During a viewing this week, a tenant described a dilemma that many growing businesses face.
A bare office offered freedom to create a space from scratch, but the renovation bill was daunting. A serviced office was ready to use, but the monthly costs could rise as the team grew.
One meant a large upfront cost. The other could mean higher costs every month. Was there a better fit?
A third option: a fitted traditional office
A fitted office can offer the best of both choices: a professional workspace with an existing fit-out, room for your company identity and no need to start renovation from zero.
It can be a practical middle ground: less upfront work than a bare office and potentially lower recurring costs than a serviced office. Meeting room use and additional team members can add to the cost of some serviced offices, so check exactly what is included in the monthly rate.
Remember to consider the cost of leaving
There is another cost tenants sometimes overlook: reinstatement at the end of the lease. This can cost around SGD 25 to SGD 28 per square foot. For a 2,000 sq ft office, that could add up to SGD 50,000 to SGD 56,000.
In some cases, reinstatement may be discussed or waived if the tenant completes the first lease term. This is subject to the landlord’s approval and the terms of any future lease, so it is important to clarify the arrangement.
Where to find fitted offices
We are seeing more fitted office options in buildings such as Republic Plaza, King Centre, PLUS, ABI Plaza, CapitaSky, Keppel South Central, IOI Central Boulevard, Asia Square Tower 1, 78 Shenton Way and Visioncrest.
My takeaway
Do not compare offices by rental rate alone. Consider the full cost of moving in, operating the space, growing your team and eventually moving out.
The right office may not be the cheapest or the most impressive. It may be the one that gives your business a professional home with fewer upfront costs and more room to adapt.
Your next step
Thinking of moving? WhatsApp us your team size, budget, preferred area and timeline. We will shortlist suitable offices and arrange a free viewing.
