Category: Office

How to Find A Commercial Property for Rent

If you’re in the market to find a commercial property for rent it can feel overwhelming – especially if you’re not a commercial property expert. By educating yourself before you begin to look for a property, you’ll reduce your vulnerability to misleading sales tactics and undesirable lease agreements, resulting in a better outcome for your business.

Therefore, we’ve put together a foolproof guide with tips and tricks to help you become better informed on finding the best commercial rental in Perth.

Plan Ahead

The less time you allow yourself to research and find a commercial property to rent, the more pressure you’re putting on yourself find the perfect lease. This will decrease your negotiating power and increase the likelihood of a rushed decision.

We recommend planning 6 months in advance and giving yourself plenty of time before you need to sign on the dotted line. The more time you have ahead of the crunch increases your flexibility and puts you in a better negotiating position. You’ll be more aggressive when negotiating lease agreements and may even get a rent reduction.

This planning time will help you be more informed on what spaces are available and how the commercial rentals you’re considering compare to others on the market. You can also speak to your colleagues about what considerations they have for the new space. You may need a bigger office, a larger air conditioning system, or a fixed boardroom or meeting space. Making time for colleague input will ensure team members are also happy with the transition. 

What Can You Afford?

Before you consider looking for a new commercial rental, it’s important to have a sound understanding of what rent you can afford to pay over the course of the lease. It’s smart to set a strict budget, as we often tend to push beyond our limits when we see something we love. Sticking to the budget will ensure you reduce placing yourself in a rocky financial situation by committing to something you can’t afford.

3 forge st
Commercial property for lease in Welshpool

Review The Property Market

Keeping an eye on the property market will mean you have the opportunity to jump on a fantastic opening if it arises and the market drops. By having this leverage, you could save yourself thousands of dollars in rent.

By keeping an eye on the websites of commercial real estate agents, you will be able to see what properties have been sitting on the market for the longest duration. Giving you the opportunity to negotiate better terms for your lease.

What Do You Need to Consider?

Now you have assessed the commercial rental market, it’s time to consider what you need from your new property.

Here are our top tips on what you should look out for.

What features are essential?

Consider factors including:

  • High ceilings
  • Office space
  • Kitchen
  • Male and female toilets
  • Lunch or break out room
  • Server room
  • Stationery and printer storage
  • Meeting space or boardroom

Finding The Best Deal

The newest commercial rentals will sit at the top of commercial real estate websites, but sometimes agents will pay to move old listings to the top. To ensure you have a solid understanding of which properties have been on the market for the longest time, head to the commercial real estate agents website to find their list of commercial properties and head to the back of the list.

The oldest listings will often provide the most value when it comes to negotiating. If the property hasn’t sold it may be due to a number of reasons, such as price or location. If one of these listings suits your requirements, you may be able to negotiate a better deal.

One of the main criteria commercial real estate is valued on is features. Generally speaking, the more features a property has, the higher the rental price will be. If you have a sound understanding of which commercial property features are and are not valuable to you ahead of negotiating, you may be able to lease the property at a lower rate. If you do not require a property with extended office space for example, you can work with the real estate agent to negotiate down the premium placed on this feature.

Warehouse for lease in Kewdale

Be In The Know

By subscribing to email lists of agents leasing commercial properties in Perth, you will be the first to know when a new listing appears on the market and have the opportunity to be the first to view it. This means you lower the chance of having any competition to lease the property, resulting in better negotiating terms for the lease.

Consult a Commercial Property Expert

If you’re still feeling overwhelmed with the process, speak to the local commercial real estate experts at Ross Scarfone Real Estate. We specialise in commercial and industrial buildings for lease in Perth’s south-east corridor of Belmont, Welshpool, Kewdale and surrounds. You can view our entire list of properties to lease and request a tour of the available commercial rental properties in the area.


Belmont Commercial Real Estate: Lease Guide

Belmont is one of the most centrally located commercial property areas in Perth. It’s perfectly situated between Perth CBD and Perth Airport and bordered by main highways that can quickly transport large freight, as well as make for an easy commute for staff.   

Belmont is a popular location for many Perth offices and warehouses for lease because, compared to Perth’s other industrial areas, travel and distribution times are very quick and direct. It won’t take you long to get onto a highway heading in any direction in WA. Great Eastern Highway and Canning Highway run from eastern WA, past Perth Airport and straight through to Fremantle Port, as does Leach Highway.

belmont commercial real estate
Belmont commercial real estate

Belmont’s commercial real estate for lease is primarily warehouses, offices and office warehouses, catering to a range of industrial and commercial businesses. As a light industrial area, Belmont can accommodate heavy machinery and trucks, and Belmont’s growing residential, retail and office real estate are fueling population growth.

