Media release
Under strict embargo
Saturday 13 June 2015, 12:00am midnight
When is the right time to move into your first commercial premises?
New research from realcommercial.com.au reveals top triggers & tips for small businesses
If you’re working from home or a shared office space and you’re feeling unprofessional, isolated or
lacking in storage, now is the perfect time to start thinking about moving to commercial premises.
Australia’s leading commercial property site realcommercial.com.au recently surveyed over 1000
small business decision makers across Australia and found the most common triggers for businesses
to moving from a home office to their first commercial premises were1:
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Not having an appropriate space to work in
A home office being less professional
A lack of storage; and
Feelings of isolation.
For businesses operating from a shared workplace, key drivers for the move to their own
commercial premises were concerns about privacy, a need to feel more in control, and a lack of
storage.
The most commonly sought properties were retail, lower grade offices and industrial/warehouse
spaces of less than 500sqm.
Participants in the survey identified the benefits of leasing as being able to lease a better property
than they could afford to buy or one in a better area, and having the flexibility to move premises as
their business needs change.
The benefits of buying a property were seen as having more control of the length of time in a
property, more control over changes made to a property, and expectations of capital growth.
According to the survey, the most stressful parts of moving premises are the physical move,
arranging finance, the fit-out, and finding a property.
realcommercial.com.au Head of Sales Isaac Smith said that small business owners now have an
added incentive to finally make the move into their first commercial premises.
“With the Federal Budget’s recent incentive for small business owners to write off assets up to
$20,000, now could be the right time to think about moving from your home office into your first
commercial premises,” he said.
1
realcommercial.com.au Consumer Insights Study, 2014
“Small business owners have lots to manage, so we’ve made it easier for you by putting businessrelated tips, tricks and advice on our blog at realcommercial.com.au,” he added.
realcommercial.com.au’s five top tips for businesses moving to their first commercial premises are:
1. Location – Think about what location will best suit your business. Are you hoping to attract
passing traffic or do you want to be close to major clients?
2. Lease vs buy - Do you want to lease or buy? Leasing gives you flexibility to move as your
business needs to change and often means you can base yourself in an area you couldn’t
afford to buy in; buying provides long-term certainty for your business, potential capital
growth, and more control over changes you want to make to the property.
3. Budget - Make sure you budget for set-up and ongoing costs including removalists, telco &
utility connections, fit-out, new equipment and property improvements, monthly lease costs
[and bank guarantee], and insurance. Remember you need to allow 10-12sqm per employee
for an open plan office and get creative with a fit-out that reflects your brand – it doesn’t
need to break the bank so be sure to look at a range of furniture retailers, not just office
furniture outlets.
4. Find an agent – Find a commercial agent who ‘gets’ your business and understands what
you need from your commercial premises– not only will it save time by helping you narrow
your search and locate suitable properties, through your agent you can negotiate lease
terms, rent-free periods and other lease incentives with the landlord.
5. Marketing - Use the move to a commercial premises as a marketing opportunity for your
business – host an office warming or use your change of address notification as an
opportunity to remind current and former customers how you can help them.
-endsFor more information:
Alice Hodges, PR Manager
Mob: 0400 326 866
[email protected]
Methodology: A national sample of small to medium businesses (up to 199 employees) was sampled using the
Online Research Unit’s (ORE) stand-alone business research panel. A final sample size of n=1,010 was
achieved. The sample was skewed towards businesses with 5 to 199 employees. Consequently, the data was
weighted to match the Australian population of small to medium businesses.
About realcommercial.com.au: realcommercial.com.au is the leading website in Australia for commercial
property, attracting an average of 1.1 million visitors a month. It is owned and operated by ASX-listed REA
Group Limited ACN 068 349 066 (ASX:REA). Source: Nielsen Online Market Intelligence, Total Traffic, average
calculation January-March 2015.
Case studies of businesses that took the leap from a home
office into their first commercial premises
CASE STUDY SYDNEY: Pretty Digital
Pretty Digital Director, Brett Stockley, started a small web design and digital marketing company in
2005 with his partner.
“It got to a stage where we couldn’t fit our staff in our house any more. We had two rooms out of
three bedrooms dedicated to the business and we had to queue to use the microwave,” says Brett of
the decision to move from a home office to commercial space.
“We initially moved to an office in North Sydney before moving to our current premises in Surry
Hills, walking distance to the Sydney CBD. It was difficult as once you start adding rent you are
adding a second telephone line, internet connection, car parking. We held out as long as we could,
until we were bursting at the seams at home,” Brett said.
