Trying to understand how our offices rental market works? You’re in luck! We’ll share things that you’ll need to be aware of, such as hidden costs and rental prices.
Let’s begin by exploring Central Business District, the premier locale that hosts prime office units in Singapore.
Central Business District
Singapore’s Central Business District, commonly known as CBD, is home to many prestigious internationally known financial and business buildings. These include Capital Tower, Marina Bay Financial Centre, Ocean Financial Centre, One Raffles Place, UOB Plaza and the list goes on. Most of the prime central buildings are owned by a single landlord and are part of REITs (Real Estate Investment Trusts).
The offices in the CBD are a popular choice for rent for its established public transportation and connectivity, which makes commuting for staff and clients a breeze. The diverse institutes in the vicinity also make for excellent networking opportunities. Popular eateries are easily found within the area, and they include Lau Pat Sat, which is well-liked by the tourists, Market Street Hawker Centre, and Amoy Street Hawker Centre.
As we embark on this journey to discover office spaces in Singapore, Paya Lebar, Woodlands, and Jurong also stand out as compelling destinations. Paya Lebar offers a dynamic environment, Woodlands provides strategic connectivity, and Jurong boasts emerging opportunities, collectively contributing to a diverse and vibrant landscape for businesses seeking prime office locations.
Now, let us look at the key elements to note when choosing an office space:
1. Rental Prices
It is important to thoroughly assess the office space you need as larger offices equates to higher costs. Making a preliminary estimate ensures that the offices we shortlist for you are best suited to your business needs.
The rental costs are affected by the choice of location. The costliest place to rent would be those in the CBD areas like Marina Bay and Raffles Place. This is a desirable and prime area for most businesses.
2. Location
Selecting the right location is a pivotal consideration when choosing an office space as it can significantly impact a business’s success. Influencing factors such as accessibility, visibility, and overall convenience. A strategically chosen location ensures easy access for employees, clients, and partners, contributing to operational efficiency.
Moreover, being situated in a well-established business district or a vibrant commercial area can enhance a company’s visibility and prestige. The local surroundings, including amenities, public transportation, and the overall environment, play a crucial role in creating a positive and conducive workspace.
3. Hidden Costs
Most of the offices come bare which means you will need to set it up before occupation. Planning, renovations and fitting out takes up a significate amount of time; not to mention the costs too. Amenities that you may need to think about including are the pantry, conference/ meeting rooms, workstations, etc.
Regular upkeeping of the office is also necessary to ensure the environment is conducive for yourself and your colleagues. These may include hiring cleaning services or cleaners and maintenance and repair of the air-conditioning units, washrooms, computers, servers, and the list goes on.
Also keep in mind that you will need to return the office in bare condition when you vacate it.
4. Networking Opportunities
It’s important to pick a place with plentiful networking opportunities where companies can build rapport and increase brand awareness with various industries. This comes in handy for corporate expansion and attracting potential leads (or even talents) for the business. I mean, who would say no to these?
5. Rent Free Fitting Out Period
Generally, tenants are given time to renovate their offices before they can begin operating on the premises. When representing you we will work to get the longest rent-free period possible, usually between 1 to 3 months as determined by the landlord.
Commercial Outlook
In 2024, the completion of new office buildings such as IOI Central Boulevard Towers and Keppel South Central is expected to boost office supply in Singapore.
Despite this surge, the demand may remain robust with a steady influx of family offices and overseas businesses drawn to Singapore’s strategic location, business-friendly environment, political stability, established infrastructure, quality of life, and attractive tax incentives. While a slight increase in rent is anticipated amid an improving economy, uncertainties linked to high interest rates and the condition of the tech sector may influence outcomes.
Ready to find a new office space? Vesper Homes is the only one in Singapore with a tenancy model that guarantees excellent property management. Our team will guide you through the whole process and help you get your deposit back by drawing up thorough condition reports. Reach out to contactus@vesperhomes.com for a stress-free experience now.