Melbourne is an excellent option if you are thinking of starting a business. For one, its population is growing faster than Sydney, which means that your client base is also constantly expanding. The city is also business-friendly as it offers several incentives to help small organisations grow their industries. Melbourne has an R&D tax incentive, early-stage innovation incentive, and an innovation fund that startups can access. Read the article about Budget for Your Office in Melbourne.
However, one of your challenges when starting your business is where to locate your address and how to set up your custom office in Melbourne. Another burning question is how much budget should you raise for your office.
How Much to Lease an Office in Melbourne?
Multiple factors will affect the rental space. But to give you an idea of how much your budget might be, here is the estimated cost:
- For premium spaces, you are looking at around $800 per square metre.
- An A-grade office space, the estimated cost of the lease is $641 per square metre.
- A B-grade commercial space will fetch around $500 per square metre.
There are several advantages if you find an office space to start your company in Melbourne right now. For example, the city has raised its incentives and subsidies to as much as 35% right now, in light of the pandemic.
For example, the lease amount for the premium space is now down to around $500 per square metre while the B-grade office will now cost around $380 per square metre. Also, vacancies are as high as ever, so the bargaining power shifts to the customer.
Factors that Affect Commercial Lease Cost
You also need to be aware of the factors that may impact the value of office rental.
- Location – It makes sense for offices in the central business district to be more expensive compared to the fringes.
- The size of the space is material to the total monthly lease for your office since the rate is computed per square metre.
- Public transportation access will hike the value of commercial property. The advantage is you save a lot on gas expenses as you can leave your vehicle and take the train or bus instead.
- Access to amenities – You can expect higher rates if your office is near restaurants, a shopping mall, grocery stores, coffee shops, and other conveniences.
Ancillary Expenses
When you are starting a business, the office rental is considered recurring cost, along with utilities and wages. But you also have to consider the associated costs such as processing your permits and licenses, legal fees, and other documents.
Then you also have to think about our furniture. For example, an ergonomic chair will cost from $150 to $400 each. The total number will depend on how many workstations you have. A boardroom table will set you back at least $400, excluding the chairs. Then you have to think about carpeting, decorations, and office supplies and your expenses quickly rack up.
Fortunately, you can hire a local team that can help you prepare the office and make it move-in ready. If you already have found the space, they can still help set up your custom office in Melbourne so that you do not have to worry about the design, layout, and furniture. Finally, they can work within your budget, which is crucial for a small business trying to stretch its capitalization fund to maximise profits.
