. Professionally managed with above-average ongoing maintenance. Adequate parking for tenants and visitors and good access to major roads and transport routes.

Tenant or common-area bathroom facilities within a building. In industrial property, ablutions are often inside the warehouse or in a dedicated block

Sound-control characteristics of a building or office space. Important for call centres, boardrooms, and open-plan layouts.

Sound-control characteristics of a building or office space. Important for call centres, boardrooms, and open-plan layouts.

A legally binding addition or amendment to an existing lease or sale agreement.

A fee charged by landlords or managing agents for processing lease documentation, utilities, or account setup.

Facilities that enhance tenant experience – canteens, gyms, backup power, fibre, showers, outdoor areas, boardrooms.

A major tenant (often referred to in retail centres) that drives foot traffic and stabilises the building’s income profile.

Annual rental = Monthly base rental x 12, subject to the lease’s escalation clause. Most commercial leases in South Africa include annual rent escalations, typically 7%-10% per year.

Final architectural drawings showing the building exactly as constructed. Used for GLA verification, compliance, and refurbishments. Important for bond application and during the transfer process.

Strategic oversight of a property or portfolio to maximise value, income, and long-term performance.

A central open space within a building, often with natural light, used in modern A-grade and P-grade offices.

The date on which the premises are ready for tenant occupation – often tied to practical completion or tenant installation.

An older but decent office building with functional finishes. Not modern enough for A-grade, but still good value.

Alternative power supply used during load-shedding or outages. A major value driver for offices and retail.

On-site water storage (tanks, boreholes, filtration) to ensure continuity during municipal supply interruptions – increasingly important in SA metros.

The core rental amount per square metre before operating costs, parking, VAT, or incentives. Used to compare buildings.

A period where the tenant may occupy the premises before lease commencement, often rent-free, to complete fit-out.

The date the tenant is allowed early access for installation or setup. Not the same as the lease start date.

The legal entity managing a sectional title scheme. Responsible for levies, maintenance, and common property.

A private water source on the property. Adds resilience and reduces municipal dependency.

A clause allowing either party (usually the tenant) to terminate the lease early under specific conditions.

The fee paid to a property broker for securing a tenant or buyer. Typically 5% of the first and second year’s gross rental; 2.5% of year 3,4,5 for leases, and 3%-7% for sales.

A digital system controlling HVAC, lighting, access, and energy efficiency in modern buildings.

The maximum floor area permitted on a site, based on zoning and FAR (Floor Area Ratio). Critical for developers.

Municipal infrastructure required for development – water, sewer, electricity, stormwater. Developers often pay bulk contributions.

An older building with basic finishes and limited modern features. Lower rentals, often used for back-office or budget tenants.

The yield used to value income-producing property. Formula: Net Operating Income / Property Value. Lower cap rate = higher value.

Issued by the municipality confirming the building is safe and compliant for occupation. Required before tenants can legally occupy.

Transfer of rights from one party to another – often used in ceding lease rights, insurance proceeds, or rental income to a bank.

A space handed over with minimal services – no ceilings, no lighting, no flooring. Tenant must install everything.

Spaces shared by all tenants – lobbies, passages, lifts, bathrooms. Used to calculate common-area factor and recoveries.

Required for property transfers or upgrades:
* Electrical CoC
* Plumbing CoC
* Gas CoC
* Electric fence CoC
* Beetle (coastal regions)

A special permission granted by the municipality allowing a property to be used for a purpose not automatically permitted by its zoning.

Two or more adjoining spaces that can be combined into a single larger tenancy.

Ratio of usable area to gross lettable area (GLA). Lower core factor = more efficient building.

A rental structure where the tenant pays base rental + operating costs + utilities – essentially the full cost.

Parking bays under shade netting, carports, or basement. Priced separately from rental.

Inflation measure often used for rental escalations in long-term leases.

Industrial design allowing trucks to load/unload from both sides of a warehouse. Highly efficient for logistics.

Volume measurement used in warehousing (m³), important for racking and storage planning.

The rental achievable in the open market at present, used for renewals, valuations, and negotiations.

A legally binding contract for the sale of immovable property. Sets out price, conditions, timelines, and obligations of buyer and seller.

The government office where property ownership is registered. All transfers, bonds, servitudes, and title deeds are recorded here.

Clearly marked parking bays allocated to a tenant, either open, covered, or basement.

Security amount (typically 2-3 months) held against damages or unpaid rent; refundable per lease terms.

The specific use permitted for a tenant or building, as defined in the lease or zoning scheme.

