What type of market research should I conduct before entering a lease?

• Rent questions to ask include:
  • the average rent in the area you are interested in; and
  • what is available elsewhere for the same rent.
• Rent review questions to ask include what kind of review method the landlord uses. This could be:
  • a CPI review;
  • a market review;
  • a fixed percentage review; or
  • a combination.
• Term questions to ask include:
  • how long are the lease terms being offered in the area you are looking at; and
  • are there any other landlords who are willing to enter leases with an option to renew.
• Incentive questions to ask include whether there are any landlords providing incentives to tenants to enter leases such as:
  • offering a contribution to the cost of fitting out the premises; or
  • early access arrangements to allow installation of fixtures. 
• Vacancy rate questions to ask include:
  • what the current vacancy rate is in the area you are interested in; and
  • whether a particular landlord has a high or low vacancy rate.