Office leasing glossary
The terms every tenant should know before signing — explained simply.
- Net Leasable Area (NLA)NLA
- The usable area the tenant occupies and pays for, excluding columns and service shafts. Rent is charged on this figure.
- Gross Floor Area (GFA)GFA
- Total constructed floor area including corridors, lobbies and service zones. Always larger than the net area.
- Efficiency / Loss factor
- The ratio of net to gross area. A higher efficiency means the tenant pays for more usable space.
- Net rent
- The base rent, usually quoted in USD/m²/month, EXCLUDING the service charge and VAT.
- Service charge
- Covers building operation: common-area electricity, cleaning, security, reception and shared HVAC. Charged per m²/month, separate from rent.
- VAT
- Value-added tax of 8–10% added on top of rent and service charge. Factor it into your true total cost.
- Deposit
- A security deposit, typically equal to 3 months' rent, refundable at lease end if there are no outstanding issues.
- Lease term
- The contract length, commonly 2–5 years for Grade A/B offices. Longer terms often secure a better rate.
- Rent-free / fit-out period
- Days or months of free rent granted for tenant fit-out before operations begin — a key negotiation lever.
- Rent escalation
- The agreed periodic rent increase written into the lease, commonly 5–10% per year or per renewal.
- Building grade (A/B/C)
- Classification by location, build quality, amenities and management. Grade A is the most premium and most expensive.
- After-hours HVAC
- Air-conditioning cost incurred for work outside office hours or on weekends, billed separately by the hour.
- Parking fee
- Car and motorbike parking fees, charged in VND per slot per month, usually separate from rent.
- Lease agreement & annexes
- The binding legal document setting out both parties' rights and obligations, with annexes on area, price and handover condition.