Service stations- how outgoing expenses are calculated

Discussion in 'Commercial Property' started by godzuki, 8th Feb, 2018.

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  1. godzuki

    godzuki New Member

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    Hi,
    Looking at a service station/drive thru food and was wondering how outgoing expenses are calculated? Normally outgoings are calculated on a pro-rata basis on lettable area. However service stations typically have a small shop space compared to the area they use so if there are other tenancies to share outgoings this method is not accurate.
    Do they make base it on shop area + fuel forecourt area?
    And for a drive-thru do they base it on shop area + drive-thru hardstand area?

    Also, is landlord's land tax a recoverable outgoing in Qld for a service station?

    Thanks.
     
  2. Player

    Player Well-Known Member

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    What does the lease say?. I presume this isn't vacant possession. Read the lease thoroughly and then read it again.
    Land tax might be recoverable on a single holdings basis. Again, depends on what is in the lease. It's the book of rules.
     
    Beano likes this.
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Contamination - steer clear of these things as no amount of rent will compensate for the cost of remediation.
     
    MorganHB likes this.
  4. godzuki

    godzuki New Member

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    Sorry I should have mentioned that this is a development site so no lease created yet. Just wanting to see how outgoings are typically apportioned for multi tenanted service stations. Can you provide more detail on the single holding basis and how it applies to land tax? Thanks again.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    If it falls under the retail tenancies Act, you won't be able to pass on costs for land tax.