New office post pandemic

The New Office-Post Pandemic

We are now more than six months into the Covid 19 pandemic. With this outbreak and its end not due anytime soon, it has been obvious that the entire office space industry has been massively disrupted with many individuals and corporates globally receiving mandatory Work From Home (WFH ) orders. With remote working becoming mainstream, ideas of down sizing and even abandoning the office space have surfaced. The global flexible workspace industry has also suffered a similar blow, with corporates avoiding it due to excessive interaction among office space users with co-working or hot-desking which may increase the spread of the virus, However in the mid or long run, most are beginning to see the real shift and value in utilising flexible office space, post Pandemic. Below are some reasons why.

  1. Challenges with remote working In many surveys that was done in many parts of world, many workers were asked , what was the thing that they missed the most during the lockdowns that were imposed in many parts of the world. Working in the office together with colleagues seems to be one of the most sorely missed. With modern technology, most if not all workers are able to work remotely at home or anywhere at their convenience.  However remote working is not without its own set of challenges. Many have cited ,loss of corporate culture , creativity and cohesiveness among the team as some of the most critical challenges when co-workers are not able to meet and work together.

        2. Sustainability And Wellness

         If there’s a silver lining to all this health crisis,  it’s that office workers are now more aware and placed much more emphasis onto health and wellness, and there’s now an explicit onus on us that we need to place primary importance on our health and above all in to create a safe working environment. Our workplaces will have to adapt to this new norm. The concept of wellness, which was already ingrained  among many corporations in the form of exercise and wellness classes and practices. Organisations realized that if they helped their workers stay fit and healthy, they could invariably boost their own bottom lines by eliminating healthcare costs, and increasing motivation and productivity across the workforce., as a result  enhancing employee retention.

Post pandemic, workplace wellness design will call for a reboot among workspaces designed with safety and wellness in mind. Innovative systems and gadgets such as zero touch access points, temperature screening equipment , air filtration systems  etc will form the main core of office space design post pandemic.  This pandemic has only serve to catalyst the beneficial change rapidly.

          3. Flexibility will be Key

If this pandemic has taught us anything, it’s that plans must stay nimble and highly adaptable. In an increasingly uncertain business environment even pre- COVID 19, many corporates has abandoned the Traditional office model, adapting the flexible working model instead.  The pandemic along with the lockdowns has only added uncertainty to the plans of many corporations, such as business expansion and employee hiring. Unfortunately during this pandemic , under the Traditional office model, many corporates let go or placed  many employees under furlough and excess unused office space were left under utilised , resulting in massive wastage, resulting great financial stress , especially so during this crisis.

In a flexible workspace model , corporates will have the ability to exercise flexibility in  their plans in down scaling their physical workspace requirements and employee hiring plans, creating a more nimble workforce and organisation.

Post pandemic , the new office will rather be an ecosystem of  design, locations and experiences working in hand in hand to provide the convenience, well-being and cohesive support that employees desire. Rather than merely just a physical space for working together, it will definitely create a platform among workers to  strengthen culture connections, robust bonding with both customers and colleagues, and maintaining innovation and creativity.

Flexibility will be at the forefront embodiment of above all. Workers will not want to work from home all the time , neither in a fixed office location , instead will like to be given the autonomy and discretion to manage their own schedules and work flow. The new workspace model will probably be a hybrid one with a high degree of  flexibility incorporated in it, will invariably accord them with such abilities to do so with more effectiveness.

As the pandemic drags on, it’s becoming evident that such a model will become the new norm. The above key points show us just how that this transition may just pan out.

Business Continuity Planning

Why is Business Continuity Planning so important for many businesses ?

The recent Covid-19 Coronavirus outbreak that has engulfed the entire world has thrown many businesses into complete disarray and with many hurriedly for immediate disaster recovery and alternate workspace options for their employees. With many getting infected even in big organisations, i.e Facebook & Grab and even in government bodies , no one is immune to it.

Many big organisations already have their own Business Continuity Planning or Workspace Disaster Recovery framework in place, even way before this virus outbreak. Besides virus outbreaks , disasters or events like , flooding, thunderstorm , tsunami, earth quake or even wartime can disrupt any business operation and reduce any business to mere tatters in a matter of days.

In view of the above, therefore its critical that every business , big or small should have a proper Business Continuity Plan ( BCP ) in place.  Without a properly thought plan or strategy, one business can go out for good in the event of a disaster outbreak.

What should there be in a BCP and how shall we plan for a proper one that possess all aspects of a holistic contingency plan ?

A business continuity plan outlines procedures and instructions an organization must follow in the face of disaster, whether fire, flood or cyberattack. Here’s how to create one that gives your business the best chance of surviving such an event.

Business Continuity refers to maintaining all business functions or posses resumption of all business activities in the event of a disruption due to a disaster.

Let ’s look at the major components of a BCP plan.

1. Human Resource- Are all your teams kept separate ? With all of them functioning properly should any of them is down ?

Arguably the most important aspects of a company will be Human Resource. Without it , no companies are expected to function properly.  Key personnel including department or business function heads ought to be kept distinct and separate.  In the event if one department or department head is down, another department has to step up and maintain such operations as smoothly as possible.

2. Alternative work sites options to keep your workforce safe and 100 % functional

Is your team operating under one roof in one location ? Have you kept your team and headcount divided in several other locations ? 

