Short-term Rental of Singapore Office Space
In the recent years, Singapore has emerged out as Regional Business Hub of Asia and an important International Business Center, yet the growth of business organizations is not that great. With the growth in business, the demand for professional, economically viable and well-equipped work spaces has increased so as to handle the business needs effectively. One of the most challenging tasks which are mostly faced by the businesses is finding a work space that can be rented and can meet the initial and basic requirement to start a business and aid in its growth. Consequently, the popularity of business centers has increased as a great option for getting the best rental properties for starting the business. It is due to the fact that offer best services at economical costs, proper management of resources, flexibility in lease terms and providing a prestigious address for your business. Though you might have to pay a good amount for the services and convenience, you can also find the best suits within your budget.
In this article, you will get to know the relevant information regarding serviced offices rent in Singapore keeping major things like services, facilities, rental costs, lease duration and terms and other important information.
What are Serviced Offices?
Business centers or serviced offices are professional, ready-to-use and fully-equipped office spaces which are can taken on rent immediately and that too on flexible lease terms. Most of these offices are managed by experienced and specialized companies located in Singapore’s Central Business District. By availing these rental services, you get a prestigious address for your business, flexible tenancy duration and a wide variety of choice for suites.
The hiring authorities can also get benefitted by renting an individual office set up by availing additional amenities like utility rooms, reception, meeting rooms or conference halls and superior and well equipped IT infrastructure. The rental fees of such offices include base rent, security, office furniture, utilities etc. you will have to additional costs for availing additional services.
Who should opt for Serviced Offices?
The services offices are the best choice for the business that are:
- Looking forward to relocate from their current location and are seeking a provisional solution.
- Concerned with client-interaction and are looking forward to get benefitted by getting a prestigious and impressive business address.
- Business start-ups that are just entering the market to test its products and focus on carrying out the business successfully without any interference into facility management.
- Looking for an additional space for a small term project.
- Planning to downsize or expand unpredictably.
Most of the serviced offices are taken on rent by consultancy firms, start-ups, project teams and representative offices from different industries like IT, insurance or finance.
The major advantage of hiring the serviced offices is that the business gets a prestigious address of the A Grade buildings located in CBD locations that include Prudential Tower, Suntec City, One Fullerton, Singapore Land Tower, One Raffles Quay, UOB Plaza, Centennial Towers, Ngee Ann City, Cecil street, Raffles Place etc. the centralized location of these offices provides easy access to the facilities with respect to hotels, public offices, restaurants and banks etc.
- Instant availability of the work space with no initial investment for start-up and other requirements like office furniture, interior design, renovation, agency fees and equipments.
- Immediate availability of business support like administrative staff and secretarial services in addition to conferencing facilities and on-site meetings which are available on-demand.
- Prevents the expenditure of availing additional services as you are required to pay only when you use them.
- Flexibility in lease terms and agreements which are generally available for short time periods.
- Renting serviced offices generally hits the pocket hard as you are required to pay huge bucks and can prove to be expensive on a long term basis.
- Conference rooms, meeting rooms and other resources are shared which can be troublesome at times you such facilities might not be available when you need them.
- Renting these offices does not provide you an opportunity for personal branding so that you can decorate them as per your requirements both externally and internally.
- Renting such offices might also reflect the instability of the business and hence can be a negative point for your business. The business signage visibility is also low as it is only a small part of the wall of the business center. It is the biggest and major drawback of renting a serviced office.
Though the costs might seem to be higher in the beginning, but you need to remember that it includes the cost of almost all the facilities which are used by you and you would have normally paid when renting a traditional office. However, the overall cost of serviced office rents is dependent on several factors like location, size and term of lease. Though most of the serviced offices are located in CBD Singapore, there are various premium buildings such as One Raffles Quay that demands a higher price in comparison to others such as Prudential Towers. If you are looking forward to rent the work space for a longer term, say, one year or more, you can also negotiate on the rental costs.
If you have been looking for an overview of the costs of different workspaces depending on the seating capacity, here is a list that can be seen by you.
