What type of office space should you rent out for your company? Is it worth investing in a traditional office space, or should you join in on the rising trend of shared offices? Alternative arrangements, like coworking offices and shared offices, have surged in popularity in recent years within entrepreneurs, start-up businesses, and even established companies. Such setups offer a flexible working environment, streamlined costs for business owners, and additional perks and benefits for employees.
But according to The Straits Times, the costs of shared offices are also experiencing an increase due to inflation, making business owners wonder if the convenience and benefits are worth the monthly payments. Here, let’s take a better look at the costs of shared offices and how they compare to traditional office spaces, all so that you can make the wisest possible decision on the type of workplace you and your team can use:
1) Rent
Traditional office spaces can have a monthly rental fee ranging from SGD 7 per sq ft. to SGD 14 per sq. ft., depending on the location. An office that is 1000 sq. ft. would then cost around SGD 7,000 to SGD 14,000, which could be too high for the budget of a start-up business. This could increase exponentially as the team grows and requires a bigger office space, and the price doesn’t include other utilities and amenities that the office will require.
In contrast, the monthly costs of a shared office in Singapore range from SGD 800 SGD to over SGD 5,000 depending on the size, location, and additional benefits that it offers. Due to the shared expense arrangement and lower overhead costs for more bare-bones basic amenities, shared offices cost much lower than traditional offices by comparison. Some are even inclusive of utilities, basic furniture, equipment, and other perks like kitchenettes.
2) Utilities
Utilities such as electricity, water, and internet are already included in the monthly fee of a shared office. On the other hand, the utility bills of a traditional office are not included in the rent and must be paid separately. These bills can add up to an additional SGD 500 every month. It’s often through the utilities that you can great value out of a shared office arrangement.
3) Equipment and Furniture
A number of shared offices already come fully furnished and with equipment such as printers, meaning you don’t need to have a set budget to fill up your office space. Some high-end options even have ergonomic office desks and chairs, ensuring that you and your employees are comfortable as you work. However, again, this depends on factors like the location of the space and the provider; you will need to visit the office itself to get a clear idea of how much more you’d need to spend on your own equipment and furniture items.
4) Meeting Rooms
Meeting rooms are sometimes separated from the main office in a shared office, which makes it an additional cost to your budget. Depending on the package, a shared office either gives you free access to the meeting room or requires an additional fee. The good news is that meeting room fees can be as low as SGD 2 per hour for economic classes and SGD 8 per hour for more high-end options. This allows you some flexibility over your preferences while still being able to save funds.
Meanwhile, if a traditional office needs to rent out more space for their meeting room, you would expect to pay additional monthly rent of around SGD 500 SGD. Even if it’s a big difference in price compared to a shared office, you may still want to take into account how much your team will need a meeting room throughout the month.
5) Additional Perks
Extra features in the office can’t hurt, especially if it’s for the comfort of your employees. The perks and benefits you can enjoy differ depending on the coworking office or shared office arrangement you choose. Examples of perks include a pantry for snacks, ergonomic furniture, and even in-house baristas and fitness centres for higher-end offices. These are also included in the monthly payment without extra fees, but do note that shared offices with these features are usually on the higher side of the budget range, at around SGD 5000 or more.
The perks can be a welcome addition to office life if you have the budget for them. A pantry stocked with healthy snacks, for example, is a simple add-on that can help boost employee morale and productivity.
Bottom Line: Is a Shared Office in Singapore Worth It?
When considering the final prices for a shared office and a traditional office, it’s safe to say that the monthly fee of a shared office is entirely worth the benefits and comfort that it will give you and your employees. In many cases, the monthly costs are already inclusive of rent, utilities, equipment, and additional benefits, and some shared offices can even be rented out on an as-needed basis as opposed to requiring long lock-in terms. If you want your team to settle into a comfortable working environment as soon as possible, but still enjoy the kind of flexibility that would allow your business to be profitable, consider looking for a shared office that can suit your needs.