What kind of workspace options will be ideal in the event of a BCP ?

Do you think that you will need an all fully furnished office complete with all equipment ready to be deployed in a disaster recovery scenario ?  So that your team can reply on  just a plug and play solution , based on a ad- hoc situation.

Whether its co-working, serviced offices , private office suites , it could well serve your needs.  To be more specific, we will need to look into the geographical requirements of your business and all back up options for alternative work sites.

3.  IT back up contingency.

With our core business functions kept within our IT , are all your IT and databases kept up to notch and with separate back up on and off site , most importantly secure. ?  Are they well kept in the cloud as well as the server ? It’s critical that they are being maintained properly even during peace time.

4.   Key critical business functions.  Creating plans to maintain such operations.

All key business functions and roles are created with a clear plan behind it. Identify dependencies between each role and business function. Create acceptable downtime for each role and area.

5 . Testing of all the above.

Testing the above plan is only way is truly know it works properly.  Real challenge here is how do we go about testing it. Many times the real test came when actual disaster actually happened like the current Cover 19.

6. Review

No plan is perfect. Review must be done continuously to ensure continuity and improvements with constant tweaks to be done to. BCP plans should always be kept optimum and allowed room for improvement.

Not sure of how to go about it in getting your a proper BCP and workspace options for you and your team in time for a disaster or virus outbreak ? Contact us today and let you know how we can help !

A New Office

Common Mistakes Made When Leasing A New Office

Either when you are having an established business or you are just starting up, finding the right office for your team is one of the most important things you will need to undertake as a business leader or decision-maker.

However, finding the ideal office space for your business is certainly no easy task. It can take up a person or even a whole team plenty of time and resources,

With more than 6 years of industry experience, we have helped numerous businesses in leasing their offices within their parameters and budget.  As challenging and fulfilling it may be, we have also come across many businesses approaching us when they encountered several mistakes in leasing their offices, especially for new businesses.

What are the common mistakes made in searching for the right office space?

 

1. Not doing enough research

It is really critical to take the time to do some in-depth research, or at least dedicate a member of your team to this task. Some of the factors that are important to consider are your budget, how much space you exactly need, the office location. For certain businesses such as logistics, transport, additional research may be required on the locations, as certain locations will probably serve the specified businesses better. We would always recommend drawing up a list of shortlisted offices that meet your criteria, even before physically inspecting them. Budget is also a critical factor. A business will have to know if they have what it takes to last them in their new office space for the next few years or even longer.

Certain factors like layout , expansion options, technology, infrastructure, facilities , amenities and suitability for long term growth , will be critical in determining whether the final choice of workspace will be the right office for you and your team.

 

2. Choosing an office with the wrong size

As mentioned in our previous blog post,  most businesses often miscalculate the actual space required. More often, they lease an office that’s probably way too big when there is large unwanted space. Hence a lot of money and resources are wasted. In the event of getting a space too small, you may need to lease additional space or even relocate, resulting in loss of money and time again.

Some factors affecting the size of your office space will be

  1. Projected growth
  2. Significant changes that your business will undergo.
  3. Projected number of staff you are going to hire in the near future.
  4. Contingency plans in the event of drastic changes in your business landscape.
  5. Disaster management

3. Mis-judging your requirements

 

We met many businesses moving from traditional offices to Serviced and Flexible offices. In the course of moving or even before embarking on the search, they often feel that the same requirements they used to have will also apply in their new office. Most often, this is not the case and many costs and requirements may not be necessary after all. Things such a dedicated receptionist and meeting room are very good examples. Facilities such as receptionist, office front desk, pantry, and meeting rooms are provided as common facilities and payable on an ad hoc basis, unlike in traditional offices where you will need to create and pay yourself, hence resulting in massive costs savings.

Grave underestimation of your requirements could even be more pronounced when a business move from a flexible workspace to their own long term dedicated office. Some of the factors affecting this are as below

  1. Size required.
  2. Facilities required
  3. Costs involved, such as security deposit and outfitting  etc.
  4. Time required for given transition.
  5. Security
  6. Ancillary staff requirements.

4. Signing up for an office that’s too fanciful.

We are currently in the midst of an era where many co-working and flexible offices are opening in huge numbers in various Asia Pacific cities.  In an extremely competitive environment, many offices have offered attractive and fanciful perks such as plush interiors, custom-made furnishings and many different fanciful themes such as luxurious hospitality , loud & outspoken themes, some offering free beer and ping pong games. While it’s generally a good thing to differentiate among the competition by offering something special to entice prospective tenants. However, tenants made the mistake by signing up for such offices that offer such perks and fanciful designs, and thereafter only realizing that many of such features are not necessary for their business operations and having to made to pay extra for all of these.

 

5. Signing up for a lease that’s too short or too long

This is another prominent and yet very common shortfall. Some businesses during their startup phase, sign an office lease for a period that’s way too short. The downside is, upon the expiry of the lease, they will be expected to pay a higher rental for extension or renewal. Typically 6 or 12 months should be a better option if businesses are unsure of their business growth. On the other hand, many businesses commit the biggest mistake by signing leases that’s way too long. Either the businesses outgrow their needs or their cutting down of costs and manpower, resulting in excess space in the office they first signed up for.

Some ways to circumvent it, is there a possibility to look at below options ?