1-2 seats work space might range from SGD 1,600 – SGD 4,000 monthly, 6-10 seats work space might range from SGD 4,500 – SGD 10,000 monthly and so on depending on office location and business centers in Singapore.
These monthly costs cover the basic rent and basic services offered by the serviced offices. The additional services which are not included in the rental fees is charged on the basis of the use of those services. However, the charges of the additional services might vary with service providers. Before finalizing your decision for renting a serviced office, it is necessary that you determine the services which are covered in the rental fees and whose which are to be paid on use.
Lease duration & Security Deposit
The services offices usually provide you control on the term of the tenancy lease which can be from a period of three months and can be up to even one year. However, you can avail the benefits of being in a long term. With such facilities you can either down-size or up-size your business as per your requirements at a short notice and subject to availability any time. The only thing that you need to do is to sign up for a new lease and make deductions in case of down-size from the lease security deposit or add to it whatever the case may be. Moreover, you will not be required to pay any additional administrative cost for upgrading the lease security deposit.
Most of the Singapore’s serviced offices ask for a rental deposit from the businesses which can rental fees for up to 1-3 months in advance. This initial deposit is refundable and is returned back on a written request or termination of license agreement. You can get it at the end of the lease only if there are no due payments and you leave the office in the desired condition. The deposit can be forfeited on the pre-mature termination of the contract. No other form of assurance or guarantee is required when signing the lease agreement which limits the liability.
Common Lease Agreement Terms & Conditions
The lease agreements of serviced offices are straightforward and simple. They are free from stamp duties and other legal bills. The commonly used terms in the lease include:
- License – provides the license or the right to occupy the office or workspace for a fixed tenor
- Licence Fee – the amount of fees to be paid on monthly basis, payment date and payment method
- Pay-and-use Service Fee – it specifies the total amount of fees which should be paid for utilizing the additional facilities, payment date and other terms related to it
- Security Deposit – this term states the situations in which the licensor can withhold the security deposit and also provides information regarding the situations in which it can be refunded to the licensee.
- Insurance – it states that the licensee has all the rights to get his goods insured and the licensor is not held responsible
- Government charges, taxes and rates– are to be paid by the licensee, if any
- Use and care of premises – states the steps which can be undertook by the licensee to maintain the office premises leased
- Use of equipment – terms and conditions
- Termination – includes notice period and other relevant terms
Payment & Moving In
As soon as you sign the tenancy agreement and make the required security deposit, you get the right to move in the work space any time and initiate your business.
Choosing Among The Business Centers
Most of the businesses prefer to rent serviced offices when relocating to Singapore. There are many service providers who can provide you the best services. However, the choice of the service provider mainly depends on your business specific needs and search criteria as well as your budget. The service provider that offers you the best services within your budget is surely going to be the best choice for you.
If you are into IT business or hold a consultancy firm, your basic business requirements might include High Speed Broadband internet, extensive computer usage, Local Area Network connection and a support staff that would deal with the problems. Any service provider that does not provides these services will surely be not on your list. Similarly, if your business is related to customers and you need conference and meeting rooms, it is essential to check out the cost of the services the service provider might charge from you.
Another major consideration when selecting an office space is the location of the building. Though you might find most of the availability in the grade A buildings of CBD, you might also go for the premium buildings like Centennial Towers and One Raffles Quay. Hence, you should first check out the service providers and make sure that they can offer you the right location which you have been looking for your office.
After evaluating your requirements and comparing the services offered by the service providers, if you think that most of them are similar, then the determining factor will be the competitive prices. Seeking quotes from the top notch service providers is one of the best ways to compare costs and grab the best deals. You should also prefer to visit the location so as to have a look at the office and the facilities available.
For those who are willing to relocate to Singapore and are looking for a location, renting serviced offices can be a great option as it offers convenience as well as flexibility. The businesses can get into contract with minimum paperwork and formalities. However, it is necessary that you evaluate the positive as well as negative points of renting the office so that you can take an informed decision. Renting such offices is an expensive deal and hence you should take time before taking a decision. Services and price comparison is the best option to reach to the right decision. Another important thing in the process is to read the Lease Agreement carefully and understand all the terms and conditions before signing it.