Working from the comfort of your home office, coffee always within reach, might feel like the dream. But what happens when your business starts to outgrow your spare room (and your sanity)? If you’re tripping over filing cabinets or holding client meetings at your kitchen table, it might be time to consider a commercial space. 🏢 Let’s unpack when it’s really time to make the move – and how to do it smartly.
Key Takeaways
- Growth Signs: Increased team size, stock overflow, and client perceptions are clear signals you’re ready for a bigger base.
- Costs Matter: Commercial rent varies – prime CBD office space averages around $718 per sqm (Knight Frank, 2025).
- Tax Implications: Moving out impacts your home office deductions but opens new business claim opportunities (ATO, 2025).
- WHS Compliance: Commercial spaces must meet Safe Work Australia standards, from lighting to accessibility.
- Options Galore: From coworking desks to long-term leases, there’s a solution for every business stage.
Signs You’ve Outgrown the Home Office
It’s not just about feeling squashed between the kids’ toys and your printer. Common signs include:
- Hiring Spree: Bringing in your first (or fifth) employee? You’ll need more room than your dining nook can offer.
- Client Credibility: First impressions matter. Meeting clients on Zoom with your laundry in the background? Not ideal.
- Stock and Storage Sprawl: When your stockroom doubles as your garage – it’s time.
- WHS Concerns: Home setups often fall short of workplace safety requirements. Think safe ventilation, ergonomic setups, and emergency exits (Safe Work Australia, 2025).
“There’s a fine line between ‘cosy home office’ and ‘I’m filming an episode of Hoarders.” – Every small business owner, ever.
Crunching the Numbers: Home Office vs Commercial Space
Commercial leases might seem pricey, but let’s break it down:
- Office Rent: Prime CBD offices in cities like Melbourne average $718 per square metre (Knight Frank, 2025).
- Coworking Options: Shared spaces are growing fast – the Australian coworking market is set to reach USD 867.5 million by 2030 (NextMSC, 2024).
- Hidden Extras: Beyond rent, budget for fit-outs, internet, parking, and public liability insurance. It’s a bit like buying a car – the sticker price is just the start!
Pro tip: Smaller businesses can save by sub-leasing or opting for serviced offices – stylish and less admin fuss. 🖥️
Lease Types & Space Options to Consider
Australia offers a smorgasbord of office setups:
- Coworking Spaces: Flexible and perfect for networking, but can get noisy if you’re not a fan of communal kitchens.
- Serviced Offices: All-in-one with receptionists, utilities, and coffee machines that actually work.
- Sub-Leases: Shorter, cheaper leases – good for commitment-phobes.
- Traditional Leases: Longer (typically 3–5 years), but often better value per square metre for established businesses.
Financial, Tax, and Legal Considerations
Moving out of your home setup isn’t just physical – it’s financial too. Here’s what to know:
- Tax Changes: You may lose your cosy home office deductions, but can now deduct commercial rent, fit-outs, and running costs (ATO, 2025).
- GST & Land Tax: Be mindful of the additional costs associated with commercial properties.
- Zoning Laws: Make sure the space is zoned correctly for your business activities to avoid council headaches.
Moving Made Easy: Your 6-Step Checklist
- Define Needs: List must-haves (location, size, amenities).
- Budget Wisely: Know your numbers, including rent + hidden costs.
- Scout Spaces: Online listings are fine – but always inspect in person.
- Negotiate: Everything is negotiable, from lease term to fit-out contributions.
- Prepare IT & Furniture: Don’t underestimate how long it takes to set up internet!
- Announce the Move: Let clients, suppliers, and the postman know where you’re headed.
Conclusion
Deciding to leave the home office can feel like waving goodbye to your favourite old slippers – comfortable but a little too well-worn. However, growing pains signal progress. Whether you opt for a coworking hub or a private space to call your own, moving into a commercial office can boost credibility, productivity, and morale (yours and your team’s!). 🚀
References
- Australian Bureau of Statistics (2024), Working Arrangements, ABS.gov.au
- CEDA Work From Home Study Insights
- Knight Frank (2025), Melbourne CBD Office Market Q4 Report
- NextMSC (2024), Australia Coworking Space Market 2024–30 Report
- Australian Tax Office (2025), Property Used in Running a Business
- Safe Work Australia (2025), Managing the Work Environment and Facilities Code