  1. Creating an early release clause in your lease.
  2. Negotiate a cap rental for the first few years.

6.  Not choosing a well qualified broker for your search 

With the availability of online search sites for office spaces, many businesses have chose to search for their new premises on their own. By not engaging a broker , they may think that they can save a bit of costs on their side. The truth is Tenants or occupiers rarely have to pay their brokers. Their commission are paid by landlords and building owners. Even if this could constitute a very minor percentage of the costs involved in signing the final office lease, the benefits from engaging a broker far outweigh this minor one off costs.

Your qualified broker is able to gather a short list of office space locations according to your specifications and preferences. He or she will also be able to point out to you what are the advantages or disadvantages of each specific location that an owner will definitely not give you a non biased reflection of their properties. This is a danger itself when one sign up at a location before even when its exposed to different options.

 

7. Lack of know how to negotiate with your Landlord

Without any knowledge and experience in negotiating with your Landlord , the tenant will be left at a great disadvantage. First , they may not know or not familiar with the standard market practice, the jargon and complexities of terms  on lease agreement. This bring us to the previous point of engaging a well qualified and experienced broker. A savvy broker will be able to point out to you and hand hold you through out the entire process , right from sourcing, shortlisting and negotiation and right up to getting your keys and out fitting the premises. Without all of the above, there’s a likely possibility that costly mistakes will be made , incurring huge losses.

Looking for a new office soon? Unsure of how to do it?

Talk to us today and let us help you on your search for your ideal office space !

Flexible office space

How much space is really needed for your office?

In our course of work in advising businesses on their choice of office space, one of the most often asked questions is :  How much space is  really needed for my office?

Before embarking on the search for their ideal office space, most businesses often miscalculate or even overestimate ( which is much often the case ) the space that is really necessary for their normal day to day business operations.

Before we start the search for  our clients, the below questions or factors are the ones that will often determine a close estimate of the amount of space each business require.

 

  1. Nature of business : Are you a legal or manpower recruitment firm? Or a fledging tech start -up. Due to regulatory requirements, typically Legal, manpower or even travel agency businesses will require maximum privacy and confidentiality where bulk of their operations can be conducted in their own private office suites. Tech startups or other types of businesses can opt for co-working desks, as this option helps to save space and costs too.
  2. Stage of business :  Have you just started up with 1 or 2 persons operations? Or 3 to 4 expanding to 6 or 7 persons? Maybe perhaps already having a more than 30 persons team. In recent years, due to changes in technology , most businesses have drastically downsized their manpower needs , translating to huge reductions in physical space requirements.  It may no longer make sense for a team of less than 10 persons to lease a conventional office dedicated for their own use.
  3. Is your business expanding fast ?  : If your business is expanding fast, the best option to secure a property with a provider or landlord that allows certain flexibility, inclusive of upgrading to bigger spaces once you need to. Try adopting different workspace strategies that allow you to secure a core space with flexible options, or a hybrid combination that contains both fixed and flexible features of an office space lease. This will allow your team to scale up or downside effectively accordingly to the growth of your business.
  4. Seating arrangement: Depending on each team member’s job nature and job scope,  each size requirement may differ. Typically workspace for one person starts from around 50 to 60 square feet. A software engineer or  financial analyst may require more space for his or her extra inventory.  A senior management member or CEO will definitely require more space most of the time. Many new workspaces has began to incorporate hot desk concept in their new set-up , instead of fixed seating for every member of their staff as this has helped to remove excess space.
  5. Ancillary space:  Is there any other type of facilities that your team need in your office ? For example, meeting rooms, board rooms, break out areas, pantry, lounge etc. Is it a must that you need to incorporate the above inside your own space?  Some of these space may no longer be relevant in today workspace environment, for example a reception. Do you still require your reception to be manned by a full- time employee ?  Is your board or meeting room properly utilised by your staff ? Or is it empty most of the time ?
  6. How big is your current space ?  This is the most common baseline we are starting to work from. Is your company undergoing an expansion, or downsizing ? Or is it going through a cost cutting exercise ? Beside procuring a new space with a lower rent per square foot, a smaller space definitely will also help to save bulk of the costs. A proper evaluation is required , in order to determine what are the costs that can be eliminated, resulting a properly planned optimised workspace.
  7. Alternative storage –  Does your business require a lot of space for storage? Is the storage required really necessary, especially in today environment, where most documents are digitally stored and secured in the cloud or within servers. Or perhaps, you may also look at outsourcing storage space to alternative locations that provide ad-hoc storage services at an off side location at a much lower and competitive price.
  8. Server space- Do you still need a server space ? If so , is it still necessary to have your server space on site? Depending on exact amount of server space required, it could be a better idea to outsource it too. Besides, server space in your own office space may require 24 hours air-conditioning to maintain it. By out sourcing it, you may also help to reduce your utility bills by a huge portion.
  9. Using IOT ( Internet of things ) tools to determine your workspace efficiency- By leveraging IOT tools, one can make use of the analytics data to manage the air- con, lighting operations as well as to determine how frequently a portion of the space has been well utilised. By using the data derived from the tools, we can better eliminate the excess space and plan better optimum usage for the space required. However it will only makes sense for such tools to be deployed before the move to a new space, so as to pre-determine the actual space required.

