When you’re looking at different commercial properties in Australia, you’re probably looking for offices, industrial or retail, right?
Keep in mind that there are different types of properties within each category. Let’s explore each one in a little more detail.
Commercial offices come in many shapes and sizes. But there’s also a variety of ways you can set yourself up.
Put simply, this is your more traditional office. While we say ‘standalone’, the space may actually sit within a building with other offices and tenants. But, apart from a common lobby or lift, there’s usually no other shared areas or services. You pay for and are responsible for the whole space.
The standard contract term for standalone offices is between 3-5 years, but this may be negotiated with the landlord.
Contiguous space refers to a number of suites/floors that are rented to the same tenant. This may include
Co-working offices are popular. This is because they require less long-term commitment and offer more flexibility, particularly for those in uncertain job markets or volatile industries. For instance, members only pay for what they use. That is, you can rent the number of desks you need, or you can even ‘hot-desk’. Desks can be rented permanently or even by the hour.
Serviced offices come with everything you need – sometimes even staff! You move in and most (if not all) of the systems you need to do business are ready to go.
One of the key features of both serviced offices and coworking spaces is that the rental fee is all-inclusive, meaning there are no separate outgoings charges. For this reason, the cost of using these types of offices is usually considered to be transparent and predictable, with businesses paying a fixed amount for all of the services and amenities they need.
Contract lengths for serviced offices vary, but many tenants opt for month-to-month.
Sublet office space is when part or all of a commercial office space is sublet to another business. In the case of a sublease, the sublessee treats the sublessor as their landlord. In turn, the sublessor assumes liability on behalf of the sublessee. It’s a great way to lease traditional office space without being locked into a long-term lease or having to invest in extensive internal fit-outs.
Read more about the pros and cons of subleasing.
A lease assignment is a transfer of a lease from one tenant (assignor) to another (assignee) for the remainder of the assignor's lease term. In other words, the original tenant assigns their rights and obligations under the lease to a new tenant, who takes over the lease and becomes responsible for paying rent, maintaining the premises, and complying with all other terms and conditions of the lease.
A lease assignment typically occurs when a tenant is looking to exit their lease and, instead of surrendering, finds a new tenant to take over the lease. In some cases, the landlord may also agree to a lease assignment if it benefits them, such as if the new tenant has a stronger financial position or is better suited to the property.
Your industrial property requirements will generally depend on the size of your business and the operation you’re running.
Simple sheds are at the smaller end of the scale. They’ll usually be a single or double storey space, with an area sectioned off as a small office. With less storage area, the smaller industrial properties serve more purpose as a workspace (such as for mechanics or repair businesses).
Warehouses are larger in size and are often used by manufacturing companies. There’s an emphasis on storage space. You can obviously get things in and out of a warehouse, but they generally won’t offer loading docks like the larger logistics buildings.
Large scale logistics buildings are usually set up as distribution centres. You wouldn’t necessarily use them for manufacturing, as its more about storing and distributing goods. These types of buildings are usually used for fast moving consumer goods (e.g. Amazon warehouse, household goods, etc.) and generally feature a loading dock/bay, where trucks can be loaded and unloaded.
Much like offices and industrial sites, retail spaces come in all shapes and sizes. From boutique cafes to department stores, there’s something for everyone in retail.
Depending on the location, you’ll generally pay a little more for a retail site within a shopping centre. On the plus side, it’s already an established shopping area with plenty of foot traffic. However, shopping centres may have rules around the types of retail stores they are willing to work with and how you can set yourself up.
A regular street retail site gives you a little more freedom than a shopping centre. However, depending on the location, you may not enjoy as much foot traffic as you might within a shopping centre. You’ll still need to consider fit-out and whether the space suits your needs. But you’ll generally have more freedom than you would inside a shopping centre.
Also known as a superstore, supercenter or megastore, a big-box store is a sizeable, free-standing building with a large carpark. The large square meterage provides the space to showcase a substantial amount of stock - think IKEA, Bunnings, Mitre 10 and Decathlon.
Sometimes in these large shopping centres, the landlord will put a profit share agreement in place. Here, the tenant pays a base rent and, once a certain profit margin is reached, the landlord receives a percentage of the tenant's gross sales on top.
Not sure exactly what kind of commercial property you need for your business? Contact our team today for professional advice to find the perfect type of commercial property for your business.
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