Small business (Australia) first time taking a commercial lease, scared about fit-out costs and location, two options

General

I'm based in a mid sized town in Australia.

Looking to start my first retail business, there's absolutely nobody catering to what I'm offering in any of the local areas, around 80,000 people in surrounding suburbs, 8500 in my suburb, no competing shops for my products. I will be doing events and there is a limited amount to do in my area or surrounds.

There is really one main strip in my area, but the vast majority of cafes and thoroughfare are on one side of the road. We are a tourist town and some percentage of what I'm offering will be appropriate for impulse purchases by tourists, though my main business will be serving locals (and as mentioned I will be doing events for my niche).

I have two options for premises

Option 1

- higher rent (20% higher)

- busy side of the road, closer to the transit

- formerly business office space which needs a full retail fit-out. Likely to run me 10s of thousands more.

- more secure (I have high value stock)

- no businesses or residential above

- larger premises (140sqm vs 75sqm), but the shape is a bit long and thinner (4.3 metres wide)

- Flat glass front, much worse for signage

Option 2

- lower rent (20% lower)

- 30% of the foot traffic, but on the same main road.

- Formerly a retail space so tens of thousands less fitout required

- Less secure, business premises above

- Nicer looking property

- Further from transport

- Has retail friendly shop dressing layout without a flat front

What would you guys do in this scenario? Has anybody been in my shoes before? If I were to guess I am looking at 65k AUD fit-out for shop 1 and 30K AUD fit-out for shop 2.

Posted Jan 25, 2026, 4:28 AM UTC

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