Melbourne is full of entrepreneurial spirit, with around 45,000 small businesses in the city alone. And for most of them, the lease is one of the biggest line items on the monthly expenses sheet.
That’s a problem when commercial rents across the city are costing $300 to $900 per square metre each year, and a lot of that space isn't being used for actual work. It's being used to store things like old stock, archived paperwork, and equipment that barely gets used.
If you’re a small business owner looking to reduce office costs in Melbourne, there are more solutions than you may realise. Here's where to start.
Your office should not just be a storage unit
A lot of Melbourne offices are doubling as storage rooms — and that's one of the more expensive habits a small business can have.
Next time you're in your space, try walking through it like it's the first time you've been there. Just like that chair at home piled with washing, we get used to our own clutter in the workplace. You stop seeing it.
Look at it with a fresh perspective and ask how much of the space is being used for actual work and how much is just... stuff. It all takes up space, and that space costs money. More specifically, it costs $300 to $900 per square metre each year. For most small businesses, that's money they can't afford to waste.
You might be paying commercial rent rates to store things that could live somewhere much cheaper. External Melbourne storage can hold out of season stock, old paperwork and furnishings that no longer benefit the space you’re in. It clears out a lot of space and helps streamline your business as a whole.
Bigger isn’t always better
There’s a long-held idea in business that a bigger office means more success, so downsizing must mean things are going backwards. Well, here’s the thing: running a well-organised, smaller space is way more profitable.
The key is making sure the space you have is actually being used for the right things: people working, clients meeting and goods moving, rather than acting as an expensive filing cabinet. You don’t need a large office to do these.
If your team works from home a few days a week, that's even more reason to downsize your office space in Melbourne. According to Roy Morgan, 52% of Melbourne workers work from home. That means your business may be paying for space that sits empty most of the week. A setup with fewer desks could save you a heap of money each month and give your team a functional workspace.
Co-working can save space and money
Flexible working is now a normal part of running a business. If most of your team isn't in one place every day, a long-term lease on a big office is hard to justify, especially at Melbourne’s rates.
A traditional office lease in an Australian capital city costs up to $25,000 per employee each year. Coworking averages around $7,200 per. For a team of five, that's a difference of nearly $90,000 a year.
Whether you want a hot desk, a private office, or something in between, coworking spaces can have something available near you.
The smart move is pairing a compact, flexible workspace with a local Melbourne storage unit for everything physical that doesn’t fit in lockers. That way, you get the option of face-to-face working without being locked into a lease that's too big.
| Traditional office lease | Coworking | |
|---|---|---|
| Cost per employee a year | up to $25,000 | ~$7,200 |
| Team of 5, annual cost | up to $125,000 | ~$36,000 |
| Upfront costs | Bond, fit-out, utilities | All-inclusive membership |
| Flexibility | Fixed term | Month-to-month |
| Sources: UnitedCo · EIBC Melbourne coworking prices 2025 | ||
Treat storage as part of your business
Your business will only get real value from off-site storage when it’s being used properly. Storage shouldn’t be used to dump things that you don't want to deal with. Understanding how storage can benefit your business is the first step - after that, it comes down to being intentional. Know what's there, keep it organised, and rotate your stock properly.
Think of it less like the spare room and more like an extension of your business. Some things that belong in storage:
- Paperwork you have to keep but haven't looked at in years
- Seasonal equipment
- Extra stock of a big sale or product launch
- Display gear, samples, or event materials
When it's managed well, moving this stuff off-site can free up enough room that you can downsize or, at the very least, stop feeling like you're working in a stockroom.
Have the awkward chat with your landlord
If you're stuck in a space that's bigger than you need, you don’t have to quietly pay for it until the lease runs out. In Victoria, commercial leases sometimes include break clauses that allow early exit. Check your commercial lease agreement or speak to a commercial solicitor.
Alternatively, just speaking to your landlords about what can be done could make all the difference. Most landlords would rather work something out with a tenant they know than go through the hassle of finding someone new.
Three options to discuss with your landlord
Go in with a clear idea of what you actually need. Maybe it's a smaller unit in the same building. Maybe it's subletting part of the space. Maybe it's just renegotiating the price. There are usually more options than people expect, but if you don’t ask, you won’t get.
Conclusion
Rent is expensive, and a lot of Melbourne businesses are paying for more space than they need because they haven't separated "where we work" from "where we keep stuff."
Getting those two things into the right places will make a big difference to your small business. Choosing the right-sized workspace and proper off-site storage is one of the simplest ways to cut your fixed costs without disrupting how you actually operate.
If you need help moving excess stock or equipment into storage, Holloway Removals & Storage offers business moving and storage services across Melbourne. They can expertly handle office equipment and warehouse supplies into storage for you. Get in touch to talk through what you need.
FAQs
How much does commercial office space cost in Melbourne?
Commercial rents in Melbourne run between $300 and $900 per square metre each year, depending on the location and building.
Can I break a commercial lease early in Victoria?
Some commercial leases include break clauses that allow early exit. Check your agreement or speak to a commercial solicitor about your options.
Is coworking cheaper than a traditional office lease in Melbourne?
Yes. A traditional office lease costs up to $25,000 per employee each year. Coworking averages around $7,200. For a small business, the difference is huge.
What should small businesses keep in off-site storage?
Archived paperwork, seasonal equipment, excess stock, display gear, and surplus furniture — anything that takes up commercial floor space but isn't needed day to day.
How do I know if my office is too big for my business?
If part of your space is being used to store things rather than to work, you're paying commercial rent rates for something that could sit in storage for much cheaper.