The above should paint a clear picture of how much space your business require. Still not sure how much space is really needed for your office? Please contact our friendly customer service team for a non-obligatory consultation.

How To Save Money When Leasing A New Office?

Office rent is always one of the biggest running monthly cost for every business. Therefore no  effort must be spared to ensure that businesses spend within their budget , ideally optimising all resources.

There are a number of ways in which you can pull down your expenditure and run your office at minimal costs.

A right-sized office

Get an office space that has sufficient space to accommodate all your office staff and activities, but not too large that some portion of it remains under utilised. Remember that your rent increase with the floor area, so it’s better to have a good idea of how much space you would be requiring beforehand. One common mistake was to lease a conventional office with your own conference or meeting room when it was hardly used. Given in the same scenario, it would be a better idea to lease a serviced office or executive suite with meeting rooms on a ad hoc hire.

Lease a fitted office

One of the biggest cost of leasing a new office will be the office outfitting. It can cost anything from $50 per square foot to $250 per square foot , depending on the level and type of fit out.

For a typical size of 1000 sft office, it can cost you up to $250,000 ! And that represent a huge sum of money.

However it remains a big challenge , to lease a office with that right type of ideal fit out for your team. As every company as their own designated requirements and layout. Therefore tenants are highly encouraged to adjust their expectations, when it comes to office fit out. Some minor adjustments can be incorporated in fit in the new team which is much preferred than out fitting the entire place.

Used furniture

You don’t necessarily have to buy brand new office furniture, at least not all of it. Second hand furniture can work just as fine and they come at a lesser price. For example, you can buy off furniture from the previous occupants of your office space, or you can buy used furniture online, especially either from Taobao or Carousell. Just make sure that you are buying quality furniture that’s worth the money.

Use alternative sources of energy to reduce electricity bills. 

Consider getting an office that has large windows and receives a good amount of sunlight during the day. Such offices offer many advantages. First of all it will reduce your power bills since lesser number of lights will be required. Second, it will give a fresher and brighter look to your office. Third, it will help you contribute towards saving precious energy.

If your office is in Singapore, you can try switching your electricity supplier. By doing so , you can reduce your electricity bill by 30-40%.

Use Less Paper

You can reduce the usage of paper in your office and save on supply expenditure. One way to do this is by making employees more aware about paper wastage. Another way is by shifting work to digital platforms through a cloud service or an office server. As such less space is required to store these documents, therefore you are able to reap huge savings from renting lesser space that you actually needed.

Workforce allocation

Take a closer look at your workforce, including their tasks, duties and timelines as in what kind of jobs and deadlines they are assigned. Do they really require a permanent seat in your office ? Do they come in everyday ? Or perhaps they can work off site or at home ? In order to reduce staff costs,  it’s also very common nowadays many companies employ staff that are working remotely , often in a different city. Conduct a workforce re-allocation exercise and uncover ways you can place lesser work stations in your office space for essential staff, or core appointment holders.  As a result you will lease a smaller space than what was initially required.

Adopt different Workspace Strategies

It’s important to try out alternative workspace strategies. In today’s era of changing technology and tempo, it no longer makes sense to stick to same old traditional way of working.  Relating to the previous point of workforce allocation, it’s imperative to look at what kind of strategies that may work better for your organisation , whether its a start-up or fast growing enterprise.  One of the often used strategies will be the Core & Flex model that many fast growing startups and even MNCs actually deployed.  You will need to determine the core team of your workforce, such as essential staff that need to be placed together everyday and staff that are often outside meeting clients or vendors or staff that are working remotely. You may able able to place such staff on a site that provides flexible workspace arrangement, i.e co-working , serviced offices , either on a short term or month to month basis. Such arrangement allows you enough flexibility to reduce or even increase staff that you can take on , should there be a need.

By maximising all available resources, reducing wastage will enable great savings  in running an office  and this will add up to your profit kitty at the end of every year.  Some of these can be given to employees for contributing in building a lean and effective workspace for everyone in the organisation.

Not sure on details of the above and how to execute them, contact us today , and we will be able to offer you a free non-obligatory consultation.

Building Classification

Understanding office building classification types

When it comes to quality, safety and efficiency, office buildings can often be found under different classification types. Typically, all office buildings fall into one of three classes or grades.  Grade A, Grade B or Grade C. Standards often vary by market and city. Each category is defined in relation to its counterpart, so developers, investors and prospective buyers / tenants can all identify and determine each building accordingly.

Classification allows for the differentiation between buildings, which makes it easier to rationalise market data. i.e asking and transacted rent & sales price. Such data is critical in assessing the right decisions when it comes to buying or leasing the the right asset, whether it’s for individual or corporate usage. There are several factors to take into account and classification may not be an exact science. However, there are general characteristics of each class that are easily identifiable. Here are a few of them.

Grade A

As the name suggests, this class is reserved for the highest quality buildings in a market. For the most part, Grade A buildings feature the best aesthetics and being constructed with the best specifications with top-grade building infrastructures

Besides having the most important criteria of a prestigious address, the most common specifications of a Grade A office building will be a floor plate of a minimum of 20,000 sft, full floor to ceiling height, lift lobby with intelligent access, raised flooring. fibre optic ready etc. 

