Things To Consider Before Signing A Commercial Lease For A Jewellery Studio

Opening a jewellery studio is exciting, but there are SO many hidden costs and responsibilities that people don’t really talk about. After signing my first commercial lease, I quickly realised there’s a lot more involved than simply paying rent and moving furniture in.

If you're thinking about opening your own jewellery studio, workshop space or storefront, here are some things I personally learned very quickly.

This blog post is based purely on my experience.

Upfront Costs Add Up FAST

Before you are even officially approved by real estate, you may need to provide:

• Deposit
• Bond
• Financial information and bank statements
• Trade references
• Insurance certificates (public liability, contents & glass coverage)

For me personally, I needed:

• 2 months rent upfront for deposit
• 2 months rent for bond

That becomes a LOT of money very quickly.

Commercial Insurance

I already had insurance for my jewellery business and training, but I still needed additional insurance to properly cover:

• The building (glass)
• Contents
• Public liability
• Other business related cover

This involved speaking with an insurance broker and then sending certificates through to real estate. This can be very overwhelming.

Commercial Leases Are Different To Residential

One thing I quickly realised is that commercial leases are VERY different to residential rentals.

There’s no RTA style system protecting you the same way residential renting does.

You may want a legal team to look over your lease agreement before signing. Depending on how your lease is structured, this can cost anywhere from around $500–$1000 in Australia.

Some shorter leases may be handled internally through the agency instead.

You Can Still Be Waiting… Even After Paying Everything

Even after paying bond and deposit upfront, organising insurance and providing all your information… the space still technically may not be fully yours yet.

Which means you kind of sit in limbo waiting for legal documents to be signed while trying not to emotionally move into the building already.

During this stage it can be hard to organise:

• Electricity
• Internet
• Furniture deliveries
• Painting
• Fit outs
• Signage
• Equipment setup

Because technically… you still don’t fully have the keys.

Rent Usually Isn’t The ONLY Cost

Something else to look out for is “outgoings.”

Outgoings can include things like:

• Water
• Rates
• Electricity
• Maintenance
• Building related expenses

Make sure you ask what is included in your rent and what is separate.

Electricity & Internet Setup

You’ll likely need to organise:

• Electricity setup
• Internet setup + modems/routers
• Setup fees

In Australia, make sure you confirm the correct NMI number for YOUR tenancy so you aren’t accidentally paying for another shop’s electricity usage.

Also confirm whether your water meter is separated correctly from neighbouring businesses.

Ongoing Maintenance Costs

There are also ongoing little maintenance costs people don’t really think about, such as:

• Sliding door maintenance
• Fire extinguisher servicing
• First aid kit maintenance
• Cleaning products
• Vacuuming supplies
• General repairs

Things You May Need Inside Your Jewellery Studio

Depending on your setup, you may also need:

• Security cameras
• Laptop
• Front reception desk
• Workshop tables and chairs
• Display cabinets
• Lighting
• Cleaning supplies
• Bins
• Additional keys
• Extension leads
• Jewellery benches
• Computer and monitor
• EFTPOS/Square reader
• Signage

All the other tiny things add up too:

• Pens
• Sticky notes
• Mouse pads
• Storage containers
• Tape
• Cleaning cloths

My Biggest Advice

When looking at a commercial space, sit down and calculate EVERYTHING.

Even the tiny things.

Because while a rubbish bin or extension lead might not seem expensive individually, once you add together dozens of little purchases… it adds up very quickly.

 Try not to mentally move into the space before everything is officially signed.