Blog - Commercial

08 October 2014


Home office v. traditional office – it’s a decision that many small businesses grapple with, and will continue to debate in the future.

Key factors to consider


It’s indisputable that a home office has definite cost advantages. If you have the room for a home office then on the surface, it seems silly to pay extra for another office away from home. This applies to not only the rent but also a bank guarantee (security), insurance, legal costs etc. There are also tax advantages for both, however many people subsidise electricity costs, rates, phone, data costs etc. in a home office with their normal home expenses. This can make a significant difference to the household budget.


The next consideration is flexibility. Most office landlords will want a lease commitment; this is usually between 1 – 3 years, which will need to be signed, committing you to the space. With a home office, you have the flexibility to use it for as long (or as little) as you need it.

Travel is another advantage that can be taken into account.  When you work from home, there are no traffic nor public transport issues! This sounds like the ideal scenario; wake up and walk straight into your office, no delays or frustration.

With all this flexibility, however, come many disadvantages as well. Some of these include:

  • GROWTH.  The need for future expansion must be considered. The issue of privacy also needs to be considered. You will need to share your house with work colleagues, and this undoubtedly creates issues. No matter how small or large your team, it’s still an invasion of privacy to have them in your home. A traditional office can be found that fits your exact brief; office incentives are higher than they ever have been, and there are so many options on the market that will fit in with your size (pardon the pun!) and budget requirements.
  • DISTRACTIONS also come into play. These can be multiple and varied, from family members distracting you, TV, pets, chores, neighbours etc there are many opportunities to be distracted. Of course, it depends on the individuals, some people get more distracted than others and motivational levels vary, some people are happy to work alone while others need to be surrounded by others to stay motivated. A traditional office will offer much more structure and a more professional working environment to most people.


Apart from all of this – it makes you look far more professional. Think about it like this… You send a brief out to redesign your company’s website to three boutique agencies. Two come in head to head, but one is working out of an apartment in the suburbs, and another one has an office in the CBD. Who would you go with? My money is on the agency in the CBD, most likely because it seems the most stable, with a team of people behind the door. Now, this, of course, may not be the case, but we all know how much first impressions count.

We’ve got great options

In summary, a home office sounds like a good idea however, in reality, most people opt for a traditional office space. If you are an individual who is self-motivated and happy to work on your own then a home office is an ideal option, however, if you are running a business with multiple staff then it will be very hard to make it work.

To make the transition easier, lease a traditional office with any potential growth in mind, convenient location and a work environment that will keep staff focused and motivated.

Get in touch with us today so we can find some great offices either for lease or for sale, to fit with your business needs.


Date: 08 October 2014 Author: Adam Hennessy

About the author:

Adam Hennessy

Adam Hennessy has been involved in the Sydney commercial real estate industry for over 16 years and is Director of Office Services at TGC. After owning Ray White Commercial Sydney Leasing, Adam joined TGC in January 2007 with a mandate to grow TGC’s office services portfolio.

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