I’ve been asked a lot over the years about commercial leases and how they actually work, so I thought I’d share some knowledge and experiences.
One of the biggest challenges in growing your business is making the move from working at home into working from commercial premises.
When the realisation hits that you have outgrown the home office either because of staff, image or the physical space simply doesn’t work for you anymore, the hurdles of a commercial lease can be overwhelming.
The advantages are numerous, but the commitment to a long term lease, usually 3+ years, fit out and furniture, phone and internet contracts, bonds, bank guarantees and legal costs make the process daunting and full of risk.
Then once you sign on the dotted line the rent and outgoings invoices keep coming month after month despite how well you are trading.
And any short cuts taken in finding commercial space – such as not getting a commercial solicitor to look over your lease – can often have major consequences. Look what happened in the Noosaville industrial area recently and the time the owners spent on non-revenue producing matters>> Noosaville Industrial Estate Problems
It’s no wonder that Serviced Offices and Coworking spaces are so popular around the world at the moment.
With easy to enter and exit agreements, low costs ($12 a day for Coworking), professional environment and being surrounded by like minded people, a Serviced Office or Coworking desk will give you the professional premises without the costs and risk of a regular commercial lease.
The tables below are a general comparison of a Commercial Lease v Shared Office space such as Noosa Boardroom.
A bare bones commercial lease in Noosa is around $2,500 per month without receptionist and phone support, office equipment, kitchen and bathroom supplies and good coffee. Plus there are the set up costs such as fit out, furniture, signage and personal bank guarantees and bonds.
A Serviced Office at Noosa Boardroom on a month to month agreement start at $1,700 per month.
If you want to learn more about our office space and how it may work for you, please feel free to call in to Noosa Boardroom for a chat and see for yourself.
07 5430 6666
0400 028 134
COMPARE A COMMERCIAL LEASE V SERVICED OFFICE
Commercial Lease – rent and outgoings over 3 years = $96,000+ on fixed 3 year lease
Serviced Office – month to month agreement over 3 years = $65,000
|The Essentials – Commercial Lease||Approx cost per month|
|Lease – small office @ $400 p/sqm
Usually min 3 year lease
|Outgoings @ $70 p/sqm||$ 350|
|Phone line rental||$ 50|
|Internet plan||$ 70|
|Approximate total per month||$2,670|
|Operational Expenses – Commercial Lease||Approx cost per month|
|Secretary/Office Assistant||$2,500 – $3,500|
|Office equipment rentals and stationery
|Kitchen and bathroom supplies||$ 100|
|Maintenance, security and||$ 50|
|Approximate total per month||$2,900 – $3,850|
|Start up and Set Up Costs – Commercial Lease||Approx cost per month|
|Bank Guarantee for landlord (3 months rent)||$ 5,000|
|Furniture||$ 1,000 – $5,000|
|Landline phone and installation||$ 300+|
|Fit out (partitions, painting, IT and phone cabling, signage etc)||$10,000+|
|Approximate total of start up costs||$16,000 – $20,000|