How Much Space Do You Need Tops the List When Leasing an Office in Singapore
So, you have finally chosen Singapore as your business base. What should you do next? Find office space, of course! Before you start Googling the optimal choices, let’s take a seat back and think things through, shall we? Singapore may be an island nation, and you might think anywhere is a good office location. Well, it all depends on your affordability. Space is a commodity in a country like Singapore, and the location of your office will ensure your possible success. Here is a general Singapore office premise leasing guide for your reference before making a decision.
Your Business, Your Office, Your Future
Among the crucial thing to know about leasing an office premise in Singapore, is that it goes hand in hand with your business paid-up capital. How much you can afford to pay the lease is tied to the paid-up capital of your business in Singapore. AS a business owner, you would want to be in the heart of every convenience. It is critical to you that you include business expansion in finding an office space. Indeed at the start of the business, you may only need a fraction of a full-fledged office. But, when you begin hiring more people on board, it may cost you more to find a new place to cater to additional staff. Thus, it is imperative at the beginning of a Singapore office premise leasing guide; you foresee the expandability of the office space you need.
You may have imagined a posh office in Singapore, but, you could probably do better with a simple workplace. All in all, let’s get down to the details of what you may need to lease an office premise in Singapore.
Your office workspace is critical to business efficiency. You will also need to take into account the number of employees you currently have or hope to have. Besides that, an office should also have a discussion room, reception area and utilities. Thus, it would be best if you were calculative with the space you want to acquire for your office ideally. It is also essential that you obtain an office premise with extra room to accommodate future growth.
Now that you have the ideal capacity for your office, you can now lookup the areas where your office will be. Again, take into considerations of your hires and clients. Since Singapore’s public transport is reliable, an office with such accessibility may be in high demand. But, will also gain the upper hand if your clients are nearby. They will likely choose you because of proximity.
Office Rental Rates
As mentioned before, the highly accessible your office is, the more likely the location is a premium choice. With that, the rental rates could reach sky high. Nevertheless, if you have decided there is more advantage to rent an office within an area concentrated with future clients, it could be the only choice. Otherwise, being just at the fringes of premium areas, the rental rates could be lower. Business parks could also feature affordable rental rates to new start-ups. If you desire a unique façade, low rise conserved building could be the right choice.
Costs to Lease
Well, now let’s get to the costs involved in renting an office space in Singapore. For newbies out there, it is not merely monthly rental costs. Monthly rental payments will be your regular costs when your business is in operation. The initial prices for renting an office space in Singapore are as the following:
- Security Deposit – the deposit usually equals to three to six months rental in advance.
- Property Tax – as the landlord or building owner pays such tax annually, it could be included in the rental contract.
- Legal or Administrative Fees – tenants generally will have to bear the cost of these fees for preparing the rental contract.
- Stamp Duty – The tenant is to pay up the stamp duty for the tenancy agreement. It can be paid within fourteen days after signing to the Inland Revenue Authorities of Singapore (IRAS)
- Renovation Deposit – When you rent an office, you may need to do some renovation works, and the deposit is to fix any damages done during the renovation works. If there is no damage, it will be returned to you upon complete inspection.
- Office Renovation Works – It all depends on how much renovation you need for your office. If it is a total makeover, then it may cost more. You would also need to research the type of fittings necessary for your office.
- Property agent commission – surely you would expect an agent to find you your office as they have vast experience and negotiation skills.
Other costs that will be included in the agreement will be car parking space, insurance, electricity and telecommunication bills, after office hour air conditioning, service fees and goods and service tax. All these will naturally be part of your monthly costs when your business is in operation. When your tenancy agreement is expiring, and you are shifting to another place, the landlord may require you to reinstate the office space to its original condition. It will be part of your moving-out cost. Nevertheless, the landlord might want to retain any renovation you have done. Ask your landlord about this issue early on, so that you will not be caught in a catch-22 situation.
Right, moving on to the process of renting an office in Singapore. Try to follow what you should do next to get an idea of how things work.
- Form a team. You should be part of the team. It should ideally consist of a human resource manager, office manager, finance manager and a rental agent. Establish the office requirements at this stage.
- Communicate daily until you find the ideal office space.
- When there is a list of available offices suited to your requirements, start selecting together as a team.
- Go for office space tour as a team to ensure everyone is on the same page. Bring a checklist of detailed requirements as you go from one office to another.
- Finally, you and your team have chosen an ideal office. Now, it is time for negotiation. Your agent will initiate this and work things out until they get an agreement.
- Your rental agent will submit a letter of intent to the landlord with all the essential terms of the agreement. The landlord will review and do a background check of your business. After the landlord is satisfied with everything, he or she will revert with a letter of offer.
- Upon receiving the letter of offer, you will sign it and return it together with associated fees.
- The landlord will now provide you with a tenancy agreement. Before signing, have it reviewed thoroughly by a legal counsel. Once you have signed the deal, duly revert with the security deposit.
- You may now take possession of the office space, as stated in the tenancy agreement. Any renovation works can begin as soon as you get approval from the landlord.
There you have it, the Singapore office premise lease guide complete for your future reference in finding your dream office in this country. Should any part of this guide baffles you, get in touch with us. We will help wherever necessary.