Brett says when it comes to making the decision to move into your first commercial premises, you
need to be a little bit bold and take risks. If you pick your timing and take a longer-term view an
office can help you attract more customers, pitch bigger accounts and win more business.
“You have to take a leap of faith.”
In February this year, Brett made a commercial property investment with the purchase of an office
in the Holt & Hart building in the creative precinct of Surry Hills. He secured the property through
DB Properties, which also found Pretty Digital its current Surry Hills office. Brett intends to lease the
new office out, with a view to moving into it sometime in the future.
Pretty Digital
Above: Brett Stockley, Pretty Digital Director
Photo credit: Lorenzo Bocchi, Art & Creative Director at Pretty Digital
www.lorenzobocchi.com
CASE STUDY MELBOURNE: Hawkers Beer
Founder Mazen Hajjar started making 961 beer in 2006 in Beirut, Lebanon which was exported to 26
countries. Mazen later met Joseph Abboud in 2012 and went into business together. After
embarking on a successful road trip in Sydney selling their beer, Mazen and Joseph set up locally in
Mazen’s home before moving on to a commercial space at 167 Henty Street, Reservoir, found
through David Butera from Butera and Co in 2014. Mazen describes the food and beer culture as
more advanced in Melbourne.
“Our business was expanding and there simply was not enough space to continue making beer in the
space of my kitchen. For us, it’s impossible to work from home as we constantly need to
manufacture beer. Every month we produce thousands of bottles of beer. A commercial space was
the right choice for us. My humble kitchen is now a very large brewing factory in the city,” said
Mazen.
The origin of the Hawkers Beer name stems from the days when Mazen and Joseph started our
“hawking” beer to locals. The duo love making beer and are big fans of the flavour.
“We’re partners in this.”
Hawkers Beer currently distributes to 60 places around Melbourne.
Hawkers Beer
CASE STUDY BRISBANE: Inspire Health Therapies
Michelle Rogers thrives on mixing the practices of psychology and yoga, turning this into her own
business. Initially studying psychology, Michelle wanted to integrate the iRest® yoga practices she
learnt from founder Richard Miller, with her study. She completed level I and II training of iRest®
Yoga Nidra training in 2014 and has found that combining both psychology and yoga is effective with
post-traumatic stress and anxiety.
“I have discovered this combined approach is a powerful resource and started the business working
with others in a doctor’s surgery but wanted the flexibility to conduct iRest® Yoga Nidra Groups in
conjunction with counselling,” said Michelle.
Realising that she needed a larger space to set up her business on her own, she began considering a
leased premise in Mitchelton in Brisbane’s North West. Suggested by her commercial agent Hudson
Dale from Raine and Horne, Michelle officially moved into the space earlier this year in January.
“This studio really offers more flexibility in regards to family and work-life balance. Going out on my
own was the right decision for me as it means I’m not relying on others for income. Having this
larger space also means I can incorporate all aspects of my business comfortably.”
Michelle has been operating Inspire Health Therapies for the past month and is enjoying the benefits
of being in a commercial space.
“It’s absolutely worthwhile going down this avenue of having a commercial space. It allows my
business to grow and gives me the space to develop my own ideas as well.”
Inspire Health Therapies
CASE STUDY SOUTH AUSTRALIA: One Night Stand boutique
With family ties currently in the dry cleaning industry and previously in the suit hiring industries, 26
year old Natalia Chehade pursued her own path by hiring out clothing from her personal wardrobe.
She started from her parent’s granny flat three years ago and business spread via social media
initially.
“Most people who were lining up were 16 year old girls, hoping to find the perfect dress for their
formal,” Natalia said.
Natalia had so many customers coming to her parents’ home; she made the decision to move into
the back of her brother’s dry cleaning shop in the CBD. Business grew and she moved once again
around the corner to a larger shop on Hutt Street. Two years later even that space was not big
enough for the 300+ dresses so she moved again to Pulteney Street in the CBD. The new shop is two
shops joined together. Natalia is currently renting this space through Phillis Real Estate and is looking
into potentially making an offer to buy.
“I love this new space which I’ve moved into this year as it’s located in a prime corner spot between
two main streets in the CBD with large windows. It’s like a fishbowl - I want people to look into the
shop front.”
“There’s a lot of competition from others hiring out dresses so I really wanted to stand out. I chose
to move into a shop front as I believe it shows who the leaders are in the industry and I wouldn’t
have been able to grow my business from home.”
Natalia says with the two shop entrances, there’s potential to expand the business into men’s wear.
“It’s definitely on the cards.”
One Night Stand Boutique