The return a developer aims to achieve on a project, usually expressed as a percentage of total development cost.

The total floor area permitted on a site based on zoning and FAR (Floor Area Ratio). Determines how much can be built.

The legal rights attached to a property allowing certain uses, densities, heights, and coverage. Often enhanced through rezoning.

Damage or deterioration to leased premises beyond fair wear and tear. Tenants may be liable to repair at lease expiry.

Owning physical real estate (as opposed to shares in REITs). Income comes from rentals and capital growth.

Additional charges on top of attorney fees – deeds office fees, postage, petties, FICA checks, etc.

A valuation method projecting future cash flows and discounting them to present value using a discount rate.

A space that can be split into smaller lettable units depending on tenant requirements.

A mechanical platform used in industrial properties to bridge the gap between a truck and the warehouse floor for loading.

When two agencies are authorised to market a property simultaneously, unlike a sole mandate.

A comprehensive investigation conducted before buying or leasing property. Includes legal, financial, technical, zoning, and environmental checks.

When a tenant is allowed to move in before the official lease start date, usually to complete fit-out. May be rent-free or charged at a reduced rate.

A legal right allowing someone to use a portion of another person’s property – e.g., access servitudes, stormwater servitudes, or Eskom servitudes.

A mandatory certificate confirming that electrical installations meet safety standards. Required for property transfers and certain upgrades.

When a structure or improvement extends over a boundary line onto neighbouring property or municipal land.

Any claim, lien, bond, servitude, or restriction registered against a property that may affect its use or value.

The tenant’s responsibilities at expiry – reinstatement, repairs, removal of installations, and settlement of utilities.

A formal study required for certain developments to assess environmental risks and obtain approval from environmental authorities.

The annual percentage increase applied to rental. In SA commercial leases, typically 7%-10% for offices and industrial, 6%-8% for retail.

The clause in a lease agreement that sets out how and when rental increases will apply.

The legal process of removing a tenant who breaches the lease or occupies unlawfully. Governed by the PIE Act for residential and common law for commercial.

A marketing agreement giving one agency the sole right to lease or sell a property for a defined period.

A portion of common property allocated for the exclusive use of a specific owner or tenant – e.g., parking bays, courtyards, balconies.

The capitalisation rate applied at the end of a DCF valuation to estimate resale value.

A tenant’s contractual right to lease additional space in the future, often in multi-phase developments.

Visibility of a building or unit from major roads or high-traffic areas – a key value driver for showrooms and retail.

When the state acquires private property for public use, subject to compensation. Relevant for road widening, servitudes, and infrastructure projects.

The exterior face of a building. Important for branding, aesthetics, and compliance with architectural guidelines.

Site works outside the building envelope – paving, landscaping, fencing, stormwater, parking areas.

The operational management of a building – cleaning, security, landscaping, HVAC, lifts, utilities, and maintenance. Critical for A- and P-grade buildings.

The price a property would achieve in an open, competitive market between willing parties. Used in valuations, insurance, and municipal rates.

A zoning metric determining how much bulk can be built on a site. Example: FAR 2.0 on a 5 000 m² site = 10 000 m² permissible bulk.

FICA (Financial Intelligence Centre Act) in South African commercial property requires property practitioners to verify identities of buyers, sellers, landlords, and tenants to prevent money laundering and terrorism financing

Issued by the fire department confirming that fire equipment, escape routes, and systems meet regulatory standards.

The internal construction and finishes installed by the tenant – ceilings, partitions, flooring, lighting, furniture, cabling. Often supported by a TI allowance from the landlord.

A financial contribution from the landlord to help the tenant customise the space. Usually expressed as R/m² or a lump sum.

A space that can be adapted for multiple uses – office, storage, light industrial. Popular in business parks.

The maximum weight a floor can support, expressed in kN/m². Critical for warehousing, racking, and heavy equipment.

A scaled drawing showing the layout of a space – walls, doors, windows, services. Used for space planning and GLA verification.

The ground-level area covered by a building. Important for coverage calculations and redevelopment potential.

An incentive offered by landlords to attract tenants, usually during fit-out or early months of occupation.

Property where the owner holds full title to the land and buildings, as opposed to sectional title or leasehold.

The length of a property or unit facing a street or high-visibility area. A key value driver for retail and showrooms.

A lease where the tenant is responsible for repairs, maintenance, and sometimes insurance. More common in industrial and standalone buildings.

When a building becomes less competitive due to outdated design, low ceilings, poor layout, or inefficient systems – even if structurally sound.

