Office space in Australia’s capital cities is traditionally tight. Tight markets make it difficult for businesses to grow or for new businesses to find space, which makes an office relocation a real challenge. But according to the Property Council of Australia’s Office Market Report for January 2020, the outlook is changing.
Net tenant demand in Sydney and Melbourne fell in the six months to February 2020, while both Sydney and Melbourne will see significant increases in office space as 2020 unfolds. In Melbourne, close to 400,000sqm of new supply will come to market. Sydney should see an increase of 250,000sqm over the next two years. This is consequently a good time to think about an office relocation.
But if you are thinking of taking advantage of new office space, be warned that traditional values and principles of lease negotiation are changing. Many commercial leases come with face rents and incentives – the rent’s high but the tenant gets an incentive such as a fit-out allowance in return.
This is just one reason why good office lease selection and fit-out advice is important. If you’re embarking on an office move or searching for a new business home, be aware of pitfalls and negotiate your next lease wisely.
Here are 10 points to consider as you plan - essential tips for avoiding a relocation disaster.