Types of Office Spaces in Singapore And How to Choose the Best One for Your Business Needs

Renting an office space in Singapore presents unique challenges due to its dynamic market. Understanding factors like the different types of spaces and choosing the best fit depending on your expanding business needs and team changes is crucial for the success of your company. From co-working and flex office environments to traditional spaces, each type offers unique benefits.

But fear not! We’ve come up with this guide below, to ensure that you make informed decisions that align with your long-term business goals.

Different Types Of Office Spaces in Singapore

There are three major office spaces that you could choose from depending on your needs.

Serviced Office and Coworking Spaces 

Serviced offices and co-working spaces in Singapore are primarily located within the Central Business District (CBD); In the recent years, we have seen an increase in Suburban co-working and serviced office locations, the main objective being, bringing offices closer to worker’s homes. This type of office, also named flex office, is fully furnished and comes with essential amenities, such as high-speed internet, meeting rooms, and communal areas, fostering a collaborative atmosphere. 

One major advantage of co-working spaces is the cost efficiency and flexibility you get. Co-working spaces and serviced offices offer flexible lease terms starting from 1 month to 36 months with the opportunity to grow your office size at any given time. These spaces eliminate the need for significant upfront investments in office furniture, infrastructure, and renovation work. At the end of your lease, you also do not have to worry about extra administrative tasks such as the handover or renovation of furniture and space. 

Co-working spaces offer a range of office sizes, including smaller options under 600 sq ft. This might be the perfect option for smaller companies that are in their initial growth phase. These spaces also include amenities like pantries and common areas, which might be absent in other office settings. The shared environment encourages networking and collaboration, potentially leading to new business opportunities and partnerships.

However, the shared nature of these spaces might need to align with the desired corporate image of some businesses. This shared nature of the space might also mean that resources like meeting rooms and communal areas might not be available in times of need. The open layout and shared environment may pose challenges for companies that require a high level of privacy and confidentiality.

Read also: A Guide to Stylish Productivity in Singapore's Co-working Haven

Traditional Office

Renting and customizing a traditional office space to fit your needs involves a significant initial investment in fit out, furnishings and IT infrastructure. However, this option can be more cost-effective in the long term than serviced offices. 

Renting a traditional office space can offer several advantages, such as customization and control over the work environment. For companies that give large importance to brand value, this can be a huge advantage as the work space would reflect the company’s imagery and style. Businesses also have full control over administrative tasks, such as IT infrastructure, maintenance, and security, ensuring they meet specific operational requirements. However, it also comes with significant downsides that need careful consideration.

One major drawback is the substantial financial and infrastructural commitment involved. The initial fit-out costs and ongoing rent and operational expenses can be a significant burden, especially for smaller businesses. Additionally, aligning the rented space with your company's growth trajectory can be challenging. You may end up leasing more space than needed or be cramped as your team expands. This can lead to inefficiencies and additional costs associated with relocation or lease renegotiation.

Furthermore, long-term lease agreements (typically 2-3 years, with optional renewals) can be risky for businesses with uncertain future needs. This inflexibility can hinder your ability to adapt to changing market conditions or scale your operations efficiently.

Therefore, choosing a traditional office space is often better suited for mature companies with established financial resources and a clearer understanding of their projected growth. These companies can better anticipate their space requirements and manage the associated costs. They also can commit to longer lease terms and invest in costly fit-outs without significant financial risk.

Read also: 11 Top Meeting Rooms for a Productive Offsite in Singapore

Virtual Office

Virtual offices, offered by many companies managing serviced offices, are becoming increasingly popular, especially among small businesses. They provide a business address and services like mail handling and dedicated phone numbers, with access to meeting rooms or offices as needed. The cost varies based on location and the services chosen.

The primary benefits include a corporate address for credibility, cost-effectiveness with a pay-for-use model, and convenient access to professional meeting spaces. However, additional costs for extra services may exist, and the address provided might need to be in a prime location. Careful evaluation of the virtual office provider is recommended to ensure quality services. 

Another great option for companies looking for a light set up and flexibility is to combine a fixed Virtual Office address and use Flyspaces' Passport subscription for on-demand co-working desks. This offers great benefits for small to medium size companies, including cost savings with a pay-as-you-go model, flexibility to use multiple co-working space locations with a single membership for the whole team.

How to choose an office renting space that is right for you

When considering an office space for your team, this checklist of item below can help you make the right decision: 

• Size of Your Team: Remember - even small teams with members frequently overseas require a physical office.
• Nature of Business Activities: Let your work influence the kind of office space you need.
• Contract Term: What according to you would be the ideal length of the lease and its flexibility.
• Company Growth: Anticipate future expansion and how it will affect your space requirements.
• Number of Full-Time vs. Remote Employees: Determine the balance between on-site and remote workers.
• Occupancy at the Same Time: Assess how many employees will be in the office simultaneously.
• Convenience and Transportation: Choose a location that is easily accessible for your employees based on their residences.

Additionally, assess your business's operational needs, like the frequency of in-person meetings and team collaborations, which can influence the decision for an office space. These elements determine whether a physical office aligns with your business requirements.

Flyspaces combines a marketplace dedicated to office spaces with the capabilities of a real estate agency. We understand modern businesses' evolving demands for flexible and efficient workspace solutions. Our platform offers comprehensive services to empower your business with the right real estate choices.

Read also: Co-working Space vs Serviced Office: Which is the Right Option for Your Business