Commercial leasing decisions are about a lot more than the rent ­ or should be, if tenants want to minimise their liabilities.

So says Dominic Rose, director of ASA Commercial, the new commercial property consultancy within the ASA construction management group, who notes: "Prospective tenants are not always aware that negotiating a new lease is not just about rentals.

"But they should also be thinking about tenant installation allowances, escalations and repairing clauses, which can have just as big a financial impact in the longer term.

In one recent negotiation, for example, ASA Commercial was able to achieve a 42 percent saving on a tenant¹s installation costs.

In another instance it was able, by conducting a professional building survey, to protect a tenant from the effects of a repairing clause, resulting in long-term savings of at least R300 000. The clause had originally required that the tenant hand back a building in an "as new" condition at the end of the lease period ­ even though the building was more than 10 years old with various defects.

It is clear, says Rose, that it is increasingly necessary for tenants in lease negotiations to be represented by a company such as ASA Commercial, which offers a full range of property-related services to help clients achieve the best overall deal.

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