Here’s the commercial real estate available in Belmont and why you should consider Belmont for your next commercial lease.

Warehouses for Lease in Belmont

Belmont’s warehouses for lease range from huge industrial properties of over 2,000 square metres to tidy little office warehouses less than 500 square metres. Belmont has been a prime commercial property location for decades which means you’ll be able to find older properties from the 80s that have been refurbished up to recent constructions will all the modern facilities. This variation means, no matter what your budget or requirements, Belmont will usually have a warehouse to suit your needs.

Warehouse for lease in Belmont

Why lease a warehouse in Belmont?

As the most centrally located industrial area in Perth for the airport, freight rail line and CBD, Belmont offers increased efficiency for delivery of goods and access to other industrial supplies. Leasing a warehouse in Belmont puts your business minutes from Perth city, Perth Airport and freight rail lines.

Belmont’s wide freeways and truck-friendly intersections are designed to support Belmont’s position as one of Perth’s most industrial areas. The City of Belmont is committed to maintaining Belmont as one of Perth’s most productive areas. This means ongoing improvements to infrastructure to support the area.

Offices for Lease in Belmont

Offices for lease in Belmont are located just across the river from Perth CBD and are mostly situated in modern office complexes or attached to a warehouse property. Belmont is one of Perth’s most commercial areas and in recent years has shifted from predominately industrial to mixed business with the construction of several large office complexes and businesses hubs within the suburb.

Office for lease in Belmont

Why lease an office in Belmont?

Offices in Belmont are strategically placed to offer services to Belmont’s industrial area, Perth city, Victoria Park and Perth’s south-east. There are over 3,500 businesses within the City of Belmont, making it one of Perth’s busiest commercial hubs.

Travelling to the office or out to visit clients is made easy by main highways providing access to all of Perth. The City of Belmont also provides a free shuttle service for workers from Belmont Forum to their offices in Belmont Business Park.

The upcoming construction of the Forrestfield-Airport Link, due in 2021, will connect Perth Airport and the Perth foothills to Perth city via a railway station in Belmont, adding to Belmont’s strategic location and commercial value.

The recent retail and apartment developments along Great Eastern Highway and the redevelopment of Belmont Shopping Centre has increased the residential population of Belmont as well as the need for professional services.

Office Warehouses for Lease in Belmont

Due to Belmont’s strategic location as a business hub and an ideal distribution and logistics site, many of the commercial properties in Belmont are office warehouses. Office warehouses in Belmont vary is size and configuration, allowing you to choose a commercial property that suits your business, whether that’s a larger warehouse and small office, or vice versa.

Belmont office warehouse for lease

Some office warehouses in Belmont include a showroom to display your goods and serve as a retail store. For many businesses that would otherwise have to operate from several commercial properties, Belmont offers a location where your enterprise can be consolidated and become more efficient.

Why lease an office warehouse in Belmont?

Leasing an office warehouse in Belmont will enable your business to efficiently provide goods and services throughout Perth and WA, while also positioning your staff in an easily accessible location. An office warehouse in Belmont can provide your business with the opportunity to serve as the manufacturing, distribution and retail site for your company. Reducing transport costs and allowing for fast communication within the company.

Leasing an office warehouse in Belmont gives you the flexibility to find a property configuration that will suit your needs and enhance your business.

Renting an Office Space vs Leasing an Office vs Buying an Office

As a business owner, you may be thinking about getting an office and one of the biggest decisions you will make is choosing between renting an office space or leasing or buying an office.

We’ve been selling and leasing offices in Perth for over 30 years and have extensive experience helping business owners make the right decision for their business and their finances. We’ve listed the pros and cons of renting an office space vs leasing an office vs buying an office, to help you decide which is the right option for your business.

Renting an Office Space

Renting an office space usually refers to a short term lease for one office or desk in an existing office complex. You’ll have the option of “hot desking”, “co-working” or renting an office for yourself.

The facilities will depend on each office space but can vary from large offices with views in high rises in the CDB to communal areas where you can use any available desk. Office space rental prices will vary on the type of office space, the building, facilities and amenities with rental terms from 1 hour to 1 month.

