Are you in the market for a new office space for your business? Choosing the right location, size, style and fit-out for your office is a huge decision. However, before you start picking paint colours and measuring up for new desks, you need to figure out which office option is right for you.
Will you purchase a commercial office space to become an owner-occupier? Rent office space with a 3-5 year term? Choose a fully furnished serviced office so you can plug in your laptop and get to work? Maybe you would prefer to work from the comfort of your own home with a virtual office giving your business the professional veneer it needs? All of these options have their pros and cons. Let’s take a look at them:
Purchase A Commercial Property
In a country where owning your own home has always been considered the great dream and the phrase “rent money is dead money” is bandied about frequently, a surprisingly small percentage of businesses own their premises. This is primarily due to the perception that purchasing commercial property is way too expensive. However, the higher upfront costs are balanced out by a host of benefits.
While this stereotype is often true, that is not always the case. Buying office space can be surprisingly affordable – particularly when compared to the soaring residential housing prices in Australia’s capital cities. MCO has office suites for sale in Melbourne for a mere fraction of the amount of an inner-city apartment. Many people don’t realise that the mortgage for a commercial space can frequently be lower than the cost of a lease, with the considerable bonus of having an asset that can appreciate over time and is available if you need to liquidate some cash.
Additionally, numerous other benefits come with owning an office:
- Stable Finance: Many firms choose to lock in their commercial loan at a fixed rate, offering enhanced financial stability for the investment.
- Tax Advantages: When tax time rolls around, being an owner-occupier also allows you to write off depreciation and expenses.
- You’re In Control: Of course, one of the biggest perks is that you are 100% in control – you can design the space to suit, rent out a portion for extra income, and no one will be able to evict you at the end of your lease.
Of course, purchasing a property may not be the right option for everyone. if you have minimal working capital, foresee a need to move your office location or want the ability to quickly and easily scale the size of your premises up and down as required, the time may not be right to buy.
Lease A Commercial Property
Some companies choose to rent office space on a one-to-five-year contract, however, longer contracts are extremely common. Leasing a property may give you access to a premium location or features like parking and storage that are otherwise unobtainable. With your office space being the public face that you present to the world and the team environment that you operate and thrive in on a day-to-day basis, finding something that reflects your company is vital.
By choosing your office carefully, you can also cultivate valuable relationships with other businesses within the building. MCO has office spaces for lease which offer professional business centres on-site and a wide range of on-site facilities such as cafes and gyms. Many options also allow you to upgrade to a larger space with minimal relocation costs.
Renting a space can be helpful to free up working capital for use in other areas of the business. The flip side is the lack of equity and the variable costs. You should also ensure that you understand the total occupancy cost before signing a contract. Lease clauses can vary dramatically with no industry standards to protect the tenant in a commercial agreement. For example, if the contract stipulates that you need to pay the land tax, council rates and water connection rates, rent of $5000 a month can quickly escalate to around $8000 a month.
If you are looking to lease, an MCO agent can help you secure the perfect property with leasing terms to suit your needs.
Serviced or Virtual Offices
In the context of remote workers, global businesses and flexible work options, you may decide a virtual or serviced office is your best option. It delivers ultimate flexibility for start-ups, small businesses with staff who are frequently on the road, and regional companies who want a prominent city address and polished meeting space.
Typically, serviced offices cater for teams of up to 15 people and are all set up and ready for you to walk in, plugin, and get started. One of the attractive features is the lack of lock-in contracts and the ability to scale your business as you grow. They also give your organisation a high professional standard of administrative support, handling your phone calls and mail efficiently whether you are in the office or not.
If you don’t need daily office space but want to take advantage of the professional receptionist, address and fancy boardrooms, you may find that a virtual office is your perfect solution.
MCO’s sister company APSO, offers enviable serviced and virtual office locations in Melbourne, Brisbane and Adelaide to give your business the address to impress. Whether you’re lookin for the prestigious air of the Exchange Tower in the heart of the business and legal district in Melbourne or the creative buzz of the Watson in Adelaide, there are options to enhance your business image.