1. What is Business Rent Calculation?

The business rent calculation estimates monthly commercial property costs in Australia based on the area and rental rate per square meter. This helps businesses budget for their premises expenses.

2. How Does the Calculator Work?

The calculator uses the simple rent formula:

Where:

• \( Area \) — Floor space in square meters (m²)
• \( Rate \) — Rental rate per square meter per month (AUD/m²/month)

Explanation: The calculation multiplies the total area of the commercial space by the going rental rate for that type of property in the specific Australian location.

3. Importance of Rent Calculation

Details: Accurate rent estimation is crucial for business financial planning, comparing different property options, and negotiating lease terms with landlords.

4. Using the Calculator

Tips: Enter the total area in square meters and the current market rate per square meter. Rates vary significantly by location (CBD vs suburban), property type (office, retail, warehouse), and property quality.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net rent?
A: Gross rent includes all outgoings (taxes, maintenance), while net rent is base rent plus some outgoings. This calculator assumes gross rent.

Q2: How do I find current market rates?
A: Check commercial real estate listings in your target area or consult a commercial property agent for current rates.

Q3: Are there additional costs beyond base rent?
A: Yes, businesses may also need to budget for fit-out costs, security deposits, insurance, utilities, and maintenance.

Q4: How often do commercial rents change?
A: Typically reviewed annually or at lease renewal (often 3-5 years). Some leases include fixed annual increases.

Q5: What's typical for Australian commercial rents?
A: CBD office spaces might range from A$400-1,200/m²/year, while suburban retail could be A$200-600/m²/year depending on location.