Should you rent a serviced office in Singapore?

If you are coming to Singapore to set up a new office or complete a short-term project or you are already in Singapore and your business is in a period of transition, renting a serviced office may be an option that you should consider.

Who should rent a serviced office in Singapore?

In general, you should consider a serviced office if you:

• Are a start-up, a consultancy, a representative offices or a project team.
• Need a temporary space as you plan to change locations soon.
• Want to have prestigious office address in a central location.
• Are unsure as to whether you will need to expand or contract the size of your operation.
• Have a short-term term project and need additional office space.

What are the advantages of a serviced office in Singapore?

There are several key advantages to renting a serviced office when in Singapore, namely:

• There will be little in the way of start-up costs for fit-outs or brokerage fees to pay.
• There will be little in the way of hidden costs that are associated with setting up or running an office.
• Lease terms are more flexible and can be short-term.
• You will likely have an address in a Grade A building in Singapore’s CBD.
• You will have onsite support services such as conference room facilities and admin help when you need it.

What are the disadvantages of a serviced office in Singapore?

However, there can also be some disadvantages to renting a serviced office when in Singapore, namely:

• Rental costs may be more expensive over the long-term.
• You will not be-able to extend your personal brand to your office space.
• There is less visibility for your business as it is unlikely to appear on the building’s directory. 
• Shared facilities may not be available when you need them.
• Some of your customers or clients may perceive your business to be unstable or small.

Rental costs and terms:

Most serviced offices in Singapore will ask you to pay a refundable rental deposit, usually 1-3 months, prior to occupation. Otherwise, the cost of renting a serviced office with vary according to:

1. Location of the serviced office
2. Size of the space
3. Duration of the lease
4. Types of additional services you use

Monthly rental costs will cover basic services/facilities while other additional services that are not covered in your rental fee will be charged on a pay-per-use basis. 

Some final advice:

If you are setting up a new office in Singapore or you are in a period of transition and want a convenient and flexible option for office space, than a serviced office may be the right option for you. However, it is still important to weigh the pros and cons of renting a serviced office, especially for the long term, and to fully understand the terms of the lease that you will end up signing.