Enter the quoted monthly rent to see whether it sits below, within or above the typical band — and what the rent-to-revenue ratio means for the deal.
How it works
Two signals. One decision.
The checker runs two independent tests: (1) is the dollar figure above market for comparable tenancies, and (2) does it pass the rent-to-revenue ratio test for your business type. A rent can be within typical range but still fail the ratio test — or look expensive but pass it because your category commands high revenue.
Market comparison
Checks your quoted rent against typical asking rents for comparable tenancies (city + suburb zone + business type). Ranges draw on commercial listing data and CBRE/Colliers market reports.
Rent-to-revenue ratio
Divides your rent by the typical monthly revenue band for your format in that zone. Same ladder as Locatalyze reports: ≤14% PROCEED, ≤18% VERIFY, above that AVOID.
Maximum viable rent
Calculates the ceiling rent that keeps your ratio at 14% of that revenue band — your negotiation target before margins get thin.
Negotiation guidance
If the rent fails the ratio test, the tool shows how far to negotiate and which clauses (rent-free period, CPI cap) reduce effective cost without changing face rent.
About these ranges. These are indicative bands from listing aggregates and published surveys, not live listings for your exact suite. They reflect typical asking rents for a standard 80–120 sqm tenancy, not specific addresses, sizes, or fit-out conditions. A premium corner with 12m frontage will always be above range; a second-floor space with no signage rights will be below. Verify with 2–3 comparable live listings from REA or commercial agents before using this as a negotiation anchor. For a full address-level verdict — including competitor density, foot traffic, and whether the location can generate the revenue the rent requires — run a Locatalyze report.
Common questions
Rent-to-revenue, answered
How much rent can I actually afford?
Work backwards from revenue, not from what the agent quotes. Rent at or below 14% of monthly revenue is healthy for most Australian retail and hospitality formats. Between 14% and 18% is workable but leaves little slack. Above 18% the rent starts dictating the business, and above 22% most operators cannot trade out of it.
What is a good rent-to-revenue ratio in Australia?
The same 14/18/22% bands Locatalyze reports use. A café turning over $75,000 a month can carry roughly $10,500 in rent before it moves out of the healthy band. Service formats with lower cost of goods can sometimes carry slightly more; food formats with heavy wastage should aim lower.
The rent is above the range. Is that always a dealbreaker?
No — but it has to be bought with something specific. Higher rent is defensible when the site genuinely delivers more revenue: a corner position, a transport entrance, an anchor tenant next door. If you cannot name the reason the site earns more, you are paying for the postcode rather than the pitch.
Where do these rent benchmarks come from?
Indicative Australian ranges for roughly 80–120sqm tenancies, assembled from commercial listing data and published retail rent reviews for 2024–25, split by city and inner/middle/outer zone. They are a sanity check on a quote, not a valuation of a specific tenancy.
Does the quoted rent include outgoings?
Usually not, and this is where deals go wrong. Outgoings — council rates, water, insurance, building management, sometimes a marketing levy — can add 15–25% on top of base rent. Ask for the gross figure before you compare anything against these ranges.
How is this different from a full Locatalyze report?
This checks the price against a zone benchmark. A report checks the address: who competes within walking distance, what demand the catchment actually supports, and whether the revenue that justifies this rent is realistic for that pin.
Rent looks workable? Check the address next.
A fair rent is necessary — not sufficient. A Locatalyze report shows competitors, demand signals and a recommendation for the exact pin.