How Much Does It Cost to Lease a Commercial Office
Renting an office space for your business is a very exciting and important step in seeing your business grow. It’s also a process that can be filled with a lot of uncertainty and risk. Your commercial rent is likely to be one of your largest expenses as a business.
There are many factors that will contribute to the cost of your office space; location, amenities, type of building and more. There is no one definitive price guide, because there are so many things to consider for your personal circumstances.
Here we offer a general idea for your potential expenses when renting a commercial office.
When leasing an office space there are many different things that will impact your rental rates, including;
Size – commercial real estate is calculated as a dollar rate per square metre, so the size of your office will impact the base rent you will be paying.
Location – if you want to lease an office in the Sydney CBD, it is going to be significantly more expensive than an outer suburb in a different city. Your location will have a big impact on your business, so it’s important that you don’t compromise here.
Building grade – Australian office buildings are categorised as Premium, A-Grade, B-Grade and C-Grade. Premium will be the most expensive, with the highest quality. C-Grade will typically be an older, and lower quality building. You should choose a building that fulfils your needs, and will represent your brand well.
Finding a commercial property that is within your rental budget can be tricky, but it’s important not to compromise too much, and end up in the space that doesn’t suit you or help you grow.
Additional Costs to Rent
While rent may be your largest cost to consider, don’t forget about all the other things. Small costs like your daily coffee may seem insignificant at first, but it all ends up adding up to the costs of running your office.
These are just some of the typical additional costs to leasing a commercial office;
Outgoings – depending on your lease terms, your outgoings may be rent inclusive, or you may have to pay them on top of your rent. Outgoings include things such as council rates and body corporate fees.
Electricity bills – having an office with air conditioning can be a lifesaver, but the electricity bill quickly begins to add up, especially with the amount of technology you might need to keep on to run your business
Water usage – like electricity, many commercial tenants have to pay for their own water bill, which can become quite expensive
Insurance – having insurance to protect you and your business in the event of disaster or other occurrences is important, but it is also another cost to add to the now growing list
How Englander Principal Can Help You
As all the ongoing costs of leasing an office begin to add up, it can start to become a bit overwhelming. For some small businesses, they might not even be able to afford to move into the space they need to grow.
So, would a rent free period help you grow?
At Englander Principal, we specialise in brokering commercial tenants for office spaces. We help negotiate the best terms for your new commercial lease, helping you free up your cash flow and reinvest back into your business.
Office leasing can be expensive, especially if you’re a small business still trying to grow. We work on a No Win, No Fee basis, so you have nothing to lose when you consult with us.
Winning means that you get a rent free period, rent in half or an equivalent, whatever we agree on prior to negotiations starting.
If you’re looking to renew your commercial lease, or move into a new office, we’re the people you need to be talking to!
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