How Much Does It Cost to Rent a Car Workshop Space in Australia?

27 May 2024 Helpful Tips


Are you thinking about starting your own car repair workshop? When it comes to opening a car repair workshop in Australia there are many ongoing costs that you need to consider. The first and one of the largest is the cost of renting a suitable workshop space. That brings us to the question, how much does it cost to rent space for a mechanical worksop in Australia?

Workshop Mate has put together the complete guide that highlights the average cost of renting workshop space in each Australian state and a breakdown on the factors that affect how much you will pay.

Let’s get into it.

Factors Influencing Workshop Rental Costs in Australia

There are several factors that impact the amount that you will pay in rent at your mechanical workshop in Australia. Typically your price will be determined through one of the 4 following factors:

1. Location

  • Urban vs. Rural: Workshop spaces in urban metro areas, particularly in central business districts are generally much more expensive than those in rural or suburban areas. For example, rental prices for a Mechanical Workshop in Sydney and Melbourne CBDs are higher compared to regional towns in New South Wales or Victoria like Tamworth or Wodonga.
  • City Specifics: The rental market in major cities like Sydney, Melbourne, Brisbane, and Perth varies significantly due to differences in demand, and available commercial properties. In metro locations like Sydney and Melbourne, commercial workshop space is at its lowest in history as of 2024.

2. Size and Facilities

  • Square Footage: When it comes to how much you pay for renting a space to operate a mechanical workshop, everything comes down to the square meters that you need. Larger workshop spaces with more square footage naturally cost more.
  • Facilities and Amenities: It is important to know what type of facilities or amenities that you will need for your workshop in Australia. Workshops with advanced facilities such as modern lifts, high-tech diagnostic equipment, customer waiting areas, and office spaces will command higher rents.

3. Condition and Age of the Property

  • The biggest thing that affects residential property is condition and age of the property, the same can be said for commercial properties. Newly built or recently renovated commercial properties fit for car repairs typically demand larger rental costs than locations that are dated.

Lease Terms

  • Duration of Lease: Landlords typically offer better pricing for tenants that rent out the commercial space for an extended time as it decreases their risk.
  • Inclusions: Some commercial properties that are fit for mechanical repairs may have inclusions like utilities, rent, maintenance or other expenses all of which can result in better prices.

Typical Rental Costs for Mechanical Workshops Across Australian Cities

Now to answer the question, what is the average rental cost for a Car Repair Workshop in Australia in 2024? Let’s dive into it.

Sydney: Sydney has long been known for its high residential property prices, but it is also home to the most expensive commercial real estate in Australia as well. The average cost of renting a car workshop in the Sydney metro area ranges from $200 to $350 per square meter. For example if your Car Repair Workshop in Sydney is 200 square meters it will cost you between $40,000 to $70,000 annually.

Melbourne: Similar to Sydney, Melbourne also has one of the highest commercial rental prices in Australia but it does trail Sydney slightly. To rent commercial property fit for a car repair Workshop in Melbourne, prices typically range from $150 to $300 per square meter. Like the example above, if your car repair workshops size is 200 square meters, your annual rent would be between $30,000 and $60,000 annually.

Brisbane: As Australia’s third biggest city, Brisbane rental costs are much lower than those of Sydney and Melbourne. Costs to rent commercial property fit for Car Repairs typically range between $120 and $250 per square meter. A 200 square meter space may cost between $24,000 to $50,000 annually.

Perth: Coming is as the fourth most expensive city for commercial property rent is the Western Australian capital city of Perth. In Perth, Workshop rental costs range between $120 and $240 per square meter. On a 200 square meter site, your annual costs would be between $24,000 and $48,000.

Adelaide: Adelaide has been found to provide some of the most affordable metro commercial properties in Australia. In Adelaide, workshop spaces can be rented for between $100 and $220 per square meter. For a 200 square meter workshop, annual costs would be between $20,000 and $44,000.

Darwin: Darwin is another affordable Australian city for commercial property. Like Adelaide the average cost per square meter is between $100 and $200. Using a 200 square meter setup, annual costs would be between $20,000 and $44,000.

Canberra: Rounding off our list is the nations capital. Whilst not being a major Australian city, prices are fairly expensive on a square meter basis. Workshop spaces in Canberra often range between $120 and $240 per square meter. Annual costs will on a 200 square meter site will range between $24,000 and $48,000.

Practical Tips for Renting a Workshop Space

When planning to rent a car workshop space, here are a few tips that you should consider to get the best price.

1. Conduct Thorough Market Research: Research different areas close to the suburb or location that you are looking to open a car repair workshop in Australia and compare rental costs. Think about starting a workshop in emerging suburbs that offer lower rates but potential for growth.

2. Negotiate Lease Terms: It’s like buying or renting anything, don’t always go with the first offer, shop around for the best deal. Think about negotiating terms with the landlord.

3. Consider Shared Spaces: Explore the option of sharing a workshop spaces or co-working spaces for mechanics. This is a proven method that significantly reduces costs and provide access to better facilities.

4. Factor in Additional Costs: Remember to cater for ongoing costs like utilities, insurance, and maintenance when budgeting.

5. Assess Long-term Viability: Choose a location that aligns with your long-term business goals. Make sure the workshop is large enough for you to grow into. Moving locations is a costly process that should be avoided.

6. Legal and Compliance: Most importantly you need to ensure that the property that you choose to rent for your mechanical workshop complies with all local regulations.

Final Word,

The cost of renting a car workshop space in Australia varies widely based on location, size, and the amenities offered. Before starting a mechanical workshop in Australia it is important that you plan and understand what you need and looking for a suitable location that you can grow into.

We hope you enjoyed reading this article. To read more articles like this, please visit the Workshop Mate latest news page here.

About Workshop Mate,

Workshop Mate by Jeal is an Australian, Web-based, Workshop Management Software that simplifies and automates the daily tasks of running a mechanical Workshop. Using innovative technologies, Workshop Mate removes common frustrations experienced at the Workshop – opening your doors for future growth.

Workshop Mate features include Job Management, Stock Management, Quotes, Invoicing, Integrated Accounting, Barcoding, Customer Bookings, Service History, Job Allocation and more – in the one central, easy-to-use application.

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