Unused or banked development bulk that can be exercised later, often increasing a site’s long-term value.

The total constructed area of a building, including common areas, plant rooms, and service spaces. Used for valuations and construction costing, not rental.

A zoning category allowing a mix of commercial uses – offices, retail, restaurants, showrooms. Specific rights vary by municipality.

Zoning permitting manufacturing, warehousing, logistics, and heavy industrial uses. Often

A soil and ground-condition assessment required before development. Determines foundation design, compaction, and construction feasibility.

The total area a landlord can charge rent for, measured according to SAPOA standards. Includes internal walls and usable areas; excludes common areas and vertical penetrations.

A classification of office quality: P-Grade, A-Grade, B-Grade, C-Grade. Based on age, finishes, systems, and location.

A building designed to reduce environmental impact – energy efficiency, water savings, waste reduction. Often certified by the Green Building Council of South Africa (GBCSA).

A formal sustainability rating (4-Star, 5-Star, 6-Star) issued by the GBCSA. Increasingly required by corporates and institutional landlords.

A lease where the landlord carries most operating costs and the tenant pays a fixed rental. Less common in SA offices; more typical in older buildings or short-term deals.

All costs required to operate a building – security, cleaning, rates, refuse, insurance, landscaping, management fees.

Total income from a property before deducting operating expenses. Includes rental, parking, storage, and recoveries.

The difference between selling price and total development or acquisition cost. Used in feasibility studies.

A rental structure where the tenant pays a single all-inclusive amount covering base rental + operating costs. Utilities may still be charged separately.

A financial instrument issued by a bank guaranteeing payment of rental, deposits, or purchase price. Common in commercial leases and sales.

The condition in which premises must be delivered to the tenant (warm shell, cold shell, white-boxed) or returned at lease expiry.

Technical building services such as HVAC, electrical systems, lifts, generators, plumbing, and fire systems. Managed under facilities management contracts.

Paved or compacted outdoor area used for truck circulation, container stacking, or industrial storage.

A classification determining the required fire-protection system based on the building’s risk profile and stored materials.

Designated areas for storing chemicals or flammable materials. Requires compliance with fire and environmental regulations.

A primary lease between the landlord and a main tenant, who may then sublet portions of the premises.

A zoning control limiting the maximum building height. Influences development feasibility and bulk utilisation.

A building protected under heritage legislation due to historical or architectural significance. Redevelopment requires special approvals.

The most profitable, legally permissible, and physically feasible use of a property. Central to valuations and redevelopment decisions.

Costs incurred while holding a property – rates, security, insurance, maintenance – especially relevant for vacant or development sites.

A deposit paid to secure premises or demonstrate intent to lease or purchase, usually subject to final contract.

Flexible workspace model where desks are shared rather than assigned. Common in coworking and hybrid-office environments.

Operational rules governing tenant behaviour and building use – parking, smoking, deliveries, signage, after-hours access.

Mechanical systems that regulate temperature and air quality. A standard requirement for A- and P-grade offices.

A workplace model combining remote and in-office work. Influences space planning, parking demand, and office design.

Benefits offered by landlords to attract tenants – rent-free periods, fit-out allowances, reduced escalations, or stepped rentals.

A secure, multi-unit estate designed for warehousing, logistics, and light manufacturing. Usually includes 24-hour security, truck access, and shared services.

A municipal zoning category permitting manufacturing, warehousing, logistics, and related uses. Includes Industrial 1, 2, 3 depending on intensity.

Fees paid by developers to municipalities for bulk services – water, sewer, electricity, roads.

The legal right or physical ability to enter a property. Often paired with egress.

A clause allowing termination of a lease if the tenant becomes insolvent, enters business rescue, or is liquidated.

A formal record of the condition of premises at occupation or exit. Protects both landlord and tenant.

A financial contribution from the landlord towards the tenant’s fit-out. Usually expressed as R/m² or a lump sum.

Large-scale property owners such as REITs, pension funds, and insurance companies. Major players in SA commercial real estate.

A municipality’s long-term planning document guiding infrastructure, zoning, and development priorities. Important for developers and investors.

A deposit held in an attorney’s trust account, accruing interest for the tenant or buyer, depending on the agreement.

A key investment metric measuring the annualised return of a property or development over time. Used in feasibility studies.

A detailed list of fixtures, fittings, and conditions at the start of a lease. Used to assess reinstatement at expiry.

Property held to earn rental income or capital appreciation, rather than for owner-occupation.

