Leases and transactions

Service charges

Ongoing building costs passed on to the tenant in addition to the net rent.

In commercial leases, the items agreed in the lease are recoverable, often based on the German Operating Costs Ordinance: property tax, insurance, water, drainage, winter services, maintenance of sprinklers, fire alarm systems and doors, security and possibly management. They are settled annually against advance payments.

Typical items in logistics buildings

Significant items are property tax, building and liability insurance, maintenance and inspection of sprinklers, fire alarm systems, doors, dock levellers and smoke vents, winter services on large yards, security and grounds maintenance. Tenants often contract electricity and heat directly.

Management and maintenance

Management costs and maintenance are only recoverable if expressly and transparently agreed. Standard clauses with uncapped recovery of maintenance can be invalid. A cost cap or fixed percentage creates predictability for both sides.

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