Shortage of office space stymies growth in small business sector

Small business owners are looking to take advantage of historically low interest rates and buy their own premises, but are facing a shortage of suitable office space.

Colliers International investment services executive Matthew Winter said they had received strong levels of enquiry from business owners looking to buy office space between 100 square metres to 250 square metres.

“We’ve heard from lawyers, accountants, financial planners, people in IT and many other sectors who are looking at the inner north, south and the CBD,” he said.

“There are plenty of properties that meet the size criteria, but the problem is that most of that available stock is older and doesn’t meet modern needs.

Winter said business owners were demanding parking spaces and other amenities that came with contemporary developments like end-of-trip facilities including showers and bike racks.

They were also looking more flexible work spaces offered by open plan office layouts.

“Many of these business owners are looking to move from a lease environment into their own properties – and it’s often a flight to quality, to new developments,” he said.

Winter said more mixed use developments were in the pipeline that offered that sought-after balance of residential, retail and office spaces.

“There will be opportunities in Lonsdale and Mort Streets in Braddon before the end of the year. Kingston is fairly stabilised at the moment but we can see more developments there in the next few years,” he said.

General manager of Capital Wealth, Rhys Caldwell-Bastian said he had been unsuccessfully looking to buy office space of around 300 square metre for nearly two years.

“We’ve looked all over the place from Weston Creek to Braddon to Gungahlin,” he said.

“Some properties have nearly fitted the bill, but we haven’t found anything that met all our needs.”

The Phillip-based financial adviser said sufficient client parking was a huge consideration as was end-of-trip facilities for staff.

“It seems as though it’s easy to get space if you are a one-person concern or a big corporate. Suitable space in between is in very short supply,” Caldwell-Bastian said.