Singapore Office Space Guide 2023
By Varun Bodhi
Are you overwhelmed with choices after Googling “office space to rent near me?”
Finding office space in Singapore is a pivotal decision every business makes, and it holds great value; after all, it’s a major investment that can make or break your success. In fact, they're equally as important for individuals of wealth in search of a family office.
Many businesses commonly struggle to select between a traditional office or flexible workspaces such as coworking spaces, serviced offices, and virtual offices, but we’re here to guide you.
Physical workspace serves as a foundation for organizational culture and operational activity, so it’s paramount to be informed on what works.
Let’s explore why Singapore is a great business destination and how to find an ideal office space for your operations.
Why Singapore is ideal for business
Singapore is globally renowned as one of the easiest places to do business, with a score of 86.2 Various factors that determine this, but the World Bank has disclosed Singapore’s regulations are friendly.
Every country has its own formal and legal process that determines its friendliness. Singapore’s incorporation process is fast, and the documentation is straightforward without creating unnecessary complications.
Tax
It also has a 17 percent corporate income tax rate, which is 6.37 percent lower than the global average of 23.37 percent. This makes Singapore an ideal and lucrative head office location because of the significantly lowered tax rates.
Geographical advantages
Businesses in Singapore also have access to key markets and this geographic advantage can’t be understated. The country is at the crossroads of major shipping routes in Southeast Asia and serves as a gateway to the fastest-growing markets of that region.
Many countries recognize Singapore as a reputable business destination and are more inclined to work with Singaporean businesses. Conveniently, Singapore’s time zone overlaps with major financial centres such as Asia, Europe and Australia, which makes global collaboration seamless.
Political stability
Not many companies consider political stability when establishing their business, but luckily Singapore has a strong commitment to the rule of law. The nation’s environment is conducive for companies to operate stable and predictably; a major advantage for those seeking long-term prosperity.
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The Cost of Office Space in Singapore
Conventional office space occupancy is healthy in Singapore, however, costs have increased by 3-5 percent in the past month. The country has a strong demand for office space, especially from multinational companies looking to relocate and set up headquarters.
Determining the cost of office space is critical to planning your business’s future. On average, prime-grade office space in Singapore costs $11.05 per square foot per month. The industry average office space per person is 200 square feet, equating to approximately $26,520 of rent per employee annually.
Combine this cost with outgoings, salaries, technology, and furniture, and overall expenditure quickly increases. Alternatively, flexible office spaces are on the rise in Singapore and are becoming the favoured option amongst businesses of all sizes.
Coworking Spaces in Singapore
Singapore’s coworking market has tripled since 2015.
Around 41% of coworking spaces are occupied by freelancers, while 36% are corporate workers from large companies. It’s a space where flexibility, productivity, cost-effectiveness, and networking live under one roof – a powerful ecosystem.
Coworking in Singapore is an excellent avenue for accessing high-quality and professional workspaces without the major costs or lengthy leases.
Average cost of coworking spaces in Singapore: USD $295
Risk level: Low
For example, coworking at the Marina Bay Financial Centre is a central and reputable location that can attract many clients and top talent. A hot desk can be rented for $152 per month and the lease options are flexible, which is generally never possible with a traditional office in prime-grade space.
Look for these services in your coworking space:
- Premium address and location
- Fast Wi-Fi with customisable security options
- Dedicated receptionist to answer company calls
- Secretarial assistance
- In-house IT staff
- Storage facilities
- Showers
- Shared kitchen
- Access to meeting rooms and boardrooms
All of these features are included in the rental cost at a Servcorp coworking location. This mitigates the large capital businesses would otherwise spend and speeds up the working process as soon as people sit at their desks – everything is ready.
Coworking spaces are usually occupied by marketing companies, creative agencies, accountants and many other professionals. Before signing up, browse the best coworking spaces in Singapore to ensure you’ve selected a location that suits your business best.
People who read this article also read How to Choose Office Space in 2023.
Virtual Offices in Singapore
Often a favourite amongst international companies looking to gain a presence in Singapore, the virtual office has many uses. Whether a business is looking to establish a local presence or expand with a low-risk option, virtual offices in Singapore are a great workspace alternative.
Cost: Variable
Risk: Very low
Flexibility: Very high
In essence, a virtual office provides all the amenities of a traditional office without the physical space. This is an adept solution to support remote workers with professional services, or for multinational companies that are testing the market.
Virtual office addresses such as CapitaGreen, The Metropolis Tower 2 and Suntec Tower 3, are all locations that will impress potential clients. Always consider how the address will alter someone’s perception; the first impression counts!
Virtual offices in Singapore are commonly used by:
- Freelancers
- Consultants
- E-commerce
- Accountants
- Tech companies
- Realtors
- Marketing agencies
Other industries can also use a virtual office by utilizing call answering services.
Serviced Offices in Singapore
Serviced offices in Singapore are the closest alternative to a traditional office because of the physical features. They offer flexible sizing to accommodate as many employees as a company needs, and this makes the process of expansion simple.
Cost: From $1,350 per month in prime-grade buildings
Risk: Low
Flexibility: High
Serviced offices in prime-grade buildings are commonly accompanied by panoramic views and amenities that make them stand apart. If you’re searching or opting for a serviced office, other than researching features, ensure to look at the provider's stability.
Before selecting a serviced office, consider the following:
- Location & accessibility: It's important to consider the proximity to your target market or clients. Being close to them can make it easier for you to meet their needs and build strong relationships.
- Size: Evaluate your current and future requirements before signing up. Businesses are malleable and the perfect office space will accommodate this need.
- Infrastructure: A stable and fast internet connection is vital for efficient communication and productivity. But safety matters more and your serviced office must have VLANs or VPNs available.
- Layout & design: Many flexible workspaces try to mimic the environment of a coffee shop to present a laid-back office. Always consider the implications of design because it directly correlates with first impressions. Opt for professional-looking serviced offices like at Servcorp instead of picking a space that only prioritises aesthetics and free drinks.
These spaces are occupied by many industries, such as law firms, banks, brokers, and finance-related professionals.
Looking for an office space? Check out why an MBFC Office Rental could be your ideal location.
What are the best office space locations?
Undoubtedly, some of Singapore's best office space locations are on Marina Boulevard, North Buona Vista Drive, Temasek Boulevard, and Market Street. These buildings are in the heart of where business thrives and are near many amenities.
Gyms, restaurants, hotels, parks, and shopping centers are abundant in these areas, which adds convenience for clients, your team, or anyone visiting. Flexible workspaces in these areas often host networking events or workshops, which are great for gaining new connections or learning more about your industry.
