More and more businesses are going back into offices as the world adjusts to a new semblance of normalcy. That means that companies are back on the property market, looking for commercial properties to rent for their day-to-day operations. In New South Wales (NSW), owners may be surprised at how much the real estate scene has changed. Real estate for rent in Sydney has become more expensive, while the market has become extra competitive.
Renters can expect to pay an average of $1,300 per square metre to rent commercial property in the central business district (CBD)–the highest in the country. Other areas (and lower-grade properties) can demand cheaper prices, ranging between $700 to $1,200 per square metre.
What Is Commercial Property?
Commercial properties refer to real estate that serves a business purpose. These include:
- Retail buildings
- Offices
- Warehouses
- Industrial buildings
- Apartments
- “Mixed use” buildings (or property that’s a combination of any of the above)
Average Cost of Rent for Commercial Property in Sydney
There are many myths about rental property in Sydney; most of these have been debunked, leaving buyers, renters, and investors alike more confident about getting into the market. Still, the effects of the pandemic have brought a lining of truth into some of these myths, particularly those relating to the city’s steep property prices.
Expensive real estate is a reality in both the residential and commercial markets (e.g. the cost to rent a beach house in Sydney can go up to $2000 a week), but it’s still possible to find affordable commercial rentals if you know where to look.
Commercial property rent in Sydney is calculated on an Australian dollar to square metre basis. To prepare yourself and your budget, here’s a look at the average cost to rent commercial properties in some Sydney business hotspots:
- Sydney CBD: $900 to 1,300 per square metre
- CBD Fringe: $700 to $950 per square metre
- North Sydney: $800 to $1,000 per square metre
- Parramatta: $450 to $750 per square metre
Note that these prices are the base and will have incentives or outgoings and other expenses added onto them later on. The further out of central Sydney you are, the cheaper the price of the commercial property rental. If budget’s an issue but your location is flexible, then you should set your sights on suburbs, instead.
Factors That Affect the Cost of Renting Commercial Property
Several factors affect how much you can expect to pay for renting commercial property in Sydney. It’s good to understand these so that you can adjust your budget or limit your search when you’re in the market.
Location
More central locations, such as spaces in the heart of the CBD, will command the highest rental prices. If you don’t need the premium address, then you’re better off looking on the fringes for more cost-effective rentals.
Asset Class
Buildings in Sydney may be classified as premium-grade, A-grade, B-grade, and so forth. The higher the asset class, the better its quality and, therefore, the higher its price.
Size
Because commercial rent is calculated based on square metres, it follows that the bigger the rental property, the higher its price will be. If you only have a small team, consider getting a space that’s just enough for you to operate comfortably instead of splurging on a too-large space.
Amenities
Locations that offer more amenities and better accessibility (e.g. proximity to public transportation) will be more costly. Additionally, properties that will require a new fit-out may raise your expenses significantly.
Find a Commercial Property for Rent in Sydney With Soho
Now that you know what to expect when renting commercial property in Sydney, it’s time to search the market for the best real estate rentals for your business. You can easily do so on Soho to find the most ideal fit for your criteria at attractive prices. Search the area you’d like to be in to find available properties, or download the Soho app to shortlist your favourite properties and get better matches as you go!
