Melbourne might be known for its lane way lattes and four-seasons-before-lunch weather, but when it comes to leasing commercial property, the charm tends to wear off around the third unread email from your landlord and the sixth clause in the lease that you “definitely should have read more closely”.
We’ve worked both sides of the fence—agents and tenants—so we know the dance. Before you start browsing commercial real estate to buy or lease in Melbourne or Mackay, here are seven things you’ll want to consider:
1. Location is only part of the puzzle
You already know you want foot traffic, proximity to public transport, and parking that doesn’t require a treasure map. But don’t just look at where the building is—look at what’s around it. That great corner site may come with a nightclub next door, and unless your business thrives on thumping bass and late-night revellers, you’ll want to think twice.
Also worth asking: is that strip of boutiques a genuine shopping precinct, or a pretty row of empty shells dressed in “For Lease” signs? Street presence is great. Vacancy rates tell a different story.
2. The headline rent is rarely the full story
You see a number. It looks reasonable. Then come the outgoings. Council rates, insurance, maintenance, cleaning, security—and that’s before you’ve switched on a lightbulb.
Ask for a breakdown of total occupancy costs, not just the base rent. Some landlords quote net rent, others gross, and some… well, some assume you’ll find out eventually. Better you find out now.
3. Lease terms aren’t one-size-fits-all
The standard lease term is often five years, with options to renew. But that doesn’t mean it’s the only structure available. Startups might want something shorter. Established businesses might want a longer term with fixed increases.
Negotiation isn’t just about dollars. It’s about duration, exit clauses, incentives, and the fine print that governs who’s fixing the leaking roof when Melbourne remembers it’s technically still a swamp.
4. Fit-out flexibility is often more fiction than fact
You walk into a space, see potential, and start talking in optimistic tones about open-plan offices, glass meeting rooms, maybe a touch of plywood to keep things feeling “creative”. Then you read the lease. And the fit-out rules. And the part where you have to return the premises to its original condition, including the hideous blue carpet tiles from 1998.
Some landlords are flexible. Many aren’t. Check before you start sketching layouts on napkins.
5. Incentives are real—but not always obvious
Landlords want good tenants. You want favourable terms. Somewhere in there are incentives.
But here’s the trick: incentives aren’t always offered upfront. You usually have to ask. Sometimes you have to negotiate like you’re buying a second-hand ute from a bloke named Kev. Either way, don’t assume what you’re offered first is the final word.
6. Zoning isn’t just bureaucratic busywork
Zoning laws in Melbourne can be deceptively simple on paper and baffling in practice. What looks like a perfect retail space might only be approved for office use. Or worse, it might require a planning permit that takes months to secure.
Check the zoning before you fall in love with the space. Then check whether any overlays apply. Environmental, heritage, noise—Melbourne loves a good overlay.
7. Access matters more than aesthetics
It’s easy to get caught up in polished concrete floors and warehouse-style ceilings, but practical access matters more. Deliveries, bins, emergency exits, and accessibility for customers and staff—if these aren’t easy, you’ll be solving small logistical nightmares every week.
A beautiful space that’s impossible to park near or requires clients to climb three flights of stairs in August rain loses its appeal fast.
The Melbourne market isn’t easy, but it’s not a minefield either. A bit of scrutiny, a few questions asked early, and a good advisor can save you the slow bleed of a bad lease.
Lease the wrong space, and you’ll be counting down to expiry. Lease the right one, and it can be a springboard. Just bring your reading glasses, a healthy suspicion of marketing copy, and someone who knows how to interpret a lease clause without sighing.