Furthermore, Class A buildings must be strategically located with great accessibility right in centre of CBD. Building management also has to be exceptional. In fact, a Class A+ exists for buildings who go above and beyond expectations with regards to quality, maintenance and management. As a result of all these factors, a grade A office building  often attract the highest quality tenants while also commanding the highest rates. A Grade A building often attract tenants of the highest calibre, such as Multi National Corporations, Techological unicorns, banking instituitions. 

Grade B

As far as office spaces are concerned, Grade B developments are often considered to be of decent quality and build. They may not have the same high-quality fixtures, components, architectural details or impressive lobbies seen in Class A spaces. However, developments in Grade B are still very good and fully functional in terms of structure and layout.

Other factors, such as location, building systems, property managers and facilities are usually ranked average to above average on the quality scale. A majority of Grade B buildings are often built in suburban areas or on the edge of prominent financial districts.Grade B office spaces tend to command “average” market rent (which might make it one of the more common class types for SMEs).

There is a final factor that differentiates Grade A and  B buildings; that is age. Since Grade B buildings are typically older than Grade A buildings, some developments experience slight deterioration. In fact, buildings can start out as Grade A and downgrade to Grade B after a decade or so once the signs of wear-and-tear become clearly visible. 

Grade B buildings are still very much in demand and sought after as not all businesses require to be in Grade A buildings. There are also a large number of Grade B buildings having the same prestigious business address as Grade A buildings in CBD as well.

Grade C

The Grade C category is often used for office buildings that are older (around  the 20-year mark). These buildings may also be located in less prominent or desirable areas, which contributes to its classification, and they are usually in need of extensive renovation in order to restore some semblance of aesthetics. Grade C offices are also in less desirable buildings featuring older or no technological features. 

Grade C properties that continue to remain occupied, command lower rental rates and generally attract tenants with smaller business operations. These tenants tend to either not have the budget to afford bigger, more impressive spaces or do not require access to centralised CBD hubs. Such businesses generally also do not require an impressive building or address , unlike Grade A office tenants. 

It can be possible for Grade C buildings to be upgraded to Grade B buildings , with  Asset Enhancement Initiatives  (AEI ), major improvements and repairs. However, it’s unlikely that they will ever achieve Grade A status, mostly due to the location and visible age of the building.

So, these are the classification types that buildings fall into. Bear in mind that these are general guidelines and no formal international standard exists for the classification of buildings. In reality, a number of factors are taken into account before buildings and office spaces are chosen (from the amenities offered to the location and market condition). Because of this, classification can be somewhat subjective. However, the overall quality of the space is something that you should bear in mind while reviewing lease negotiations.

In summary what decides an Office Space/ Building  Classification?

Below are some factors that decides the actual building grade :

• Property age

• Location

• Accessibility

• Floor Plate size

• Number and speed of elevators

• Lobby access system

• Construction certification i.e Green Mark

• Onsite amenities / facilities

.  Links to public transport network / Train stations.

 

Not sure what Grade office space should you and your organisation should be relocating to ?

Talk to us today and we will be able to advise with the widest range of options.

 

Mapletree business city

Why Business Park Space is considered an attractive option for office space occupiers?

Image Credit : Mapletree

 

Singapore has been long considered as an established financial and business city, and  a preferred hub for many foreign businesses keen on establishing their Asia Pacific HQ in the region, especially in the rise of the massive South East Asia market.  In order to meet various needs of industries and needs, the government has been working on major business and industrial infrastructure and developments islandwide, in the CBD city centre, city fringe and the suburban areas.

The CBD city centre has always been well regarded as the most suitable location for most MNCs as well as many other businesses due to its excellent location, infrastructure, transport connectivity and of course availability of good grade office space. For many MNCs ,especially those in banking, financial services ,legal and energy sectors, being in a Grade A office building and address is essential.

However the downsides of having a presence in downtown CBD, are having to pay a sky high rental , issues of over crowding, paying higher for items like food, parking etc.

Due to the above overcrowding issues and land scarcity in city centre, the Singapore government has been trying to build more commercial nodes outside the city centre and satellite townships by putting land parcels for sale or lease in sub urban centres and districts particularly for mixed, office or business park developments.

Some of the more popular sub-urban locations are Paya Lebar Square, Metropolis ( One of the  first Grade A building outside of CBD) , Mapletree Business City etc.

As a result of this decentralisation exercise,  a large number of business parks in many different sub-urban locations have been built and established over the past two decades. The government also ensure that more land will continue to be set aside for the various businesses in different sectors for their operational and expansion needs.

This approach will ensure Singapore remains to be relevant to the ever changing business dynamics of local and foreign enterprises by maintaining its land bank to be appropriately  zoned to fit in various industrial needs and requirements. This move so far has been achieving a substantial level of success in attracting many big names to the city state- i.e Dyson is setting up their first electric car plant outside UK here in Singapore , Glaxo Smith Kline opening their new $130M facility in Jurong. 

Together with the government open and friendly policy to foreign enterprises and startups,  it has shown its effectiveness in maintaining the country’s vibrancy  and commercial viability in attracting both small and large businesses and even well funded unicorns in setting up shop in Singapore.

So just how successful are Business Parks and are how they relevant in the present business landscape?

First and foremost what is a Business Park, and what kind of businesses are  allowed and deemed suitable for which business park?

