4 Questions To Ask Yourself When Finding Furnished Office Space For Rent
Are you a business owner or an entrepreneur searching for a suitable furnished office space for rent in Singapore? Probably your lease contract is about to expire, and you are planning to move to a new office building. If you are in any of these situations, then it is important to create a checklist. To get the best results, ask yourself some relevant questions, and with that, you will be able to make the right moving decision.
Getting the ideal office space to suit your business needs can be tasking because there are a lot of important factors that you need to consider before settling with a particular place to rent a furnished office space. In some cases, certain needs or scenarios might not cross your mind. However, with the right preparation and foresight, you can lay your grip on all that needs to be done.
Below is a list of top four questions you need to ask yourself while searching for furnished office space in Singapore.
Are You Ready To Pay for Takeover Fee?
It is common to find most of the office spaces in Singapore in bare condition. Property owners prefer to have their offices leased in this condition because every business has its unique functions and requirements as it concerns office layout and design. To this effect, the office lease agreement in Singapore features a reinstatement clause that requires outgoing tenants to return their office to its original condition before the expiration of their lease contract.
You can come across furnished offices because they are put on the market while awaiting the lease expiry of the current tenant. If any incoming tenant is satisfied with the fit-out of the office, they typically deliberate with the existing tenant and try to persuade him to leave the fit-out and the furniture behind.
The cost of fitting out an office space in Singapore can be high. Assuming the furniture and renovation are still in good shape, the moving occupant may ask for a takeover fee. In some cases, the moving occupant may adopt a five years depreciation formula to determine the exact amount you must pay. For instance, if the expenses made by the old tenant in fitting out the furnished office is $500,000, and he has been an occupant for three years, the takeover fee will be $300,000 / 5 years × 2 years. So, the takeover fee you pay is $120,000.
Would You be Flexible in Your Date of Possession?
Most furnished office spaces available for rent are not ready for immediate occupation.
The easiest way to get a rental office space with fitted condition is to look for one with an expiring lease. Since the outgoing tenant will be occupying the office till the lease expires, you are only allowed to take possession of the contract expiration of the old tenant. Therefore, the date of availability for possession is largely dependent on the expiry of the lease.
In a scenario whereby the landlord does not have a new tenant taking the office space in the fitted condition, he usually issues a request for the tenant to restore the office to its initial condition before the lease contract ends. This request is normally made 30 days to the lease expiration. To this effect, the tenant reinstates and delivers the office space in the same condition it was before moving in.
Are You Willing To Exercise Flexibility in Your List of Office Requirements?
There is a popular misconception that office spaces on the rental market are in furnished condition There may be a small percentage of the inventory in furnished condition. But these offices vary in terms of floor areas starting from a few hundred square feet and extending to tens of thousands of square feet.
When you start creating your checklist to narrow down to what you want, you will find out that the available office spaces that match your specifications are not many. For instance, the Central Business District may have just about 10 to 15 offices that meet your personal preferences like rental budget, floor area, and building quality.
As you narrow down to only furnished office spaces, the list gets thinner. Most times, you won’t have more than five options to pick from. In some cases, you won’t find any; this usually happens when the economy is booming, and the demand for office spaces is high.
This means that you need to be flexible while trying to rent furnished office space in Singapore. You can be less stringent when considering factors like location, building design, and grading.
Can You Settle For An Office Space in Bare Condition?
The truth is that you may not find a furnished office space for rent in Singapore, even if you get all the processes right. Finding a furnished office space that fits into all your requirements can be difficult and is largely dependent on timing and availability.
Most business owners start their search with hopes of finding a perfectly furnished office space that matches their business operations. However, they aren’t always lucky. Following the hard weeks of searching and inspection processes, most entrepreneurs discover that it is almost impossible to find and rent furnished office space that suits all their needs.
Resultantly, they opt for bare office space and engage the services of a qualified commercial renovation contractor to map out, design, and upgrade the office to match their business requirements.
While finding a furnished office space for rent in Singapore may be difficult, every attempt made towards getting one is worthwhile. Hiring a commercial property agent to assist you in finding a furnished office space will be an excellent idea.
We are certain this guide will point you in the right direction when you wish to rent furnished office space in Singapore. Our platform also provides you with available options, so you might want to check it out!
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