A legal principle in leases where multiple tenants (or sureties) are each individually responsible for the full rental and obligations – not just their share.

A partnership between two or more parties to develop, own, or operate a property. Common in large developments where landowners partner with developers or investors.

A sub-investment-grade rating assigned to a country or entity. Impacts borrowing costs, cap rates, and investor appetite in the property market.

A legal entity (company, trust, close corporation) that can enter into leases, own property, and be held liable. Most commercial tenants are juristic persons.

Owner granting occupation rights in exchange for rent.

A fit-out contribution provided by the landlord, separate from the tenant installation (TI). Usually covers base building items like ceilings, lighting, or air-conditioning.

The legally binding contract between landlord and tenant setting out rental, term, obligations, use, deposits, and conditions.

The date on which the lease officially starts – rental, escalations, and obligations begin from this date.

The date on which the lease term ends, triggering reinstatement obligations, renewal options, and exit procedures.

Property where the land is leased from a landowner (often government or tribal authority) for long periods, e.g., 30-99 years.

The usable area a tenant can occupy exclusively. Often slightly smaller than GLA because it excludes internal walls and structural elements.

A non-binding document outlining the key terms of a proposed lease or sale before drafting formal agreements.

A monthly contribution paid by sectional title owners to cover common-area expenses – security, cleaning, maintenance, insurance.

Insurance covering legal liability for injury or damage occurring on the property. Often required in leases.

Industrial property suited for warehousing, distribution, and light manufacturing. Typically features good height, roller doors, and small office components.

A designated area for loading and offloading goods. Critical in industrial and retail properties.

The maximum weight a floor can support, expressed in kN/m². Essential for racking and heavy equipment.

The municipality responsible for zoning, rates, utilities, building approvals, and compliance.

A warehouse designed for distribution, cross-docking, and high-volume goods movement. Features include high eaves, large yards, and multiple roller doors.

A lease typically longer than 5 years. Common for anchor tenants, corporates, and industrial users.

A fee charged by the property manager for managing the building, usually a percentage of gross rental or recoveries.

The authority given to a broker or agency to market a property.
* Sole mandate: Exclusive rights to market.
* Joint mandate: Two agencies share rights.
* Open mandate: Any agency may market.

A Mandatory Disclosure Form (MDF) from the Property Practitioners Regulatory Authority (PPRA) is a legal document, mandated by the Property Practitioners Act 22 of 2019, that compels a seller or lessor to declare all known property defects, both latent and patent, before finalizing a sale or lease agreement.

The price a property would sell for between willing parties in an open market. Central to valuations and bank financing.

Measurement of utilities (electricity, water) per tenant. Essential for accurate recoveries and fair billing.

An intermediate floor within a warehouse or industrial unit. Often used for storage or light office space. Must comply with structural load requirements.

A development combining multiple uses – retail, office, residential, hotel, or industrial – within one precinct or building.

Zoning that allows a combination of uses on one site – retail, office, residential, hospitality.

A loan secured against immovable property. Registered at the Deeds Office.

A building occupied by multiple tenants, each with separate leases, recoveries, and space allocations.

A tax charged by the municipality based on the property’s municipal valuation. A major component of operating costs.

Utilities supplied by the municipality – water, electricity, sewer, refuse. Often recovered from tenants based on consumption or pro-rata share.

The value assigned by the municipality for rates purposes. Not the same as market value and often contested.

A lease structure where the tenant pays base rental plus certain operating costs. Variants include Net, Double-Net, and Triple-Net (NNN) leases.

Income from a property after operating expenses but before interest and taxes. Formula: Gross Income – Operating Expenses. A key metric in valuations and investment analysis.

The rental amount excluding operating costs, rates, and other recoveries. Tenants pay these separately.
or TI allowances. Used by asset managers and valuers to compare deals accurately.

Expected deterioration from reasonable use of the premises. Tenants are not liable for this at reinstatement.

A long-term lease (typically 10 years or more) registered in the Deeds Office. Often used for land leases, telecom towers, and large industrial sites.

A legal mechanism linking two or more properties so they cannot be sold separately. Common in large developments or phased projects.

The period required to terminate or renew a lease. Often 3-6 months before expiry in commercial leases.

A municipal certificate confirming the building is safe and compliant for occupation. Required before tenants can legally move in.

The date the tenant is allowed to take physical occupation of the premises. May differ from the lease commencement date.

A temporary rental paid by a buyer who takes occupation of a property before transfer. Common in commercial sales.

Uncovered parking bays, typically the cheapest parking option. Charged separately from rental.

