Pros

Cons

[x_icon type=”plus-square-o”] Comes fully furnished and equipped

[x_icon type=”plus-square-o”] Low capital expenditure

[x_icon type=”plus-square-o”] Higher accessibility

The office is managed by specialized companies and is fully-equipped with amenities such as reception, IT infrastructure, mail support, internet connection, printing services, meeting rooms, office cleaning, pantry and more. This makes working conducive. Furthermore, conference rooms and meeting rooms which were previously too expensive can now be made accessible on a pay-as-you-use basis.

Since they are available immediately and requires low capital expenditure, there is no need to plan out long-term rental finances. In fact, the rent can be fixed on a monthly basis for more flexibility. This also allows you to take up more or less space as you scale up or down. This makes business centres popular with startups, particularly those with unpredictable growth, or those operating in an unstable market.

As the office is located in the CBD area, it is easily accessible by both employees and clients. Choosing one that is close to the MRT can be very helpful too. Beyond convenience, the prestigious business address can also generate more credibility for your business.

[x_icon type=”minus-square-o”] High rental cost

[x_icon type=”minus-square-o”] Higher cost in long run

[x_icon type=”minus-square-o”] Shared amenities may result in inefficiencies

With all these amenities, rental prices can be steep. Depending on the location, a business centre that can house around 3 employees can cost between SGD$2,000 to SGD$3,000 a month, with add-on facility costs ranging from SGD$20 to SGD$50 an hour. As evident, while the initial capital required is low, costs do add up and can be expensive in the long run. This makes business centres a good temporary rental option as opposed to a long-term one.

As resources such as meeting rooms are shared amongst the various tenants, there is a need to book the facilities well in advance. You may also need to queue and wait to utilize common resources such as printing services. All these can become a hassle over time.

Pros

Cons

[x_icon type=”plus-square-o”] Freedom to refurbish and renovate

[x_icon type=”plus-square-o”] Lower cost in the long run

[x_icon type=”plus-square-o”] Longer tenures

Conventional offices give you the freedom of designing the space within the rental guidelines. With that, you have more control on the overall look and feel of your office by using your unique corporate colour scheme, incorporating your mission and vision, do up the pantry according to employees’ tastes and preferences, name your meeting rooms according to your core values and create your own office layout. By customizing the overall aesthetics, not only will employees feel more at home, but clients can also form a better impression of the company.

While the initial capital outlay required is high, it can actually be less costly in the long run. In fact, if you don’t have to meet your clients in the office, there is no need to spend too much money on furnishing. A bare-bone office can prove to be even more cost-effective.

As compared to business centres, conventional offices have a longer-term tenure and can hence provide a greater sense of security. Furthermore, lease renewal is more often than not set at a predetermined rate. The peace of mind stemming from the knowledge that relocation will unlikely happen in the short term can minimise disruptions in your operations. This allows the team to focus on propelling the business forward without unnecessary distractions.

When renting commercial buildings owned by the government, Jurong Town Corporation (JTC) can be a good provider to consider. They can offer technopreneur centres, incubators, business parks, warehouse space, and even industry clusters such as that in the Jurong Island chemicals hub. You can also find out how to rent factories on their website.

[x_icon type=”minus-square-o”] Long minimum lease periods

[x_icon type=”minus-square-o”] High capital expenditure

[x_icon type=”minus-square-o”] Additional costs may be incurred

Typically, private office space rentals require a minimum lease which spans over two years. This can be too big a risk for startups in an early growth stage when survival and expansion are both unpredictable. There is a need to handle various business-related operations including phone answering, utilities, IT maintenance, housekeeping and more. Researching, sourcing, shortlisting, and deciding on the perfect building can be challenging. There may also be a need to hire an agent for this as negotiations on lease terms take skill and time.

With an empty office, there is a need to spruce up space with a set of utilities, IT infrastructure, furniture and more. Business-related operations such as phone answering, maintenance and housekeeping will also need to be handled by the company.

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