Understanding Furnished Office Space Rental In Singapore
Most small and medium-scale businesses moving to Singapore often ask the commercial real estate agent to help them find a furnished office space for rent. This allows them to kick start their business operations immediately without exposing themselves to the stress of setting up a fitted-out office. It is also cost-effective to go for this option.
As a result of the benefits they offer, fully furnished offices are highly sought-after by every business ranging from start-ups to fully established organizations.
Whether you are a mover in search of a small space to receive clients or a multinational organization looking to set up a new branch at a good location, the right furnished office space in Singapore will check all your boxes.
What Is A Fully Furnished Office Space?
A fully furnished office space features a well-finished interior with workstations and office furniture. Also, it may has other features like partitioned rooms for managers, conference rooms for meetings, pantry, a reception, guest host area and bigger offices may even have a breakout area.
However, more than 80% of the rental office spaces available for rent on the market in Singapore are in the bare condition. Light fixtures, fire sprinklers, air conditioning, and suspended ceiling board are standard condition. Most of them have white walls and cement screed floor (new buildings feature a raised floor system to enable easy cable management). So, most tenants come across this while trying to rent furnished office space.
Why Don’t Landlords Lease Furnished Office Space?
Usually, property owners have a preference for renting out their office spaces in bare condition. This is because they consider it easier to find a tenant in a bare office rather than a fitted-out office.
Different businesses have their individual requirements when come to furnishing an office space. A tech company looking for a furnished office space for rent would prefer an open layout plan fitted with rows of tables. They do not need office rooms. A meeting room and a breakout area together with the huge general office is perfect for them. Here, their engineers can communicate easily and exchange ideas since they will be sitting close to each other. This arrangement helps to foster teamwork within an organization.
On the other hand, a hedge fund may love to have the traditional closed plan structure since it offers privacy for employees.
A certain company may be able to structure 20 workstations coupled with a meeting room and two managers’ rooms on a 2000 square feet office space. Another organization may use the exact amount of space to fit 10 workstations, four rooms for managers, and a boardroom for 12 people.
As a result of these varying preferences among businesses, experienced commercial property owners know the challenges involved in getting the right tenant to rent furnished office space. This is why they leave the offices in bare conditions for tenants to fit-out to their individual taste.
More so, it is a major reason why lease agreements feature a reinstatement clause. This clause demands that moving out tenants should restore the office space to its original state upon the expiration of their contract. To this effect, rental office spaces are typically in the bare condition.
So, Is It Still Possible To Find A Fully Furnished Office Space For Rent In Singapore?
You must bear in mind that locating a perfect, fully furnished office in Singapore is largely dependent on timing and availability. Every fully fitted out office has its unique features, which means it was designed specifically for the moving out tenant and not you. There is a limited supply of such rental office space at every point in time.
While looking for available offices on the market, you will find these three major categories;
a) Office Ready For Immediate Possession
Office spaces ready for immediate possession are usually in bare condition because the previous tenant has vacated, thereby reinstated the office space to its original state. A large percentage of the inventory makes up this category, especially when the economy is lagging.
b) Office With Expiring Lease
This is the second category on our list. Most property owners put up the offices for lease six to nine months to contract expiry. They do this with the aim of finding a new tenant to occupy the space as soon as the current tenant moves out. With this, they get to avoid incurring losses caused by inoccupancy. Most of the furnished office spaces are in this category.
c) Office With Break Lease
In this last category, a tenant may be facing some challenges or choose to alter some things in his business plan, and this might result in exiting prior to the completion of the lease duration. Basically, this is the break lease office. Also, an entrepreneur can find fitted offices in this category, but they are commonly available when the economy is bad.
While searching for a furnished office space for rent, you must understand you have a better chance of finding fitted ones when you look for offices with expiring lease. Some of the moving tenants may agree to leave their furniture behind. However, you may have to pay a takeover fee in some cases.
If you are lucky, you can stumble upon a fully fitted office without having to pay a takeover fee. But you will not be able to ask the tenant to leave everything behind. The outgoing tenant has the right to move any furniture they need and leave behind the ones they do not want.
Why Couldn’t Some Businesses Find A Furnished Office Space For Rent?
Like newlyweds, a good number of businesses are enthusiastic about moving to a new office. Most times, they wish to get the best amenities in their new office without having to bear the fit-out costs; they also wish to pay monthly rent which is below average.
They may request to have an up to date designed office in a fully fitted condition and with specific configuration (e.g., a boardroom for 20 pax, wet pantry, one large room for CEO, three rooms for the director and five rooms for managers, 40 workstations, breakout area, receptionist area to host 4 – 6 guests, one in-house training room for 50 pax, etc.)
To find a fitted office matching the requirements of a different business is an uphill task, but a handful of businesses put in a request to have a view of the Marina Bay, lift lobby frontage, high level with a scenic view, and in a select number of buildings. They wish to enjoy all these in their office without paying any costs. Some businesses also request for a specific door direction for their office.
The bigger the requests you have while searching for furnished office space, the lower your chances of finding one.
How To Find A Fully Furnished Office Space In Singapore?
CREATIVITY and FLEXIBILITY are the two key factors that determine whether a tenant can find a furnished office space.
If you are not able to find an ideal furnished office space for rent after searching, the next option is to be patient enough for the break lease tenant to put up the office for lease. Since break lease offices are not always available, chances of getting an office that matches your specifications might be slight.
Finding the right office space for your organization is only a minute part of your business journey; the majority of the time should be spent in building the business. In order to find an office in fitted condition, you should exercise flexibility on the date to take possession of the new office and the requirement in areas such as location, quality of building, design, and configuration of the fit-out.
Be Flexible in Your Requirements
Try to adjust your expectation to suit market availability. If there are two or three offices that match most of the requirements on your checklist, we recommend that you go for them. It is highly unlikely to find a perfect office space on the market.
Re-evaluate your list of specifications to find out if you can eliminate some of them. For instance, is there a need for an in-house training room? How about renting a training room when you want to hold a session? It would be pleasant to have a wet pantry in your office, but is it really necessary? Most office buildings have a shared pantry on every floor.
Be Creative And Tweak Designs of The Available Spaces
Consider tweaking the designs of a furnished office to meet your requirements. Take down unused office rooms to create a larger general office area to accommodate more work stations, use additional office rooms left behind by the moved-out tenant to house your team who are handling sensitive information. If the office is partially fitted without furniture, consider office furniture leasing as an option.
Still couldn’t find what you want? Consider engaging the services of an office designer to craft a design that is ideal for you.
As you have noticed, it is not an easy task to find a furnished office space for rent. Search with an open mind and engage the services of an office finding agent to enhance your chances of finding a suitable office space.
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.
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