The mechanism by which landlords recover operating costs from tenants, typically on a pro-rata GLA basis.

The recoverable expenses required to run a building – security, cleaning, landscaping, municipal rates, refuse, insurance, management fees. Usually charged over and above base rental.

The number of parking bays provided per 100 m² of GLA. Example: 4 bays / 100 m² is standard for modern offices.

The monthly cost charged for parking bays – usually differentiated as open, covered, or basement.

Internal walls installed as part of a tenant’s fit-out. Impacts reinstatement obligations at lease expiry.

A clause imposing financial penalties for late payment, early cancellation, or breach of lease terms.

A guarantee provided by a contractor or tenant to ensure fulfilment of obligations – often used in construction and long-term leases.

The specific use allowed under the lease (e.g., office, warehousing, retail). Breach can lead to cancellation.

Municipal approval required for building plans, rezoning, consent use, or departures.

A defined commercial area with shared branding, security, landscaping, and management – e.g., Sandton CBD, Waterfall, Century City.

The highest office grade – modern, energy-efficient, high-spec finishes, excellent location, and strong amenities.

A tenant’s share of operating costs based on their GLA as a percentage of the building’s total GLA.

Fees paid to architects, engineers, quantity surveyors, planners, and other consultants in development projects.

The coordination of construction, fit-out, or refurbishment projects – timelines, budgets, contractors, compliance.

The day-to-day management of a building – leasing, maintenance, financial reporting, tenant relations, and compliance.

A professional responsible for cost estimation, budgeting, tendering, and financial control of construction projects. Central to development feasibility and cost management.

A certificate issued by the municipality confirming that all rates and service charges are paid up. Required before transfer of ownership.

Amounts charged to tenants for their pro-rata share of operating costs – security, cleaning, refuse, insurance, landscaping, etc.

The tenant’s obligation at lease expiry to return the premises to the agreed condition – often “white-boxed” or original state.

A tenant’s contractual right to extend the lease for an additional term, usually at market rental.

A process of adjusting rental to market levels at renewal or at predetermined intervals.

A schedule listing all tenants, rentals, lease terms, escalations, and recoveries. Essential for valuations and due diligence.

A leasing incentive where the tenant pays no rental for a defined period, usually during fit-out or early occupation.

Another term for GLA, depending on measurement standards. In SA, SAPOA standards apply.

The combination of tenant types in a retail centre – anchors, line shops, services, food. Impacts foot traffic and turnover.

The internal distribution of services within a building or site. Impacts capacity, compliance, and tenant suitability.

A measure of profitability comparing net income to total investment cost. Used in development and acquisition analysis.

A municipal process to change a property’s zoning rights – e.g., from industrial to mixed-use. Impacts bulk, height, and permitted uses.

A clause giving a tenant or buyer the right to match any third-party offer before the landlord sells or leases to someone else.

Land set aside for future road widening or infrastructure. Affects development potential and building lines.

A vertically opening industrial door used for loading, offloading, and vehicle access. A key feature in industrial leasing.

The height from the floor to the underside of the roof or eaves. Critical for warehousing, racking, and logistics operations.

The industry standard for measuring GLA, NLA, common areas, and efficiency ratios in South Africa. Used for all professional leasing and valuation work.

A form of property ownership where units and common property are governed by a body corporate. Common in office parks and mixed-use schemes.

A registered right allowing another party to use or restrict part of a property – e.g., access servitudes, stormwater servitudes, Eskom servitudes.

The condition in which premises are handed over:
* Cold shell: Bare structure, no ceilings or services.
* Warm shell: Basic finishes, ceilings, lighting, HVAC.

Rights granted to a tenant to install signage on the building facade, pylon, or rooftop. A major value driver for high-visibility sites.

The percentage of the site covered by buildings at ground level. Controlled by zoning and impacts development potential.

A municipal-approved plan showing building placement, parking, access, landscaping, and services. Required before construction.

A drawing showing the layout of buildings, parking, access, and boundaries on a property.

Non-technical building services – cleaning, landscaping, hygiene, waste management, concierge.

A rooftop or ground-mounted solar installation used to reduce electricity costs and improve sustainability ratings.

The process of designing internal layouts – workstations, meeting rooms, circulation – to optimise efficiency and workflow.

A building occupied by a single tenant or owner, offering full branding and operational control.

Compliance with laws and regulations – fire, health and safety, electrical, building codes, environmental.

A lease where the primary tenant (head tenant) leases part or all of the premises to another party.

