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dTZ | In Situ
11
Spain
OperATIOnAl
•
rent is paid on the lettable floor
space, which is gross and includes
a proportional part of the common
areas; the net, useable area is typically
between 15 and 25% lower; however,
some older properties may have a
gross/net loss of up to 40%+
•
Property taxes are normally passed
onto the tenant through the service
charge; however, sometimes, this is
passed on separately and in addition to
the service charge
•
At the end of the lease, the tenant will
normally be expected to reinstate the
demise to the state it was in at the
time of handover (without partitioning,
cabling, furniture, fixtures and fittings).
reAl eSTATe
•
The real estate market is generally
opaque, with limited transparency
•
There is no generally accepted basis
for the measurement of real estate
•
In the case of a sub-letting or
assignment, the landlord has the right
to increase the rent by up to 20%;
this is a legal right; often, as part of
the negotiations, the landlord waives
these rights, but if not, the legal right
remains
•
It is common practice in commercial
leases for the tenant to opt out of the
statutory right for renewal at the end
of the term; the same applies to rights
of first refusal in the event of a sale
of the property; again, these are legal
rights for the lessee under the urban
Lease Law; most leases will include the
lessee waiving these rights
•
Placing of bank guarantees (6 to 12
months of rent + VAT) is commonplace
•
Beware of conflicts of interests – real
estate brokers often get commission
from landlords even when they are
representing the tenant.
leGISlATIve
•
The tenant is obliged by law to pay
a deposit equivalent to two months
rent at the commencement of the
lease; this will be re-paid at the end of
the term, subject to the tenant being
up to date with all rent and utilities
payments and with all other terms of
the lease
•
rents are subject to annual indexation
based on the consumer Price Index
(upwards or downwards).
