Should You Rent An Office Space Or A Coworking Space?


Using office spaces isn’t as predominant as it used to be. You can currently choose to find a fully-fitted office in Singapore, parley the terms of the sublease, and rent the space. These office spaces can be found in a desirable Grade A office building such as the Marina Bay Financial Centre.

Conversely, you can opt for renting a section of a coworking space in a high-end office building in the CBD. Also, there are other workspace options that you can explore. Entrepreneurs who are still growing their businesses often seek a cheaper, smaller, and more flexible office space, which is quite different from what the big companies want.

This means that every start-up will have to choose between locating an affordable traditional office space in a good location and using a coworking space. In this article, we will be taking a deep dive into both options to help you find the best fit for your business. So, let’s get to it.

SHOULD YOU RENT AN OFFICE SPACE OR A COWORKING SPACE INFOGRAPHIC

Reasons To Consider A Coworking Space

Entrepreneurs, freelancers, and creative professionals sometimes resort to working in coworking spaces that can be found in prominent office complexes in Singapore. They do this to avoid the boredom and loneliness of carrying out their tasks in a coffee shop or at home.

A coworking space is a communal environment where numerous individuals garner to undertake various projects for their different companies. Most of the coworking spaces take the form of a lounge, a giant room, an office, or a string of connected rooms.

Coworking spaces offer amenities such as Wi-Fi access, conference rooms, private offices, kitchen areas, limitless coffee, and tea as well as furniture like tables, desks, chairs, and couches. Also, the management of coworking spaces can bring in guest speakers to conduct seminars, and they have trained receptionists who can take your company’s phone calls.

You also get to use standard office equipment like printers and enjoy the services of a reception team. Below are other benefits you get from using a coworking space in Singapore.

Coworking Space is All About Flexibility

Today’s business era has gone beyond small and large-scale organizations that situate their businesses in a particular area for an extended period. In the past, most individuals spend their careers in a single organization. However, the nature of economies presently gives room for a lot of changes to happen at any point; it could be a good or a bad one.

When companies go through a reformation process, they might decide to move employees to different locations. Since nascent companies usually have a limited budget and face lots of uncertainties, in the beginning, a coworking space might be the best option for them.

With this, they worry less about having a suitable office size as can they scale up or downsize as they see fit. They also enjoy the flexibility of moving their employees to various locations if needed, and the employees can work close to their homes.

High-Efficiency Rate

Coworking spaces serve as a good option for start-ups located in a home office. It helps them stay away from distractions that could be caused by kids, home cleaning and maintenance as well as special tasks that can pop up at any time.

If you move to a coworking space, you can concentrate on work, thereby enhancing productivity. You can gain access to most coworking spaces in Singapore anytime you wish to; therefore, you can use them whenever it is convenient for you.

Comfortable Working Environment

The design and arrangement of coworking spaces help to boost creativity and communal relationship amongst members. In Singapore, some of them have amenities and incentives such as reading rooms, gyms, colorful furniture, ample snacks and coffee, pet-friendly policies, and attractive decorations.

Would you like to take a break with a swim session? It is possible to find coworking spaces in CBD that offer this. Art galleries, meditation rooms, and lunch spots are also located within or around the coworking space, and this enables you to ease some stress once in a while.

It Offers Opportunity To Network

This is considered as one of the most valuable advantages of coworking because of the friendship and companionship which the members enjoy. Lots of coworking spaces promote cooperation, and this offers lawyers, clients, freelancers, potential partners, and a host of others the privilege to connect with each other.

Also, coworking spaces give startups room to interact daily with other individuals and businesses. With this, they can be able to tackle similar challenges together, thereby promoting growth. Members of coworking spaces have the opportunity to network over coffee or at events organized within the space.

Enhances Collaboration

This advantage has a positive correlation with networking because you are exposed to chance and opportunity if you use coworking spaces. A casual conversation you have with another member could lead to a long-term beneficial business relationship. Working close to others allows you to collaborate easily, and you might find and hire a talented person who will take your business to higher levels.

Cost Savings

Office rental in Singapore can be expensive. Also, you may need to spend money on office equipment, fitting out, furnishing, and utility payment. Some coworking spaces are turnkey ready, which gives you access to shared amenities such as conference rooms, office equipment, Wi-Fi, etc. With these things in place, you can pay more attention to growing your business.

For most startups and small companies, signing a three-year lease contract (a common practice amongst landlords in Singapore) can be costly, which may pose more risks to their businesses. This makes coworking offices a more viable option for them.

In addition, businessmen who travel a lot always opt for coworking spaces because they can pay daily, weekly or monthly rent. If you use coworking spaces, you will be charged based on the type of space and the contract duration. You can either rent a flexible desk, a dedicated desk, or a shared desk.

Members Get To Inspire Themselves

As mentioned earlier, coworking offices’ communal nature allows different startups, freelancers, professionals, businessmen, and artists to converge and work together to achieve business growth in their various organizations. Since they work in the same space, there is a likelihood that their goals and ambitions may align, which helps them to fight any common problems they may be facing.