Pros of Renting an Office Space

  • Flexibility: You can rent an office space in Perth by the hour, day, week or month.
  • Availability: Most office spaces for rent that are listed are usually available immediately.
  • Only Get What You Need: You don’t need to think about the office space size you’ll need in 6 months or a year. Only pay for the office space you need right now.
  • Networking Opportunities: If you choose co-working with others or hot-desking, you’ll have the opportunity to meet other businesspeople and build your network.
  • Amenities Are Provided: Most office spaces for rent come with printing facilities, coffee/tea and internet.
  • No Maintenance Costs: You won’t need to pay for a thing but your rent. Everything else is paid for by the owner.
  • Low Commitment: You won’t need to commit to a year-long contract. The longest commitment for short term office space is a month.
  • Central Locations: By renting an office space, you’ll be able to choose a location that would otherwise cost a lot more to lease or buy. This is a huge pro if you need to have meetings in a CBD.
  • Less Responsibility: You’re not responsible for anything apart from your rent costs. You can focus on your business and not maintaining the office.
  • Tax Deductions: The costs of renting an office space can be tax-deductible.

Cons of Renting an Office Space

  • Shared Office Spaces: Renting a shared office space means you can have other people in the same room or even on the same desk. This could be a distraction or impact your productivity.
  • Less Control: You’ll be at the mercy of the environment in the office space, this could be noisy people in the hallways, music from another room, untidy areas, low internet speed or poor lighting.
  • No Branding: Because of the short rental lengths, landlords will be reluctant to add any signage to the office.
  • No Power: Owners can decide not to offer renewals or rental extensions of the office space without warning.
  • No Equity: You’ll be spending money on your business but it will be going straight to the office space owner and not building equity for you.

Leasing an Office

Leasing an office refers to long term leasing of a whole office building, multiple floors of offices within a building or a suite within an office complex. It will usually include private amenities and facilities like parking, toilets, storage and kitchen.

Lease terms are negotiable but are usually between 6 months and several years, providing businesses with security that they can occupy that office for a long time.

Pros of Leasing an Office

  • Stability Without a Large Financial Commitment: Leasing an office will allow you to secure an office for years without having to outlay the high cost to buy an office.
  • Low or No Maintenance Costs: The owner will bear most if not all of the costs for repairs, upgrades and ongoing maintenance.
  • Tax-Deductible Lease Payments: Your payments for leasing an office can be tax-deductible
  • Prime Locations:Lease an office in a prime industrial location or CBD, at a fraction of the cost of buying an office.
  • Can Be Cheaper to Lease Than Buy: Depending on the commercial property market, it may work out cheaper to lease an office than buy one.
  • Easy to Leave: If you’ve outgrown the office space or need to change for another reason, you can exit at the end of the lease without the process of selling an office property.
  • Branding and Street Presence: You’ll be able to negotiate with the owner to add your signage to the building and your office.
  • Free Up Cash for the Business: Avoiding the large financial commitment of buying an office will keep cash available to spend on your business.
  • Choose a Long or Short Term Lease: You’ll be able to lease an office with contract length that suits your business.

Cons of Leasing an Office

  • Increase in Lease Payments: It’s fairly standard for your lease payments to increase either after a certain term or if you choose to renew the lease.
  • Owner Has the Power: The owner may choose not to renew your office lease and you’ll be forced to move from the office.
  • No Say in Repairs and Maintenance: The landlord has the power to determine which repairs are done and when.

Buying an Office

Buying an office can be a whole office building, multiple floors of office within a building or an office suite within a complex.

Buying an office gives you full control of the property but can cost significantly more than renting an office space or leasing an office.

Pros of Buying an Office

  • Build Equity: Owning an office will become one of your largest assets and you’ll be able to borrow against the equity of the property.  
  • Capital Growth: The value of the office will grow with the property market.
  • Freedom to Make Changes: You’re in control of everything and develop the property as you see fit. No more landlords.
  • Expanded Income: Lease out extra space in the office or the entire office if you decide to relocate.
  • Steady Payments: Your mortgage payments will be steady as opposed to increasing office lease payments.
  • Tax Deductible: Interest payments and depreciation are tax-deductible.

Cons of Buying an Office

  • Large Upfront Costs: You’ll be paying a significant amount to buy the office as well as taxes and fees.
  • Less Cash for the Business: The money you spent buying the office could have been used for other areas of the business.
  • You Pay for Everything: You’re the landlord, all fit-outs, repairs, rates and maintenance costs are paid by you.
  • Lack of Flexibility: You’re financially invested in the office and can’t relocate as easily as renting or leasing an office.
  • Financial Risk: If you can’t afford the cost of the office, you may put your personal assets at risk.
  • Selling Could Be Slow: There’s no guarantee that you’ll be able to sell the property if you need to. You may lose money if the office sits on the market for too long.
  • Could Sell for a Loss: If the market is down you may make a loss if you sell at the wrong time.

Get Advice from Local Experts

Before you commit to one of the options above, speak to the Perth commercial real estate team at Ross Scarfone Real Estate. We specialise in leasing and selling offices and warehouses in Belmont and the surrounding areas.

You’ll be able to tour the available office properties and we can discuss options that will suit your business and financial positions.

