The working from home revolution is here – Is the office an expensive artifact?

Australian businesses are overhauling their working from home policies and investing heavily in their IT structure. It’s an undenied historical shift in the way people work.

The Economist goes as far to call it “The working from home revolution”, This revolution will make expensive office space obsolete and will accommodate more towards collaborate and creative tasks.

So what are the options?

Businesses will need to change the way they look at their office. With so many people working from home, most Australian employees feel disengaged with their colleagues when working from the office with empty desks around.

Redesigning current working environment

Once businesses have a better understanding of their new ways of working, it’s time to change the office. As the function of the office changes, so should the fitout.

Businesses understand the office space has to change, and are currently educating themselves before pulling the trigger on a new lease agreement.

A new fitout that is built with the vision for staff to collaborate, come together and be creative, instead of conducting production tasks at their desks. Neogo, can help you access Australia’s largest network of fitout builders to make adjustments to your office fitout.

Downsizing, new lease

Alternatively, businesses can downsize and move to a more affordable space that better suits their new way of working. While other businesses are waiting on the sideline of the commercial property market. Now is the time to negotiate a good deal. In times with high vacancy rates, landlords are eager to let their place and will offer attractive incentives.

City:Number of vacant commercial properties:
Sydney CBD3775 properties
Melbourne CBD3622 properties
Brisbane CBD2402 properties
Perth CBD1060 properties
Adeliade CBD856 properties
Source: CommercialRealEstate.com.au

Commercial lease incentives

So, you’ve decided to downsize and sign a new lease agreement, here’s what you can negotiate on with your landlord:

Rent-free period

Probably the most common incentive for commercial lease agreement in the Australian property market. Tenants are able to negotiate a rent free period, with their landlord. Landlords will often go as far to provide the tenants with a rent free period of anywhere up to 12 months in order to induce a tenant to enter into a lease.

Lower rent

A reduction in rent can be negotiated in a market with high vacancy rates. In order to get the best deals you might want to consider taking on a tenant representative. Tenant reps are specialised in the local market, know the value of property and can negotiate a good deal for you.

Fitout cash contribution

In Australia, tenants are responsible for the fitout and make-good of commercial properties. However, a landlord will very commonly make a cash contribution to the tenant to be used by the tenant in the fitout of the office. When this happens, the tenant manages the fitout and retains ownership of the fitout.

How to find and compare fitout companies?

Fitoutfinder connects high-quality fitout contractors with customers who need them. We have a comprehensive network of builders who specialise in different fields; including retail, office, medical, and industrial. Neogo is the first step towards creating a space to represent your business.