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.

Steve Lawrence
General Manager
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

versus

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
$2,000
Outgoings @ $70 p/sqm $   350
Electricity $   150
Phone line rental $     50
Internet plan $     70
Insurance $     50
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
(scanners/copiers/coffee machine)
$   200
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