The rate in a listing is only a starting point. The real cost of a lease depends on what the rate includes, what is charged on top and how it changes over time.
How the rate is quoted
In the Russian warehouse market, rent is usually quoted in roubles per square metre per year; in offices and retail, monthly rates also appear. The first step in any comparison is to bring offers to the same unit.
What the payment is made of
| Component | What it is | What to clarify |
|---|---|---|
| Base rent | Payment for the use of the space. | Which area it applies to and whether VAT is included. |
| Operating expenses (OPEX) | Running the property: engineering maintenance, site cleaning, snow removal, security, management. | Whether they are in the rate or charged separately, fixed or reconciled against actual costs. |
| Utilities | Electricity, heating, water. | Metered or calculated, and whether the tenant has their own meters. |
| VAT | Tax that a VAT-registered owner charges on the rent. | Whether the rate is “including VAT”, “plus VAT”, or VAT is not charged because of the owner's tax regime. |
| Security deposit | A sum the tenant pays as a guarantee of performance. | Amount, and conditions for offsetting it against final months or returning it. |
Base rent
- What it is
- Payment for the use of the space.
- What to clarify
- Which area it applies to and whether VAT is included.
Operating expenses (OPEX)
- What it is
- Running the property: engineering maintenance, site cleaning, snow removal, security, management.
- What to clarify
- Whether they are in the rate or charged separately, fixed or reconciled against actual costs.
Utilities
- What it is
- Electricity, heating, water.
- What to clarify
- Metered or calculated, and whether the tenant has their own meters.
VAT
- What it is
- Tax that a VAT-registered owner charges on the rent.
- What to clarify
- Whether the rate is “including VAT”, “plus VAT”, or VAT is not charged because of the owner's tax regime.
Security deposit
- What it is
- A sum the tenant pays as a guarantee of performance.
- What to clarify
- Amount, and conditions for offsetting it against final months or returning it.
Indexation
Long-term leases may include annual indexation — by a fixed percentage or linked to inflation. Its effect on costs over the whole lease term is worth calculating before signing.
If the lease does not describe an indexation mechanism, as a general rule the rent can be changed by agreement of the parties no more than once a year.
Additional charges
- Car parking spaces and truck parking.
- Access control and additional security.
- Connection of additional electrical capacity.
- Signage and advertising.
- Fit-out works for the tenant and how they are compensated.
How to compare offers
The reliable approach is to calculate the full annual cost per usable square metre: base rent adjusted for the area factor, operating expenses, expected utilities, VAT and indexation. After this calculation, two offers with different headline rates often swap places.