Serviced offices cheaper than traditional office space rental
Serviced offices provide 40-60% compared to traditional office rental. Traditional Office rental also needs cash upfront as start-up costs which include renovation costs, building works, lighting systems, air-con upgrades, telephone systems, insurance and cabling. In Singapore, renovation cost average $40-50 per sqft. Break lease is not allowed and there is no flexibility in expansion or downsizing.
On the other hand, the benefits of Serviced Office are :
- No start-up costs such as interior design, office fit-out, office furniture, equipment and agency fees
- No additional costs for hiring, training or employing administrative support staff
- Sizeable savings on rental deposit
- Access to extensive facilities without investment in additional space (i.e. conference facilities, lounge area)