“According to JTC Corporation, business parks refer to areas for non-pollutive industries and businesses that engage in high-technology, research and development (R&D), high value-added and knowledge-intensive activities. Hence, businesses suited for business parks include a wide range of light and clean uses such as R&D, data centre, information technology, telecommunications, electronics, healthcare devices, product design, development and testing, technical support helpdesk, service centres and back-end operations of financial institutions,”

Here’s a look at some of the most popular business parks in Singapore.

One North

Master-planned & developed by JTC , One-north is a 200-ha located on western part of Singapore, with a 10 minutes’ drive to Singapore’s CBD and well served by the one-north and Buona Vista MRT Stations on Circle and East-West line respectively.

It was constructed in close proximity to the tertiary institutions such as National University of Singapore , Singapore Polytechnic and medical institutions like the National University Hospital, so as to create a vibrant hub that encourage learning and cultivate industries such as bioscience, infocomm technology , IT ,software and other leading technology solutions. The creation of such a hub has brought about many multinational corporations, small and medium enterprises and start-ups here, resulting a world-class home for many high tech innovative global fast growth companies. 

Some of the most popular landmarks in One North will be Fusionopolis, Biopolis , Solaris ,The Rochester etc. Grab and Razer has also confirmed building their HQ buildings in One North and expected to be opening in 2020.

Mapletree Business City

Located at Singapore’s CBD fringe, with a less than 10 mins drive from CBD, Mapletree Business City (MBC) is an award-winning development that provides a holistic and enriching work environment for all users. It was one of the first that feature a holistic office environment that integrates, retail, leisure, dining amenities all into one. As part of the 13.5-ha Alexandra Precinct, MBC itself is housed in a 2.8-hectare garden of landscaped lush greenery, it is also connected to Alexandra Retail Centre, PSA Building and Labrador Park MRT via sheltered access.

One major move to MBC was Google in 2016 from Asia Square in CBD.  Google has also just confirmed an additional 344,100 sft at adjacent Alexandra Technopark.

Changi Business Park

Strategically located in a beautifully-landscaped environment that is supported by 2 MRT lines ( East West & Downtown ) and just a train station away from Changi Airport, Changi Business Park (CBP), which is on a 71 hectare of land, comprises of multiple high tech buildings that house businesses from industries such data and software enterprises, R&D, Engineering design ,call centre and other knowledge-intensive enterprises. It’s also a popular location for back room and IT support operations of many large banks and financial institutions.

Some of the world’s leading companies at CBP include Honeywell, IBM,Xilinx and leading financial institutions such as DBS Bank, Citibank, Credit Suisse and Standard Chartered Bank etc.

 

 

Advantages of operating in a business park

1. Savings in Rent

The number one major advantage will be the savings in rent , as compared to leasing an office space in a Grade A office in CBD.

Let’s look at a comparison below

Type of property               Median rentals $ psf pm (1Q2019 – 2Q 2019)

                                                                     

Business Park  (City Fringe )                                $5.20 psf

Business Park  ( Outside Central )                         $5.23 psf

Office space (Grade ‘A’)   ( Central )                    $10.00 psf

Office space- ( Grade B )  (Central)                      $7.60 psf

Source: Urban Redevelopment Authority of Singapore (URA)

By just looking at the above, businesses can expect a more than 30%- 40% in rental savings if they can relocate and set up office in a Business park. However the nature of business will be subjected to approval of URA , as Business Parks are classified under either B1 or B2 zoning. All business located in these business parks must be in the approved and qualified trade and fulfil the 60/40% space allocation for core and ancillary business activities.

2.  Improved Productivity

With companies moving to business parks nearer to home, workers can travel to their workplace within a faster time and vice versa. Besides leading to improved productivity , it also leads a better work-life balance which has been heavily promoted by both enterprises and government.

3. Better lifestyle amenities in Business Parks.

Gone were the days, that you are expected to work in a dull industrial estate in an isolated location, with only a few canteens available. More developers are building lifestyle amenities within business parks to better cater to modern lifestyle of workers such as a wider range of F&B, fitness centres, swimming pool,  child care facilities and even bars.

4.  Better building specifications

One reason why many MNCs are drawn towards Grade A office buildings is the availability of large floor plates. In order to better match the demand for corporates with such a requirement, more properties in business parks are being built with large floor plates , raised flooring, as well as  full floor to ceiling windows.

5.   More attractive incentives provided by Landlords.

More Business Parks landlords are providing much more incentives to entice prospects and tenants to set up their office in their business parks. Incentives such as giving rent free period for up to 6 months, giving preferential rates for the first few years. fitting out allowance etc are some of the common incentives that landlords are known for giving.

6.    Lower costs working outside of CBD.

It’s a well known fact , by working outside of CBD, it will help every individual to save costs on dining, car-parking, laundry and many other expenses. One can expect to save up to 20% compared to working inside CBD. For example, a season parking in Raffles Place will costs around $400 on average a month whereas a season parking lot in a sub-urban business park will cost less than $200 a month.

What we think of business park space.

With prime office rents expected to continue rising next few years, an office space in a business park is increasingly seen as an attractive alternative.

We have already seen many office space occupiers relocating from CBD to sub-urban business parks and office buildings in the past few years. As prime office rent will continue to be invariably high, this trend will probably stay this way for quite a while. Office space occupiers comprising of startup companies or other office tenants should strategically utilise any opportunity to relocate to take advantage of lower rents, and similarly information technology (IT) firms should also consider relocating and expanding their operations in business park space.

