What are outgoings in a commercial lease?
Outgoings are the running costs of a commercial building that the tenant pays on top of the rent: rates, building insurance, water and similar costs, and under most New Zealand leases the property management fee too. The lease lists exactly which costs count.
We run the outgoings budget and the yearly reconciliation for every property we manage. See commercial property management.
Auckland industrial
$33
About, per square metre a year, the average outgoings across 74 properties, up 6.6% in a year.
Auckland office
$137
Per square metre a year, the average across 51 buildings, up 6.8% in a year.
Rates
Almost half
Of industrial outgoings, the largest single cost.
Source: Bayleys, The outlook for outgoings, citing its October 2025 office and February 2026 industrial outgoings reports. Checked 25 October 2026.
Costs usually treated as outgoings.
- RatesCouncil rates and charges, usually the biggest outgoing
- Building insuranceThe premiums for insuring the building
- Water and rubbishWhere they are charged to the property rather than the tenant directly
- Building warrant of fitnessInspections and the yearly warrant, where the building needs one
- Shared areasCleaning, lighting and upkeep of areas tenants share
- Property management feeUnder most leases, yes
The exact list is in each lease. Management fee: AssetPro, How much does commercial property management cost in New Zealand. Checked 25 October 2026.
Costs the owner usually keeps.
- Capital costsReplacing building services, a new roof, structural work
- Building Act upgradesBringing the building up to the current rules
- The owner's own costsMortgage interest, the owner's accountant and lawyer
Budget, monthly payments, reconciliation.
- 1A budget for the year. The owner estimates the year's outgoings and each tenant's share.
- 2Monthly payments. The tenant pays a twelfth of their share with the rent each month.
- 3The reconciliation. After the year, the real costs are added up and the difference is charged or refunded.
What the newest standard lease changed.
The standard New Zealand commercial lease is now in its seventh edition. According to a summary from law firm Simpson Grierson:
- Tenants pay only for increases driven by their use, and owners carry capital costs
- Owners must give an outgoings budget every year
- Outgoings must be reconciled within 24 months, or older costs may not be recoverable
- Body corporate management fees are their own line, and the tenant's share can be limited
Leases signed on earlier editions keep their own wording, so check which edition yours is.
What owners ask about outgoings.
The running costs of the building that the tenant pays on top of the rent, such as rates, building insurance, water, maintenance of shared areas and, under most leases, the property management fee. The lease lists exactly which costs count.
Under most New Zealand commercial leases, yes, so the tenant pays it back to the owner. Check your lease to be sure.
Usually not. Replacing building services or upgrading the building to meet the Building Act are generally the owner's cost, not an outgoing.
Usually the tenant pays a monthly estimate based on a yearly budget. After the year ends, the real costs are added up and the difference is charged or refunded. That is the reconciliation.
Under the seventh edition of the standard lease, the owner must give a budget every year and reconcile within 24 months, or risk not recovering older outgoings. Body corporate management fees are a separate line, and the tenant's share of them can be limited.
Want the outgoings handled?
We run the budget, the monthly invoices and the reconciliation, for 7% plus GST with no minimum fee.