Istanbul

Space Measurement Standard

*

Space Unit of Measure

Square Meters

Financial Data Below Reported In

USD

Notes:

*Special market standard: floor leasable area is measured as the entire floor from outside of the facade, including all floor common areas (elevator shafts, stairs, floor lobby, etc)
25%*
Typical Loss Factor from Rentable to Useable Square Meters

Loss Factor Notes:

*Usable area is calculated by deducting vertical shafts from the Total area that is found by measuring between the interior boundaries and the building’s permanent exterior walls.

Landlord Concessions

Fit-Out Concession

The Landlord typically does not provide a contribution or concession to fit-out as a part of the lease transaction.

Fit-Out Cost Notes:

Exceptions can be seen in some deals

Rent-Free Period

In addition to the fit-out contribution, the Landlord typically provides a contribution or concession in the form of a rent-free period.

Standard Range of Rent-Free Months

1mo.-6mo.

Typical number of rent-free months.

Rent-Free Period Notes:

1-6 months rent-free is given according to size of the leased space

Low figure: for less than 250 SQM
High figure: for more than 1000 SQM

Lease Provisions

Lease Term

3yrs.-5yrs.

Typical lease term in years.

Operating Expenses & Service Charges Included

Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.

Additional Charges

$3/sm-$7/sm

Estimated range for all additional charges per Square Meters.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Service Charge Notes:

Additional charges cover only common building operating expenses/service charges. All other expenses are the tenant's own concern.

Lease Timeline: The following apply to both office and industrial leases.

Lease Execution Requirements:

Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable

Requirements Notes:

3-6 months rent upfront + 1-3 months rent security deposit in cash or bank guarantee

Negotiated Subletting/Assignment

Typically, the tenant's right to sublease or assign the space is negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent IS still required.

Negotiated Subletting/Assignment Notes:

Sublease to group companies without landlord's consent and to third parties with written approval is pretty standard

Statutory Subletting/Assignment

This IS a statutory right.
Landlord Consent: The Landlord's consent is still required.

Blend & Extend Strategies

Typically, a tenant can take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Statutory Early Termination

This is NOT a statutory termination right.

Negotiated Early Termination

It IS typical for tenants to be able to negotiate an early termination right in the lease agreement.

Early Termination Notes:

Typical market practice is the ability to terminate after the third year with 6 months prior notice for 5-year lease contracts.

Statutory early termination: contractual only and term can vary for different landlords and deals

Typical costs: none if terminated according to lease contract

Obligations Upon Lease Expiration

Basic broom clean condition and removal of special installations.
Dilapidations.
Complete restoration to shell.
Other

Tenant Obligation Notes:

Based on the lease, reinstatement costs may apply

Workplace

Regional Office Space

12sm-18sm

Typical Square Meters per employee (includes office square footage for employees and contractors).

Regional HQ Office Space

10sm-15sm

Typical Square Meters per employee (includes office square footage for employees and contractors).

Istanbul market is behind.

Desk Sharing

Desk-sharing is not a common practice in the market.

Urbanization of the workforce is: A major factor driving location decisions

Landlord Concessions

Fit-Out Concession

The Landlord typically does not provide a contribution or concession to fit-out as a part of the lease transaction.

Rent-Free Period

The Landlord typically does not provide a rent-free period in addition to the fit-out contribution.

Lease Provisions

Lease Term

3yrs.-5yrs.

Typical lease term in years.

Operating Expenses & Service Charges Included

Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Service Charge Notes:

Landlords usually don't provide common area management services for industrial properties unless it is an organized industrial park. Tenants are responsible of their own premises for all stand-alone buildings.

Lease Timeline: The following apply to both office and industrial leases.

Lease Execution Requirements:

Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable

Requirements Notes:

3-6 months rent upfront + 1-3 months rent security deposit in cash or bank guarantee

Negotiated Subletting/Assignment

Typically, the tenant's right to sublease or assign the space is negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent IS still required.

Negotiated Subletting/Assignment Notes:

Sublease to group companies without landlord's consent and to third parties with written approval is pretty standard

Statutory Subletting/Assignment

This IS a statutory right.
Landlord Consent: The Landlord's consent is still required.

Blend & Extend Strategies

Typically, a tenant can take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Statutory Early Termination

This is NOT a statutory termination right.

Negotiated Early Termination

It IS typical for tenants to be able to negotiate an early termination right in the lease agreement.

Early Termination Notes:

Typical market practice is the ability to terminate after the third year with 6 months prior notice for 5-year lease contracts.

Statutory early termination: contractual only and term can vary for different landlords and deals

Typical costs: none if terminated according to lease contract

Obligations Upon Lease Expiration

Basic broom clean condition and removal of special installations.
Dilapidations.
Complete restoration to shell.
Other

Tenant Obligation Notes:

Based on the lease, reinstatement costs may apply

Section 1. Fit Cost Data

Section 2. Scope of Work Description

Business Climate Business Climate data provided in partnership with Hickey & Associates. Rankings reported on a scale of 1 (least favorable) to 10 (most favorable). Please refer to the full report Explore 2017 for additional details.

Incentives and Labor Market

7, 3 7/10

Incentives
Value potential, diversity/number of programs

8, 2 8/10

Job Saturation
Competition for workers

7, 3 7/10

Wage Inflation
Rise in wages (past 10 years, local currency)

Educational Attainment

8, 2 8/10

HS Ed Eq
Proportion of population attaining this level

8, 2 8/10

University Ed
Proportion of population attaining this level

8, 2 8/10

Overall
Composite average of HS Ed Eq & University

Composite

8, 2 8/10

Additive sum of incentives, saturation, overall ed attainment, and wage inflation

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