Serviced offices have become one of the fastest-growing workspace options in Australia. They offer all-inclusive pricing, flexible terms, and move-in-ready setups. No fit-out. No separate utility contracts. No make-good obligations. Sounds perfect, right? Well, not every agreement is the same. The details that separate a good deal from a costly mistake are often buried in the fine print. This article walks through 10 questions every business should ask before signing a serviced office agreement in Australia.
What Exactly Is Included in the Monthly Fee?
Why This Matters
Serviced offices are marketed as “all-inclusive.” But what does that actually mean? The definition varies between providers. Some bundle everything into one monthly per-desk price. Rent, furniture, internet, utilities, reception, cleaning, kitchen supplies, and meeting room credits. Others charge separately for printing, meeting room usage, parking, after-hours access, or phone answering. Without clarifying inclusions upfront, the advertised rate can quickly balloon. Companies like Servcorp, which has operated since 1978, typically include comprehensive packages, but you should still verify exactly what’s covered.
What to Check
Request an itemised breakdown: Ask the provider for a full list of what’s covered in the quoted price and what carries an additional charge. Pay particular attention to meeting rooms, printing/scanning, parking, and kitchen services.
Ask about usage caps: Some providers include a limited number of meeting room hours per month (say, 10 hours) and charge premium rates beyond that. Understand the cap and the overage cost.
Clarify phone and mail handling fees: Virtual reception, call answering, and mail forwarding are common add-ons that may or may not be included.
Pro Tip: Convert the total monthly cost (including all extras you’ll realistically use) to a per-person figure and compare it against the Australian averages. Around A$656 per month for serviced offices in 2025, though CBD locations like Sydney can run A$900 to A$1,500 or more.
Is This a Licence Agreement or a Lease?
Why This Matters
Most serviced offices in Australia operate under a licence to occupy, not a commercial lease. This is a big legal distinction. A licence gives you permission to use the space but does not grant exclusive possession. The provider retains more control over the premises. Licences are typically shorter-term, simpler to execute, and don’t carry the same protections (or obligations) as a commercial lease under state-based retail or commercial tenancy legislation.
What to Check
Confirm the agreement type: Ask the provider directly whether you’re signing a licence or a lease. Read the document’s heading and defined terms carefully. The label matters for your legal rights.
Understand what you give up: Under a licence, you have less legal protection if the provider wants to relocate you within the building, change your space, or modify terms. You also don’t benefit from statutory protections that apply to commercial leases in some states.
Know what you gain: Licences are faster to set up, involve less legal cost, and typically have no make-good obligations at exit. This is one of the biggest financial advantages over traditional leases.
Pro Tip: Even though licence agreements are simpler, have a solicitor review the terms the first time. Especially the termination, relocation, and fee-increase clauses.
What Is the Minimum Term and How Do I Exit?
Why This Matters
Serviced office terms in Australia range from month-to-month to 12 or 36 months. Shorter terms offer more flexibility but often come at a higher per-desk rate. The exit process, including notice periods, early termination penalties, and bond refund timelines, can vary dramatically between providers. This directly impacts your financial exposure if circumstances change.
What to Check
Clarify the minimum commitment: Ask whether the agreement is month-to-month, 6-month, or 12-month minimum. Understand how the rate changes with commitment length.
Understand the notice period: Most providers require one to three months’ written notice to terminate. Missing the notice window often means automatic renewal for another term.
Ask about early exit penalties: Some agreements allow early termination with a fee (forfeiture of bond or payment of remaining months). Others lock you in with no exit. Get this in writing.
Pro Tip: If your business is growing fast or facing uncertainty, negotiate a shorter initial term with an option to extend at the same rate. This gives flexibility without losing pricing power.
How Are Fee Increases Handled?
Why This Matters
Unlike traditional leases with formal rent review clauses, serviced office providers in Australia may increase fees at renewal or even mid-term if the agreement permits it. Some apply fixed annual increases (3 to 5 per cent), while others adjust to “market rate” with minimal notice. Without understanding the increase mechanism upfront, your budget can be disrupted unexpectedly.
What to Check
Ask whether increases are capped or fixed: Check if annual increases are tied to a fixed percentage, CPI indexation, or left to the provider’s discretion.
Review the renewal pricing clause: Some agreements auto-renew at a new (higher) rate unless you negotiate before the renewal window closes.
Get increase terms in writing: Verbal assurances like “we don’t usually raise prices much” are not enforceable. Ensure the cap or mechanism is documented in the agreement.
Pro Tip: If you’re signing a 12-month or longer agreement, push for a fixed rate for the full term with any increases only applying at renewal.
What Happens If the Provider Relocates or Closes?
Why This Matters
Because a licence doesn’t grant exclusive possession, some providers reserve the right to move you to a different office within the building, or even to a different location, with relatively short notice. If the provider loses their own head lease or goes out of business, your agreement may offer limited recourse.
What to Check
Read the relocation clause: Ask whether the provider can move you to a different suite or floor and under what conditions (comparable size, same building, reasonable notice).
Ask about business continuity provisions: What happens to your agreement if the provider exits the building, is acquired, or becomes insolvent? Is there a transition plan or early refund mechanism?