Unsure of which Business park space is suitable for your business. Speak to us today for a 100% non obligatory discussion.

Downsides of working in a co-working space

Downsides of using a co-working space

Co-working space or Flexible workspace as you called it basically has taken the front line of every commercial real estate articles and news in every major or even minor city worldwide. The percentage of flexible workspace has also began to increase dramatically in overall office space availability in many cities, especially in Asia.

It has not only attracted the likes of freelancers, entrepreneurs ,startups and MNCs. Now it has also attracted big investments from Venture capital funds and huge sovereign funds etc.

Enough has been said about the multiple advantages and pros of using a co-working space.

Let’s discuss the real downsides of working in a co-working space.

1. Branding and Customisation

You will not be able to have your own branding for your own company and team inside your co-working space. With very limited options for customisation, it’s a tough task to build your team culture and DNA within a shared workspace environment.

 

2. No Privacy

 

Man With Headphones Facing Computer Monitor

 

Most people or interested parties will get very impressed by professionally taken visuals of each co-working space online. But does the actual workspace reflect the real picture? In reality, working in a cluttered work space with all kinds of commotion means productivity is sure to go down. Even a private cabin won’t do much good, unless it is fitted with walls with strong sound absorption. Unfortunately such features are rare as sound proofing is known to be costly. Sensitive information is also bound to be compromised in this setting, which means confidentiality and data loss are at high risk of being violated.

3. Expensive per square foot

closeup photo of 100 US dollar banknotes

By comparing on a per square foot basis, renting a co-working desk could be as expensive as 5 times that of a traditional workspace. And this cost could be still going on its way up. However we need to bear in mind that bulk of that cost typically goes to outfitting that space. Co-working generally works for small businesses and teams. But when your team goes beyond 10 persons or more, then traditional workspace should be seriously considered.

4. ’Close’ competition

50 U.s. Dollar Banknote

With various businesses under one roof in the same co-working space, it will be inevitable that competitors may end up next to each other! This could result in some undesirable outcomes and even worse ugly incidents. Such as resulting in data and information leak or even worse loss of business to that competitor.

5. Noise

 

Man Wearing Brown Suit Jacket Mocking on White Telephone

This ranks as one of the biggest downside working in a co-working space. Even though every co-working space has their own house rules, especially governing noise control. Unfortunately not everyone abides by it and hence when in a crowded co-working space , everyone starts speaking, whole entire place will turn into mayhem , resulting a drastic drop in your productivity.

6. Diminished Productivity

man holding smartphone looking at productivity wall decor

With the presence of crowd, noise and distractions, workers in co-working space will face a drop in their productivity. In fact some of the common remarks we often get , some co-working spaces are even well known as food markets due to extreme over crowding and noise. One of the reasons why many remote workers or freelancers choose to work in co-working spaces is to improve the productivity. However in reality the opposite could the truth.

 

7. Insufficient facilities

long table with Eiffel chair inside room

 

This is a very significant problem caused by over-crowding. Due to the mandate of pursuing for more sales and new members sign up, many times, the co-working space runs into an issue where all facilities , i.e meeting room, board rooms and discussion areas became over-booked. Even when it’s required to book the facilities for your team in advance, it’s getting increasingly tougher to secure usage due to extreme high demand. As such this leads to not just a drop in productivity but also frustration.

8. Technical Infrastructure

Black and Gray Mining Rig

 

Most co-working spaces are marketed to boast of some of the most advanced technological infrastructure and features. But not all of them have that. To work outside of a well-connected corporate office, you likely require some high-tech equipment, hardware, and software to do your job right. While some advanced or “High end “ co-working spaces are equipped with all the latest state of the art technology, many still lag behind at the expense of their members. Do not be too overly surprised to learn that the high-speed internet connection at a co-working space isn’t as fast as advertised. In the event of a downtime, will there be a qualified IT professional to assist in all forms of troubleshooting ? It’s a well known fact that businesses can lose a lot of money during period of IT infrastructure or servers going down. Businesses that rely heavily on such , should conduct proper due diligence before committing to any spaces.

8. High Cost, Low Return

Free authentic money photo on Reshot

 

While the marketing material for a new co-working space may highlight the countless benefits offered to its members, it’s important to remember that co-working spaces are ventures created to derive great profit from it. Membership fees vary largely on the locations you are in, type of services provided as well as the type of workspace, i.e hot desk, private desk or private office. However very often, the high cost of membership doesn’t turn out to be worth the low return that you receive for your commitment and loyalty, as they will probably give the space to someone else who’s willing to pay a higher fee when your lease is up.

 

 

Having highlighted some of the downside of using co-working space, there are of course many benefits in using them, such as lease flexibility and costs savings from not having to outfit office etc. The most important thing is to understand co-working space may not be suitable for everyone or every type of business. If you are going to use a co-working space, mutual understanding among members in a co-working space is very important , so as to ensure that working in one is a pleasant affair, so that many inconvenience and disadvantages can be overcome more easily.

 

Not sure which type of workspace suit you and your team more? Or even which co-working space will suit you , given with so many options in the market. Let us know today , on how we can best help you to obtain your dream workspace.

