What to Consider When Choosing an Office Space in Australia

Signing a lease can feel like bringing home a shiny new gadget – exciting, full of promise, and occasionally cursed with hidden costs that only reveal themselves after the packaging hits the recycling bin. Before you put pen to paper, here’s how to avoid the commercial real estate equivalent of buyer’s remorse. 😊

Key Takeaways

• Start with head-count forecasting – space that’s perfect today can be cramped (or cavernous) tomorrow.
• Location still matters: CBD vacancy sits at 12.8 %, but Melbourne’s reaches 18 %, so bargains – and empty lobbies – abound.
• Budget beyond rent: fit-out, make-good and outgoings can add 20 – 30 % to the sticker price.
• Check compliance: Safe design guidelines recommend ~6 m² per employee, plus breakout space.
• Future-proof with flexibility: Australia’s co-working market is growing at 23.6 % CAGR, so short leases and swing-space are no joke.

Know Your People & Culture Needs

First, decide how many desks you’ll actually need – not how many your ego says you need. Hybrid rosters, job sharing and Friday-WFH habits can shrink required floor plates by up to 30 %. A smaller space with better amenities often beats an empty acreage that echoes like a cave.

Remember, flexible space isn’t just for start-ups; corporations now treat co-working passes like gym memberships, scaling usage up or down as projects wax and wane.

Location, Location (and Transport) Location

The national CBD vacancy rate sits at a chunky 12.8 %, handing tenants more negotiating muscle than a body-builder in protein powder season. Sydney’s north-west corridor tempts with rent discounts, while Melbourne’s 18 % vacancy might score you harbour-view pricing without the harbour.

“A prestigious address won’t fix a toxic culture – but a terrible address will definitely break a great one.”

Weigh up public transport, bike end-of-trip facilities, and whether your clients will forgive a 30-minute tram ride because your barista serves single-origin magic. 🚀

Space, Layout & WHS Compliance

Safe Work Australia guidelines steer you toward roughly 6 m² per seated worker, plus circulation paths wide enough to avoid awkward chair jousting. Factor in quiet rooms, collaboration hubs and the “Friday town-hall” all-hands without resembling a sardine tin.

Costs & Hidden Expenses

Base rent tells only part of the story – Sydney’s prime gross face rent averages AU $1,564 per m² a year, but the extras can sting.

• Fit-out & furniture: from phone booths to pot-plants, allow AU $800–$1,200 per m².
• Outgoings: council rates, cleaning, insurance – all the fun stuff your landlord forgot to mention.
• Make-good clauses: returning the space to a “broom-swept condition” can cost more than the broom.
• Incentives vs amortisation: free rent months often hide in higher face rents – do the maths.
• IT infrastructure: redundant fibre and UPS install fees rarely come with a bow on top.

Sustainability, Wellness & Future-Proofing

Green Star-rated buildings cut operating costs and impress eco-conscious staff who measure their carbon footprints like step counts. Certifications target energy, indoor environment quality and resilience – all good for the planet and your brand halo.

Look for fresh-air ventilation, circadian lighting and end-of-trip showers which, incidentally, also help everyone survive Melbourne’s surprise summer downpours.

Conclusion

Choosing office space is equal parts head and heart: spreadsheet smarts meet gut instinct on vibe. Do your due diligence, run the numbers (twice), and tour enough buildings to develop an allergy to fluorescent-lit basements.

References

1. Property Council of Australia – Office Market Report
2. The Australian – “Acres of new offices on offer, but Melbourne’s not interested”
3. Knight Frank – Sydney CBD Office Market H1 2025
4. OHS Reps – “Office Space: minimum 6 m² per person recommendation”
5. Nextmsc – Australia Co-Working Space Market Analysis 2024–2030
6. Green Building Council of Australia – “Exploring Green Star”