Check the bond refund process: If the provider terminates or relocates you involuntarily, confirm whether your bond (typically one to two months) is fully refundable and within what timeframe.
Pro Tip: Providers operating in major CBD buildings with long head leases (10-plus years) are a safer bet than those in short-term subleased spaces.
Is GST Included in the Quoted Price?
Why This Matters
Commercial office space in Australia is subject to 10 per cent GST. Some serviced office providers quote prices inclusive of GST, while others quote exclusive. A difference that adds 10 per cent to your actual outlay if you’re not GST-registered or don’t check. For GST-registered businesses, this is claimable as an input tax credit, but it still affects cash flow and must be budgeted correctly.
What to Check
Confirm whether quoted prices are GST-inclusive or exclusive: This should be clearly stated on any proposal or rate card. If it’s ambiguous, ask directly.
Request a valid tax invoice: Ensure the provider issues proper tax invoices with their ABN so you can claim GST credits on your BAS if applicable.
Factor GST into your comparison: When comparing providers, make sure you’re comparing the same thing. All-inclusive, GST-inclusive monthly cost per person.
Pro Tip: If you’re a startup not yet registered for GST (under the A$75,000 threshold), remember that GST on office rent is a real cost you cannot recover. The GST-inclusive figure is your actual expense.
What Is the Internet Speed and Reliability?
Why This Matters
Internet is included in almost every serviced office package, but quality varies. Shared connections across multiple tenants can slow dramatically during peak hours. For businesses that rely on video conferencing, cloud platforms, or large file transfers, bandwidth and uptime matter as much as the headline “fibre internet” claim.
What to Check
Ask about dedicated vs. shared bandwidth: Is your office on a shared connection with other tenants, or do you get a dedicated line? What speeds are guaranteed?
Check the backup and uptime guarantee: Ask whether the provider has a redundant internet connection and what their uptime commitment is (say, 99.9 per cent).
Test the connection on-site: Run a speed test during a site tour, ideally during business hours. Check mobile signal strength inside the office.
Pro Tip: If your team is larger than 10 people or you handle sensitive data, ask whether you can install your own dedicated fibre line and whether the provider allows it under the licence agreement.
Can I Scale Up or Down During the Agreement?
Why This Matters
One of the big advantages of serviced offices is scalability. But the terms of that flexibility vary. Some providers allow you to add or reduce desks mid-term with short notice. Others lock you into a fixed desk count for the full agreement. For growing businesses or teams with hybrid or seasonal fluctuations, this can make or break the value of the arrangement.
What to Check
Ask about desk scaling provisions: Can you add desks during the term? Is there a minimum notice period or a premium for mid-term additions?
Clarify downsizing rules: Can you reduce desks if your team shrinks? Is there a penalty, or does the adjustment only take effect at renewal?
Check availability in the building: Even if the agreement allows scaling, desks need to actually be available. Ask about current occupancy and waitlist situations.
Pro Tip: Negotiate a “right of first refusal” clause for adjacent or nearby office space in the same building. It protects your expansion options without committing to extra cost now.
What Are the Building’s Access Hours and Security?
Why This Matters
Not all serviced offices offer 24/7 access. Some restrict entry to business hours (8am to 6pm weekdays), with after-hours access requiring additional arrangements or fees. For teams that work early mornings, late evenings, or weekends (common in tech, creative, and client-facing industries), restricted access can be a dealbreaker.
What to Check
Confirm access hours: Ask whether you have 24/7 access to your office or whether access is restricted to standard business hours only.
Understand after-hours access procedures: If after-hours access is available, is it via key card, code, or security escort? Is there an additional fee?
Check security provisions: Ask about CCTV, building entry systems, on-site security, and whether your individual office is lockable.
Pro Tip: If after-hours access is important to your team, visit the building outside business hours during a trial period. Lighting, safety, and building services can feel very different at 9pm.
What Do Current Tenants Say About the Experience?
Why This Matters
No amount of marketing material replaces real tenant feedback. The day-to-day experience (management responsiveness, noise levels, cleanliness, actual internet reliability, how quickly maintenance issues are resolved) only becomes visible once you’re in. Speaking with current or former occupants gives you an honest picture that sales teams won’t volunteer.
What to Check
Ask the provider for tenant references: A confident provider will happily connect you with existing tenants. Reluctance to do so is a red flag.
Check online reviews: Search Google Reviews, ProductReview.com.au, and industry forums for feedback on the specific location (not just the brand overall).
Ask tenants specific questions: Focus on responsiveness to maintenance requests, actual internet performance, noise insulation between offices, and whether any unexpected fees appeared after move-in.
Pro Tip: If possible, do a short-term trial (a day pass or week-long booking) before committing to a 6 to 12 month agreement. Most providers offer this, and it’s the best way to test the real daily experience.
Final Thoughts
Signing a serviced office agreement in Australia is simpler than a traditional lease. But “simpler” doesn’t mean “risk-free.” Asking these ten questions upfront ensures you understand exactly what you’re paying for, what flexibility you have, and what protections you’re entitled to. Even licence agreements deserve a careful read. A short consultation with a solicitor or commercial property advisor is a worthwhile investment before committing. The right serviced office should simplify your operations, not create new surprises.
