Property
Glossary

A-Grade Building

Highest quality commercial building classification featuring premium finishes, modern amenities, strategic locations and superior management.

Anchor Tenant

Major tenant that occupies a significant portion of a development and attracts other tenants.

Base Rental

Core rental amount payable for occupation, excluding operating costs, rates and utilities.

Body Corporate

Legal entity managing common property in a sectional title scheme; funded by owner levies.

Broker

Licensed professional facilitating property transactions between landlords/sellers and tenants/buyers.

C-Grade Building

Older/basic buildings with functional but dated finishes; generally more affordable rentals.

Deed of Sale

Legal document transferring ownership from seller to buyer; registered at the Deeds Office.

Deposit (Security)

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

Escalation

Annual increase applied to rent/costs (often 7–10% in SA) either fixed or CPI-linked.

FICA

Financial Intelligence Centre Act; requires KYC/AML checks for property transactions.

GLA (Gross Lettable Area)

Total floor area available for exclusive tenant use; basis for rent calculations.

Gross Rental

Base rental plus operating costs, rates and recoveries; provides total occupancy cost.

Industrial Property

Warehousing, distribution or manufacturing space; high eaves, loading and 3‑phase power common.

Landlord

Owner granting occupation rights in exchange for rent.

Lease

Contract granting occupation for a defined term in exchange for rent, with agreed conditions.

Levy

Monthly contribution by sectional title owners to maintain common property and insure the building.

Letting Agent

Broker specialising in leasing and tenant placement on behalf of landlords.

Mandate

Agreement authorising a broker to market a property (exclusive/sole or open/non‑exclusive).

Municipal Rates

Local taxes and service charges, often recovered from tenants.

Net Rental

Base rental excluding operating costs and recoveries (tenant pays those separately).

Occupation Date

Date tenant takes possession; may precede rent start if a fit‑out rent‑free is granted.

Operating Costs

Building running costs (security, cleaning, maintenance, insurance, management).

Parking Ratio

Bays per 100m² of GLA (e.g., 4–5/100m² offices; 1–2/100m² industrial).

Rent‑Free Period

Initial period with no rent, typically to accommodate tenant fit‑out.

Sectional Title

Ownership of a unit plus shared ownership of common property via a body corporate.

Sole Mandate

Exclusive appointment of a single broker for a defined period.

Tenant Installation Allowance (TIA)

Landlord contribution to tenant fit‑out, usually per m².

Transfer Duty

Tax payable to SARS on transfer, calculated on a sliding scale.

Triple Net Lease

Tenant pays base rent plus all operating costs, rates, taxes, insurance and maintenance.

Voetstoots

“As is” sale condition where the buyer accepts existing defects (subject to legal limits).

Zoning

Municipal rules defining permitted land uses (e.g., commercial, industrial, retail).