Glossary of Useful Terms

 

Administrative Body

The organisation running an empty space project.

Bank Guarantee

 

A form of security deposit, a bank guarantee is a document provided by the tenant’s bank that “guarantees” the landlord the right to use the guarantee if the tenant is in default. Must not contain expiry date.

Blanket Guarantee

 

A bank guarantee that combines the total security deposit due under a number of Leases which may include a “buffer” for future stores.

Casual Mall Merchandising (or Casual Mall Leasing)

 

The leasing of temporary space within the centre, usually in the mall or common area. Usually taken by existing tenants within the centre but can also be used by external retailers.

Commencement Date

The date a Lease or Licence Agreement commences.

Common Area

 

The mall or any area of the centre that is not leased by a permanent tenant.

Coordinator

An individual coordinating an empty space project for an administrative body.

Core Retail

Core retail covers the core retailing trading categories of Food Retail, Apparel & Fashion, Leisure/General/Home, Food Catering and Retail Services.

Defit

The process of taking out all fixtures and fittings within the tenancy to return the premises back to original standard.

Design Concept

 

The design intent embodied in plans and drawings for the shopfront layout of the premises, the shopfront signage concept for the premises setting out the trading name of the tenant and the shop layout of the premises.

Empty Space Project

Where a landlord allows use of their vacant premises for little or no rental return, usually to a community or cultural initiative.

Exclusion Zones

 

A “zone” (usually in front of a major retailer or in some rare cases, a specialty retailer) in which the landlord is prohibited from placing kiosks and/or casual mall leasing.

Exclusivity

The exclusive right of a tenant to sell particular goods or services.

Fitout Period

 

This is the period of time in which the tenant fits out the premises ready for trading. License Agreements often do not have have a fitout period.

Fitout Requirements

Fitout work the tenant is required to do to the premises under the Lease or Licence Agreement before commencing to trade form the premises.

GLA

 

Gross Lettable Area – the combined total of all areas available for leas within a centre, measured from the centre line or joint partitions or walls and from outside faces of external walls or the building alignment including shop fronts. Does not include common areas.

Gross Rent

 

The combined total of minimum rent, outgoings, operating expenses, promotion fund and any other expense negotiated as payable under the Lease or Licence Agreement.

Handover

 

The day on which the landlord hands over possession of the premises to the tenant for the purpose of commencing the Tenant’s Works.

Hoarding

A large blank cover to enclose the front of the tenancy whilst fitout works are being completed. In many centres no works or packing or unpacking of tenancies can be completed without a hoarding.

Kiosk

 

Freestanding premises that are situated in a mall or common area.

Landlord

The landlord or licensor named in the Licence Agreement or Lease, its agents and any other person or company appointed by it to exercise any or all of its powers or functions relating to the premises, Licence Agreement or Lease.

Lease

A contract granting use or occupation of property during a specified period in exchange for a specified rent. Entered in in respect to the premises between the landlord, the tenant and any guarantor.

Licence Agreement

 

Sometimes used for temporary leasing, a Licence Agreement is similar to a Lease but a number of advantages for empty space projects. The decision to issue a Licence Agreement instead of a Lease ultimately rests with the landlord.

OH&S

Occupational Health & Safety

Open-to-buy (OTB)

 

An inventory-purchasing plan based on anticipated sales and desired inventory turnover rate for various categories of merchandise, departments or entire operations.

Operating Expenses / Outgoings

 

The total in each Lease year of the costs and expenses incurred in relation to premises, and often to the centre they are located in.

Other Contractors

Any contractor, artist, trades person or other person engaged by any person to do work.

Premises

 

That part of the centre as described in the Lease or License Agreement which is or is to be leased or licensed to the tenant or otherwise occupied by the tenant.

Public Liability

 

Liability associated with another person’s death, injury or damage accidentally caused by the tenant’s or tenant’s employee’s negligence.

Public Liability Insurance

 

Insurance taken out by the tenant to insure against public liability.

Retail

As defined under the Retail Leases Act 1994 (NSW) at http://www.austlii.edu.au/au/legis/nsw/consol_act/rla1994135/sch1.html

Tenant

The person named as tenant or licensee in the Lease or Licence Agreement including that person’s executors, administrators, permitted assigns, contractors and all other persons under the tenant’s control.

Tenant’s Preliminary Activities

Includes all things or tasks which are necessary for the tenant to do in order to comply with its obligations under the Lease or Licence Agreement or these fitout requirements so as to ensure that the tenant is able to commence the Tenant’s Works upon Handover including design of premises appointment of shopfitter and local authority approvals.

Tenant’s Works

The physical works which the tenant must complete to enable it to trade from the premises and fulfill its obligations under the Fitout Requirements and the Lease or Licence Agreement.

 

Trading date

The first day the tenant trades from the premises.