Flexible Office vs Lease in Melbourne: Contracts, Terms, Deposits and Tax (2026)
October 10, 2026 | by Michael Monday
In Melbourne the contract decides almost everything else: the term, the deposit, who fits out the space, and whether you need a local company to sign. This guide sets the three contract forms side by side and then covers what a company from abroad needs in place before it signs. Flexible space is quoted per desk per month; conventional leases are quoted per square metre per year. Both are before GST at 10%.
A membership or licence agreement, month-to-month or fixed for six to twelve months, with one month’s notice. One all-in monthly fee per desk covers rent, outgoings, utilities, internet, cleaning, reception and meeting-room credits; a deposit of one to two months is usual. GST at 10% is added.
Enterprise suite or managed floor
Twelve to thirty-six months for a dedicated floor the operator fits out and runs, priced per desk or per month, for teams of twenty and up.
Conventional lease
Typically three to five years, rent quoted in dollars per square metre per year as gross (outgoings included) or net (outgoings on top). Melbourne landlords commonly offer large incentives, rent-free periods or fit-out contributions, in exchange for the face rent. Security is usually a bank guarantee of three to six months’ rent, and the lease carries a make-good obligation at the end. Victoria’s Retail Leases Act can apply to some small premises even when they are used as offices, which changes the rules on outgoings and term, so check before signing.
Side by side
Flexible office
Managed office
Conventional lease
Contract
Licence or membership
Operator agreement
Lease
Term
1–12 months, rolling after
12–36 months
Years, with a break if negotiated
Fit-out
Done
Operator, to your spec
Yours to fund and remove
Price basis
Per desk per month, all-in
Per desk or per floor per month
Rent plus taxes, service charge, utilities
Deposit
1–2 months
1–3 months
Several months’ rent or a bank guarantee
Time to move in
Days to weeks
Weeks to months
Months
Setting up as a company from abroad
A foreign company can take flexible space with company documents and ID; longer managed-office terms may need an Australian entity or a guarantee.
To trade in Australia a foreign company either registers as a foreign company with ASIC or incorporates an Australian proprietary company, which needs at least one director who ordinarily resides in Australia and a registered office address. Directors need a Director ID. Virtual-office products from the operators cover the registered address.
An ABN (Australian Business Number) is required to invoice and to register for GST; registration is free through the Australian Business Register.
GST at 10% is charged on office fees and rent; a GST-registered business claims it back. Compare quotes on a GST-inclusive basis if your entity is not registered.
Who pays
Flexible space: the operator pays the introducer when a tenant signs; the tenant pays nothing and the rate is the same as going direct.
Leases: the landlord pays the leasing agent. A tenant representative for a larger requirement is paid by the tenant, usually as a share of the savings negotiated or a fixed fee.
SquareFoot lists 12 flexible office centres in Melbourne from 3 operators, collected October 2026 from the operators’ own published pages. Guide written by SquareFoot; last reviewed October 2026.
Frequently asked questions
Is a flexible office in Melbourne a lease?
No. It is a licence or service agreement for a fitted room with one monthly fee, usually one to twelve months and rolling after that. It gives no security of tenure and no fit-out obligation, which is the trade-off against a conventional lease.
Do I need an Australian company to rent an office in Melbourne?
Not for flexible space. To trade, a foreign company registers with ASIC or incorporates locally, which requires an Australian-resident director and a registered office. An ABN is needed to invoice and to register for GST.
Does the Retail Leases Act apply to offices in Victoria?
It can. Victoria’s Act covers premises used for providing services to the public, which has caught some small professional offices, and it brings different rules on outgoings, term and disclosure. Larger offices and most CBD leases fall outside it, but check with a lawyer before signing. Flexible agreements are not leases and sit outside the Act.
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The Melbourne office market explained for a company that has not rented here before: the operators and brokers, who pays whom, the three ways in and how long each takes. SquareFoot lists 12 flexible office centres in Melbourne from 3 operators, collected October 2026 from the operators' own published pages.
Melbourne's office districts and who sets up in each, with the number of flexible centres SquareFoot lists in every district and the published starting price where there is one.
What you actually sign for an office in Milan: the flexible licence, the managed-office agreement and the conventional lease, with the terms, deposits, tax and the paperwork a foreign company needs.