Individual metering of utilities (electricity, water) for each tenant. Essential for accurate recoveries.

The legal process of dividing a property into smaller erven. Requires municipal approval and cadastral updates.

An official cadastral diagram showing property boundaries, servitudes, and dimensions. Required for transfers and subdivisions.

A condition in a sale or lease that must be fulfilled before the agreement becomes binding – e.g., bond approval, board approval.

Energy-efficient lighting, water-saving fixtures, solar, greywater systems, insulation – often linked to Green Star ratings.

A structure where multiple investors pool funds to acquire a commercial property, usually managed by a professional operator.

When a tenant fails to meet lease obligations – rental arrears, unauthorised use, or breach of terms.

A financial contribution from the landlord to assist the tenant with fit-out – partitions, flooring, cabling, lighting. Usually expressed as R/m².

An assessment of a tenant’s financial strength, industry, trading history, and covenant quality. Influences deposit requirements and lease terms.

The duration of the lease – typically 3, 5, or 10 years in commercial property.

Restrictions or rights registered against a property – servitudes, building lines, use limitations.

The legal document proving ownership of a property. Includes servitudes, restrictions, and conditions.

A tax payable on property purchases (unless VAT applies). Calculated on a sliding scale.

The legal registration of property ownership at the Deeds Office. Occurs only once the transaction is lodged and registered.

A lease where the tenant pays base rental + operating costs + rates + insurance. Common in standalone industrial and retail properties.

The ability of a site to accommodate truck movement. Essential for logistics and industrial properties.

A fully completed, ready-to-occupy space delivered by the landlord, including design, fit-out, and compliance.

A clause in retail leases requiring tenants to report monthly turnover for turnover-based rental calculations.

A rental structure where the tenant pays a base rental plus a percentage of turnover. Common in retail.

When the landlord recovers less than the actual operating costs from tenants. Adjusted during annual reconciliations.

The total area covered by a roof structure, including canopies and overhangs. Relevant in industrial and logistics properties.

A property not achieving its full income or occupancy potential. Often targeted for repositioning or redevelopment.

Parking located below ground level – typically the most expensive parking type due to construction cost and ventilation requirements.

Property free of mortgage bonds or other financial claims. Attractive for refinancing or sale.

Battery-based backup power used to protect sensitive equipment during outages or

A SARS tax incentive for developments or refurbishments in designated urban regeneration areas. Offers accelerated depreciation for qualifying projects.

A municipal planning boundary that separates urban development areas from rural or agricultural zones. Influences rezoning and development rights.

A lease clause defining the specific use allowed for the premises – e.g., office, warehousing, retail, medical. Breach can lead to cancellation.

The rights granted by zoning or consent use that determine what activities may legally occur on a property.

The internal area a tenant can physically use, excluding walls, columns, and service shafts. Often smaller than GLA.

Essential services supplied to a building – electricity, water, sewer, refuse, gas. Typically billed to tenants based on consumption or pro-rata share.

The process of recovering utility costs from tenants through metering or allocation. Accurate sub-metering is critical for fairness and compliance.

The percentage of a building or portfolio that is unoccupied. A key performance indicator for asset managers and investors.

A property delivered empty and free of occupants on transfer or occupation. Essential in sales agreements.

A professional assessment of a property’s market value using methods such as income capitalisation, DCF, or comparative sales.

A 15% tax applied to commercial property transactions when the seller is a VAT vendor. Can replace transfer duty if the transaction is VAT-inclusive.

Operating costs that fluctuate based on usage – electricity, water, refuse, cleaning. Recovered from tenants via monthly statements.

A clause meaning “as is,” where the property is sold in its current condition. Latent defects must still be disclosed if known.

An industrial building used for storage, logistics, and distribution. Key specs include eaves height, yard depth, floor loading, and power supply.

A reinstatement or handover condition where the premises are delivered with clean walls, ceilings, lighting, and basic services, ready for tenant fit-out.

A measure of investment return, calculated as Net Operating Income / Purchase Price. Used extensively in valuations and acquisitions.

A VAT category where the rate is 0%, typically applicable when a commercial property is sold as a going concern, provided all SARS requirements are met.

The municipal classification that determines what activities may legally occur on a property – e.g., Business 1, Industrial 2, Residential 4. Zoning controls use, height, bulk, coverage, and parking ratios.

An official municipal document confirming the zoning rights applicable to a property. Required for due diligence, development applications, and financing.

The municipal framework that sets out all zoning categories, development controls, and land-use rights. Every municipality in SA operates under a Land Use Scheme.