Useful Information

Commercial Property Glossary A brief explanation of the terms frequently used in commercial property transactions: NIA (Net Internal Area) The Net Internal Area is defined as the usable space within the perimeter walls of a property. It excludes areas such as the WC’s, space occupied by solid dividing walls, staircases etc. NIA is the standard figured quoted for Office space, however with new developments you may find that space is quoted GIA or GEA (please see below) as these measurements may have been taken from plan where calculation of an accurate NIA can be difficult. GIA (Gross Internal Area) The Gross Internal Area refers to the total area within the perimeter walls of a property and makes no allowance for the space occupied by staircases, walls, WC’s etc. This measurement is the standard measurement given for Industrial property with the exception of new build units which may be stated GEA (please see below). Depending on the layout and design of the property there can be a significant difference between the usable NIA (please see above) and the GIA or GEA (please see below) and a tenant or purchaser would be wise to consider this in their evaluation of individual properties. GEA (Gross External Area) The Gross External Area refers to the total area of a property when measured around the exterior of the perimeter walls. This is a measurement frequently stated for new build properties where the measurements may have been calculated from plan. ITZA (In Terms of Zone A) ITZA refers to a method of ‘zoning’ retail rents. In simple terms ‘Zone A’ refers to the area of a Retail premises which falls within a 6m depth of the shop frontage. ‘Zone B’ is the 6m depth behind ‘Zone A’, ‘Zone C’ the 6m depth behind ‘Zone B’ and so on and so forth. ITZA allows a psf (please see below) figure to be quoted for the rent making rental comparables easier. PSF (Per Square Foot) PSF normally refers to the price or value (either rental or purchase) of a property Per Square Foot. PSqM (Per Square Metre) PSqM normally refers to the price or value (either rental or purchase) of a property Per Square Metre. PAX (Per Annum Exclusive) A rental figure for a particularly property on a Per Annum basis and exclusive of VAT, Business Rates, Utilities, Telecoms and any additional Service, Landlord or Estate Charges that may be applicable to the property. Business Rates Business Rates are quite simply a commercial property equivalent of residential council tax. Business Rates are exclusive of waste collection etc. however. For more information on Business Rates or how to appeal the rating of your property please contact our head office. Covenant A landlord will judge the covenant of a prospective tenant by looking at their accounts and references and this is referred to as a firm’s covenant. The covenant of a tenant has an impact on the investment value of a property.