Perth’s 2020 Commercial Property Report: Office

Last month REIWA released their quarterly Perth commercial property market report that revealed the sales statistics of all the commercial properties sold in Perth during the 12 months to September 2019.

We’ve focused on the commercial report on office sales in Perth to analyse what the commercial property market has done in the 12 month period and what you might expect for commercial property sales for 2020.

Perth Commercial Property Sales

Perth office sales in the September quarter increased by 8.5% from last year to record 255 office sales. In comparison, showrooms had a 30.9% growth in sales and warehouses for sale continued to feel the effects of the WA’s flat market with a 12.9% decrease in sales.

Perth Office Sales

Compared to the 12 months to September 2018, the September 2019 report showed an 8.5% increase in Perth office sales, but a 24% decrease from 5 years ago.

Perth Office Sales by Region

When we looked at where the office sales were coming from in Perth, there was no surprise that inner Perth had the highest number of offices sales with 132 in the September quarter.

Following that there were two standout regions: South West – 42 sales and South East – 39 sales.

The majority of Perth had fewer office sales than the September quarter in previous years, with the only improvement in Perth Inner and Perth’s North East.

Of the areas with over 20 office sales per quarter, Perth’s South East has had the most consistent level of sales for the past 5 years. The area has maintained around 40 sales per quarter for the last 5 years, apart from a standout quarter in 2016.

perth-office-for-sale-by-year

What are Perth Offices Costing per Square Metre?

Of Perth’s office sale regions, Perth’s North West overtook Perth Inner as the highest priced per square metre for the first time at $4,741 per square metre – increasing by 17.2% from last year.

Inner Perth continued to be highly priced per square metre at $4,430, decreasing by 25.1% in the last 5 years, but closely followed by Perth’s South West at $4,400sqm which had increased by 15.5% in the last 5 years.  

Perth’s South East is the lowest priced region in the metro area, at $3,852 per square metre, and has been for three years in a row.

When we looked at the historical data for cost per square metre, we could see that most Perth areas are still recovering from price highs from 2015, with only South West and Mandurah achieving higher prices per square metre than 2015.

 Change from 2015Change from 2018Avg in 2019
Perth – Inner-25.1%-9.3%$4,430
Perth – North East-14.2%+11.7%$4,052
Perth – North West-1.2%+17.2%$4,741
Perth – South East-13.3%+8.4%$3,852
Perth – South West+15.5%+13.1%$4,400
Mandurah+15.8%-38.6%$2,479
Greater Perth-17.7%-1.5%$4,195
Cost per Square Metre

Top 5 Suburbs in Perth for Offices for Sale

Four suburbs in Perth’s Inner topped the list of highest selling for office properties, accounting for 36% of all Perth’s office sales. Como has 9 office sales and accounted for 21% of office sales in the South West region.

 SalesPer cent of total sales
East Perth3815%
Perth218%
Subiaco208%
West Perth145%
Como94%
Top Suburbs for Office Sales in Perth

Summary of Perth Office Sales by Region

perth-office-for-sale-by-perth-region

If you’re looking to invest in buying an office in Perth for 2020, here are our top takeaways from September 2019’s quarterly report on commercial property:

  • If you’re looking for short term consistency in pricing, Perth’s South East regions in areas like Belmont, Cannington, Victoria Park and Burswood.
  • Perth’s Inner region of suburbs like Perth CBD, East Perth, Subiaco and West Perth have averaged the highest price per square metre for the last 5 years but have also declined the most in 5 years.
  • The most affordable Perth regions to buy an office are Perth’s South East and Mandurah, with the lowest cost per square metre.

For a detailed breakdown of the Perth commercial real estate market or specific advice on offices for sale in Perth, call or email Ross Scarfone Real Estate. Our agents specialise in office, industrial and commercial real estate in Perth’s south-east corridor including Belmont, Welshpool, Kewdale, Victoria Park and surrounding areas.

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Whether you’re looking to grow your business, expand your investments or shift into a new market, if you need to lease office space in Perth there are a number of things you need to consider.

Leasing an office can be a daunting task, there can be a lot of money at stake and you could be making a choice that will impact the profitability of your business for the next few years.

In the free download “How to Choose an Office Space to Lease in Perth”, we take you step-by-step on what you need to do to successfully lease a Perth office that you’re happy with, starting from 6 months before you need to move.

Why You Need This Guide

Not only does this guide detail what you need to consider when leasing your ideal office, but it also includes tips on how to give yourself more negotiating power when it comes to signing a lease for a Perth office property.

We’ve created a guide of the top 8 questions you need to ask yourself before leasing an office. This guide is a must-read for any business looking to rent an office in Perth.