How to Beat Rising Rent Costs and Get a Great Office in Auckland
In 2015, Auckland and Wellington just snuck onto the list of the ‘one hundred most expensive cities to rent an office.’ In 2016, they started climbing, after the cost of commercial real estate soared. Yet, like many international cities, Auckland has much to offer entrepreneurs. It has a thriving economy and a robust consumer market, as most people are reasonably wealthy and looking to spend.
Over the last decade, there have been substantial developments in the tech, telecommunications, and IT sectors. Plus, it is worth noting that the pace of life is different here. Working hours are flexible, and the competition is less fierce. Auckland is a place where innovative start-ups can go to experiment with new ideas. The question is, how can young companies beat rising rent costs?
Keep reading to find out how to grab great office rental rates and put a cap on costly overheads.
Ditch Long Term Leases
It can be hard for businesses to let go of the assumption that long-term leases mean long term security. While the notion sounds convincing on the surface, you only have to dig a little deeper to find out why this is not the case. Far from giving a company stability, traditional rental systems prevent it from moving and shifting to fit the market.
Businesses are not built on profits alone. If they were, it would be almost impossible for anybody to survive, because every enterprise has highs and lows. The key to success is having the flexibility to ride these waves. It is why providers like Servcorp New Zealand always offer negotiable terms and never ask for lock-in contracts.
Stability without Commitment
Once you realise that the notion of commitment does not really exist for businesses (or at least, it doesn’t have to), you can start to take advantage of some important freedoms. Virtual and serviced facilities charge some of the lowest rates around, even in Auckland. They can do this because they minimise waste as far as possible.
Tenants are encouraged to pick the services that they want using a ‘menu’ like system. For instance, if you do not have a use for a conference room, you do not have to pay for, and it will not take up space in your office. If you are a mostly paperless business, you can get rid of mailbox facilities and invest more cash in telephone support.
No Fear of Uncertainty
By now, it should be clear that your aim is not to try and find an office which will suit you for as long as possible. Sure, look for workspaces with long-term potential, but don’t make a decision and feel like you cannot change your mind at a later point. This is the beauty of virtual and serviced facilities, with negotiable terms – you can stay as long as you want to.
The fact that there aren’t lock in contracts does not mean that you are less secure. Serviced providers cater to all kinds of tenants; from the ones who stay a month and move on to the ones who lay down roots for years. If you are keen to establish yourself in Auckland, claim a flexible workspace as your permanent base. However, remember that the option to make changes is there if things get tight or you want to grow faster than anticipated.
Why Staying Flexible is the Secret to Success
Young companies and startups with narrow profit margins can have the best of both worlds. Virtual and serviced offices give you the opportunity to position yourself among the big market players, without taking on the same costs. Plus, they are great places to network and meet fellow entrepreneurs, particularly if you are new to the area and looking for contacts.