Serviced Offices vs Traditional Offices: What Startups Should Know

Location shapes how clients perceive your business. An address at the city fringe is in demand compared to the high costs in the city or CBD area.CBD locations come with steep fees. 

As of 2025, Grade A offices in Marina Bay Financial Centre (MBFC) command an average rent of S$13-14 per square foot per month, translating to roughly S$24,000-25,000 annually for a 150 sq ft private office (excluding furniture, equipment, and utilities). 

Here are typical per-desk / per-seat serviced office for rent price ranges in various locations (Singapore):

This shows serviced offices in Peya Lebar or other less central areas can be significantly cheaper, which may suit early-stage startups.

Lease Terms: Flexibility vs Commitment

Startups thrive on adaptability, making lease terms a crucial factor.

• Traditional office leases typically run for 2 years, locking businesses into high-risk, long-term commitments.
• Serviced office leases offer month-to-month, 6-month, or 12-month contracts, keeping risk low and commitments minimal.

For startups still testing markets and scaling cautiously, the flexible terms of serviced offices are a safer, more sustainable choice – something traditional offices rarely allow without incurring penalties.

Office Customisation

A traditional office offers maximum customisation: from layout and decor to furniture and branding. Startups that value building a strong team culture may prefer this freedom.

Serviced offices allow a reasonable level of customisation (furniture, décor, personal branding), though structural changes are restricted. Compared to coworking or shared spaces, serviced offices strike a balance between flexibility and personalisation.

Amenities That Make a Difference

The biggest advantage of serviced offices is access to key amenities without the upfront investment.

• Fully furnished offices: Desks, chairs, cabinets, and landline phones included.
• Shared Facilities: Access to the pantry and breakout areas that foster networking and collaboration.
• Local landline number: Separate business identity from personal communication.
• Utilities & Maintenance: Electricity, water, internet, cleaning, and general upkeep are all included in the cost, simplifying budgeting.

These facilities save startups thousands in setup costs while maintaining a polished, professional image.

In traditional offices, separate contracts are required for utilities, cleaning, maintenance, and IT services. 

Which Office Option is Right for Your Startup?

There’s no universal answer. The right choice depends on your budget, growth plans, and appetite for risk:

• Choose a traditional office if you have strong capital reserves, want full customisation, and are ready for a long-term commitment.
• Choose a serviced office if you want flexibility, cost efficiency, and a prestigious address without the burden of ownership.

Ultimately, startups need to remain adaptable. Serviced offices allow you to scale up or down with ease, keep expenses predictable, and focus resources on growth — not overheads.

In many cases, serviced offices can reduce your initial office cost by roughly 30-60% compared to conventional leases when factoring in furniture, utilities, fit-out, and staffing.

Why a Serviced Office Is the Smarter Choice for Startups

For startups navigating high rental costs and unpredictable growth, a serviced office provides the flexibility and scalability that traditional leases often cannot match. It’s a cost-effective way to maintain a professional image, access premium facilities, and stay agile as your business evolves.

Parkway Suites offers fully furnished, move-in-ready, and affordable serviced offices in prime Singapore locations, providing startups with the freedom to focus on growth while enjoying modern amenities and flexible short-term lease options.

Ready to maximise your team’s efficiency? Contact Parkway Suites today at admin@parkwaysuites.com.sg or WhatsApp 8166 5882 to explore how our serviced and virtual office solutions can transform your business.