As rent is typically a company’s 2nd largest cost centre (with HR being the largest), managers should regularly reassess their office needs seeking to trim excess costs in view of remaining competitive in the current economic environment.
With almost 20% of Perth’s office space now sitting vacant and developers further adding to the glut, rents have plummetted almost 40% compared to 2 years ago. The Perth office vacancy rate is currently sitting at it’s highest point since 1995 and is tipped to peak as high as 24% when new developments reach final completion.
For the first time in 20 years it is finally a ‘Buyers Market’ so now is the time to look into renegotiating office space rental agreements while landlords are more likely to more agreeable to lower rates and more attractive terms.
In 2012 the Finance Minister Simon O’Brien commented that “Perth’s CBD remains the tightest – and most expensive – office market in the nation, a situation that shows no signs of easing any time soon”. It was at this time that the government announced plans to relocate 80,000sqm of office space from the Perth CBD to Stirling, Murdoch & Fremantle. The idea of decentralisation is used extensively in the US where companies move away from the extorbitant rates required for prime big-city CBD office space. Suburbs to consider in Perth are Osborne Park, Joondalup, Malaga, Belmont and Victoria Park. These suburbs have very adequate infrastructure and are very close in proximity to the CBD. In actual fact, the City of Stirling is only 8km yet is about half the cost per square metre compared to the CBD.
Reconfigure your workspace to create a leaner, more efficient environment. With the increase of technology, the required space for a typical office worker has dramatically decreased. This fascinating time-lapse video clearly points out how much impact technology has changed our workplace. Another very insightful video is this one from Paul Akers (CEO) from FastCap showing how he reduced his own footprint from a fully furnished office to a very compact, yet highly functional & organised mobile standing desk. Imagine how much savings in space could be achieved if all the staff had such a small workspace. Use this free online calculator to assist with your requirements
To speak to the Perth Office Furniture & Fitout specialists, call us on +61 8 9359 1288 or by email at [email protected].