Here, individuals with like minds employ their intellect, creativity, and motivation to work together in order to actualize their dreams. They inspire and mentor each other from time to time, and this helps to enhance business growth.

Promote Creativity

Coworking spaces promote creativity because you get exposed to other people’s views, which you can apply to your business. In some cases, swapping spaces or relocating to a new office can give you an energized mind to explore alternative options to accomplish your business goals.

This brings us to the end of the perks of coworking spaces. In the subsequent sections, we will evaluate the advantages of traditional offices.

Reasons To Rent An Office Space

By opting for private office spaces, businesses can design the office space to adapt to their specific needs. Most times, it entails the renovation and fitting out, designing and displaying banners and logos, buying and positioning furniture as well as playing music. A company that rents traditional office occupies the entire space by itself.

The case is different when you are using a coworking space because you have to share tables, desks, printers, kitchens, and conference rooms with other members. Since you have the entire space to yourself when you rent an office space, you need not make reservations for the conference room, put up with another company’s bad habits (if any) or worry about someone changing your furniture arrangement.

You are always in charge, meaning that you don’t have to seek permission from anyone to host a party or an event, play music, or entertain visitors. At this juncture, we will dig deeper into the advantages of renting an office space.

Better Working Relationships

In a traditional office, your employees can form strong working relationships amongst themselves because they will mostly like be working alongside each other day in day out. Also, they can work and interact directly with the manager, which helps increase productivity and resourcefulness in your company.

This makes your employees feel more relaxed and have a sense of ownership within the workspace. There is an increased satisfaction and dedication to work, which in turn yields positive results for your business.

Zero Privacy Issues

When you rent your own office space, it implies that everyone within that workspace is your employee. There are certain struggles that come with renting a coworking space; therefore, renting a traditional office might be a better idea. The privacy problems you might encounter in coworking spaces include:

I.   Physical

While using a coworking space, you barely have an idea of the people present. Your office could be exposed to the eyes of strangers, and they could hear the discussions you have with your clients. At times, the property managers conduct tours for prospective tenants, and this could generate noise along the hallways. You worry less about this inconvenience if you rent a traditional office space.

II.  Sound

In your company, you can easily control the noise level. However, if your neighbors are noisy, your hands will be tied. Also, try to caution your subordinates against noisemaking so as to prevent getting complaints from your neighbors.

III. Information

Having a traditional office is extremely important if you’re dealing with sensitive information such as people’s finances, personal backgrounds, government documents, and criminal records. It gives you the freedom to speak in your office without having to find a private or quiet place within a coworking space.

Also, you can conduct private interviews with new recruits without worrying about having questions asked by other businesses. Further, you won’t have to worry about the security issues that a public Wi-Fi network exposes you to.

Long Term Solution

Although coworking spaces are a good option while you are starting, as your business grows, you may want to have stable accommodation. Startups thrive well in coworking spaces because the environment enhances their growth process and flexibility.

On the other hand, as your business starts witnessing a steady growth, you might desire to have a permanent office space five or ten years down the line. Renting and settling into a traditional office space means you no longer have to go through the hassles of finding new locations, making arrangements, and paying moving costs.

Lower Rental Cost

In most cases, renting a traditional office space is more expensive than using a coworking space. But when your manpower begins to increase tremendously, it is financially advisable to opt for a traditional office.

For instance, if it costs $1,000 to rent a desk monthly in a coworking space, it means you pay $15,000 monthly to rent 15 desks for your employees. However, it is possible to get a larger and more comfortable traditional office space for a similar amount or less.

Establishes Brand Identity

Renting your own space means you enjoy the liberties of giving your office a facelift through renovation and fitting out. Also, you can put up your company logo or banner on the signage of the main entrance. After interviewing a prospect or when you invite stakeholders to visit, it will be more appealing if your space mirrors your company culture and values.

You can’t enjoy this advantage with a coworking space because the environment barely allows you to infuse the values and cultures of your company. A traditional office offers more comfort and security to your clients because you are in control of almost everything that happens. Also, you can adopt digital tools like Google Business listings to help prospective and returning customers to locate your company easily.

Having arrived at the end of this ride, we are sure that you have a good idea of the perks of coworking spaces and traditional office spaces. Both of them are unique in their own ways; therefore, their advantages and disadvantages are dissimilar. We recommend that you ask questions and check out different options before making any decision.

On the brighter side, you can use the services of a professional office finder. We have a team of experts who are dedicated to finding different coworking and traditional options while weighing the incentives and amenities they offer.

In essence, we help you make a better business decision. You get to enjoy the services of commercial real estate experts at no cost. So, you eventually rent a perfect space for your business and increase your productivity.

About Office Finder Singapore

Office Finder Singapore is the trusted resource by businesses when finding commercial real estate in Singapore. We offer comprehensive and up-to-date office space listings together with the information needed and professional expertise that help businesses move confidently throughout their business journey in Singapore.

If you’ve needed to find an office space for your new business, check out our list of office spaces for rent in Singapore or let us recommend an office real estate agent to assist you.

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