Office Rental Guide

Office Rental Guide

The purpose of this guide is for you to provide you with an overview on how exactly you are able to acquire an office space in Singapore. From a local company setting up or a foreign company considering to start up or moved your company in Singapore.

Between countries around the world, you will find typical procedures, terms and conditions differ. For this reason, we hope that with the information and facts presented will certainly make it easier for you and your stakeholders on deciding on your office space in Singapore

Step 1. Planning and Ascertaining Your Requirements

What will the new office space help you to achieve your plans?

1) Maximize the office space efficiency?
2) Reduce Rental cost?
3) Expand your company’s operations?
4) Enhance the company’s image/credibility?

Coming up with a plan is essential whenever you are on the lookout for leasing options. It is important to create a check list of your requirements prior to getting started with your office search which will include but not limited to:

• Identifying Location
Company management has to decide on the locale of the new office.

Questions to ask varies from :

1) Does your company need to be easily accessible to public transport like MRT and uses ?

2) Does your company need to be in a prestige address in the Central Business District (CBD)? How about options at the City Fringe or other parts of Singapore?

3) Do you need to be near to your suppliers, customers and business associates?

• Identifying the Office Size Required
Determine the space required in the mid to long-term business plans and allocate space for your expansion needs.
You may want to engage an office space planner, Architect or commercial office designer to “Test Fit” base on your requirements.
Determine if you require a Service Office/ Conventional Office on Bare unit Condition or Fully Fitted /Furnished Office. (E.g How much space is required?)

• Timing:
When is your current lease expiring?
When do you need to move into the new office?

• Monthly Rental Budget
Determining the office rental budget set aside for your monthly rental budget allows us to better understand which are the locations that will suit your needs.

• Fitting up Budget
You will need to consider the budget set aside for the renovation of your new office space base on a bare unit condition.

• Lease Term
What is the minimum lease term that your company is planning for this temporary or new office? 3 month, 6months, 2 years, 3 years or more.

• Car Parking
Do you require season car park lot for your directors and managers? Car parking options in the CBD area are expensive and limited. Thus, understanding your company operations also help determine if your office building should have ample car parking options.

• Other requirements such as security, technical requirements, IT and communications infrastructure, unblock views of the marina/ sea etc.

Step 2. Reviewing Options

After you have ascertained your requirements on the above guide, you are ready for your office search. You can appoint us as your preferred agent to get your started. Do allocate adequate time to evaluate and shortlist the available options.

Before putting your name on the lease contract or in case of you may find yourself uncertain with regards to which shortlisted office space is best suited for you. You may wish to engage a workspace designer to carry out a ‘test-fit’ of your shortlisted option(s) to ensure that the space you will be renting meets your requirements. The ‘test-fit’ enables you to figure out the best efficient usage of the space. The workspace designer are also able to calculate the fit-out expenditure to allow you to do a comparison of the shortlisted options determined by efficiency as well as economic aspect.

Step 3. Signing the Lease

• Letter Of Intent
Once you have determined the office space that fits your requirements. We will assist you in drafting a Letter of Intent (LOI) to be submitted to the Landlord’s rep, indicating your interest in renting the office space. The LOI will need to state the vital lease terms and conditions for instance date of possession, date of lease commencement, duration of the term, gross rent, free fitting up period along with other necessary information. Your company’s latest ACRA profile will be require to be submitted together with the LOI for the landlord to review you interest.

• Letter Of Offer

Upon receiving the LOI, the landlord will routinely conduct a check on the company profile and paid-up capital. Once landlord is convinced that the company is financially sound and is able to agree on the primary lease terms, a Letter of Offer (in duplicate ) will be granted by the landlord together with the specimen Tenancy Agreement for your execution.

To establish your acceptance to the lease terms , you are required to return back the authorised duplicates of the Letter of Offer along with the security deposit , stamp fee and one month advance gross rental.

Upon signing the Letter of Offer together with the deposit and advance rental furnished, the premises is considered secured and your company now shall be legally bound by the contractual commitments under the Lease terms. The landlord will also move on to stamp the Letter of Offer and return one authorised duplicate of the Letter of Offer together with the stamp certificate to you.

• Tenancy Agreement

With the acceptance of the Letter of Offer received by the landlord. You will be offered a tenancy agreement prepared by the landlord’s solicitors for your execution. The tenancy agreement is based on the exact same terms and conditions stipulated in the specimen copy presented to you alongside the Letter of Offer. It spells out the standard terms and conditions, which is applicable to just about all tenants in the building or tenants with the same landlord. The majority of landlords adopt similar terms and conditions that are relatively simple to comprehend. However, whenever in doubt, you may seek professional legal advice at your own expense.

Do keep in mind that as a common practice, legal fee in relation to the preparation of the tenancy agreement by the landlord’s solicitors is paid by you. On the other hand, this does not apply in all instances, some landlords have their own in house legal department, and thus no legal fee is chargeable for the preparation of the Tenancy Agreement.

**Points to Note:
• The tenant often will have to provide a certified true copy of their Business Registration certificate with the Accounting and Corporate Regulatory Authority ( ACRA ) , the Memorandum of Articles , and company’s board minutes of resolution to execute the lease before signing the lease/tenancy agreement.

• Ensure that you have got the required approvals, licences and permits from all relevant authorities before you decide to carry out your business operations in Singapore.

• You might wish to refer to the Typical Leasing Terminology in Singapore for reference on the important lease terms and expenses typically associated with the lease.

Step 4: Taking Possession and Fitting-Out

After the tenancy agreement is duly signed as well as all required payments such as security deposit paid, you will take over the property on the Date of Possession indicated in the Letter Of Offer and carry out fitting-out works.

Assuming that you have rented a bare unit, you will have to submit all plans and specifications for your proposed renovation works to the landlord and relevant authorities for approval before you can proceed with your renovation.

You will need to get in touch with relevant government agencies so you can get connections such as utilities, telephone, internet, and so on .

As soon as you have finished your renovation works , you can move in and get started with your business operations .

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