 

 

 

Office Space For Rent

10 major considerations when searching for new office space

1. Right amount of  floor area

small tfd101 GIF by Tacoma FD

Perhaps the first and most important consideration will be the size of your new office space.  In common scenarios, most office managers or planners often plan for 50-100% increase , compared to current size that they have. However this often may not be feasible as they may not have assessed whether the space in their current set up is properly optimised to see if there are provisions for extra space for additional workstations or ancillary workspace.  The inability to foresee the amount  of business expansion in the near future , so as to determine the additional headcount that is warranted for the expansion, further adds to the obstacles to planning the right amount of space required.

 

2. Limited Space Options

fox innocentonfox GIF by Proven Innocent

In a fast growing developed business city like Singapore or Hong Kong, where incorporating a business is one of the most easiest in the world, there’s often a shortage of business space as very often space supply will always be constantly met by abundant local and foreign SME and Multi-nationals, especially in a business upturn cycle. One may have to look beyond traditional avenues of space hunting, i.e property portals, newspaper listings, traditional real estate agents, to get the right ideal space. Engagement of a specialist agent or solution may be a suitable way to pin point the right option for your ideal business space.

3. Rental budget

 

money hustling GIF

 

Are you paying an amount that’s justified by the current market conditions? Will we be seeing an upwards or even downwards rental revision comes next lease expiry? By locking yourself to a “ cheap rent “ for a few years or prolonged period of time seems to be the smart way of doing so. But is it right that all other alternatives have been properly considered and whether that remains to be the right way ?  As office rent remains to be one of the biggest running cost components besides manpower costs, serious considerations and deliberations are required to to be given to it. Alternatives include coming up with a well planned workspace strategy that incorporates “ Flex-Core “ leasing model can actually help a organisation save tons of money and resources. In view of these, landlords have also began to build flexible workspace options within their own property portfolio, so as to entice a high lease rate and low attrition among existing tenants. 

4.  Type of Workspace

 

Depending on one’s nature of business, there are various types of workspace available in the market such as  Premium Grade A office, High Tech Business Park space, Shophouse office space, co-working space or serviced office space. Each type of workspace has its own features, advantages and disadvantages. In current business landscape, it’s no longer strange to find large multi-nationals using flexible workspace or co-working space. Similarly, Premium Grade A office space no longer remains to exclusively only to large multi-nationals, financial institutions and energy companies, we have seen a huge take up of such space by technology companies and well capitalised startups. The selection of the right type of workspace is critical to the organisation , not only with regards to the rental budget , but also it must be aligned to the right culture and image of the organisation.

5. Lease Tenure

crossing season 4 GIF

A very often much debated topic among business owners and top management is the lease duration. It largely depends on the stage of growth of the business, fast growing startup or a mature company. A fast growing startup will find it hard to determine how much expansion in terms of headcount they are looking at 6 or even 3 months down the road. Therefore sticking to a long term lease beyond 3 years will be a very risky option for such businesses. As a rule of thumb, for any leases shorter than 3 years , most businesses are discouraged for leasing any form of traditional workspace where large amount of investment are put into outfitting. Flexible space options such as Private office suites, serviced offices, co-working space are fully furnished and equipped options that should be given serious thought if organisations are looking to occupy a business premises for less than 3 years.

6.  Location

tech app GIF

Is a CBD address a mandatory requirement for your business ? It’s often a much highly desired requirement for many businesses , often due to prestige , central location ,easy access to amenities and transportation network. Due to cost considerations , not every business can afford to be in prime CBD zone.  For a smaller setup , i.e less than 10 persons, a sensible option is to lease a serviced office or co-working space in CBD. For outside CBD or city fringe locations, it’s necessary to procure a location which is easily accessible for most and also with adequate amenities , F&B and public transport options. Another less spoken about requirement , do you want it to be near or far away from your competitors ? Some businesses from certain industries will want to be in a building where there are a couple of their fellow competitors, whereas some will avoid those at all costs !

7. Design

 

art design GIF by WeWork

Design of the building or even the aesthetics of our workspace ranks high today on our criteria when we search and build a new office. In this generation, when millennials comprise a huge part of the workforce, a well thought workplace design beside being visually appealing, aspects that incorporate flexibility , wellness that inspires innovation and collaboration internally as well with external partners and stakeholders are extremely important in attracting and retaining the right staff.

8.  Facilties

 

homer simpson gym GIF

 

Buildings or locations with extensive range of facilities such as childcare, wellness i.e, fitness centres, showers and bicycle parking are so popular with tenants , that an increasing number of landlords have began to incorporate and build them within their property portfolio. This not only serve as great convenience to the tenants , but also provide them with a holistic and healthy environment to work and strive in.

9.  Technology

spongebob squarepants internet GIF

 

Does the tenant have access to technology features that all modern workspace or buildings have? Features like , fibre ultra-fast internet , raised flooring for cabling, smart features like electronically activated windows, high security access turnstiles, lift access. Proper High tech infrastructure is very important for major features like IOT ( Internet Of things ) , smart desks , big data to properly function. Such advanced technological aspects have became a very important consideration for many office space planners now, so that better utilisation of workspace and manpower can lead to better productivity. 

10.  Room for growth

space extra room GIF

 

Do you have provisions for extra space if your business outgrow its planned trajectory ? To many business owners or top management ,such “ good problems “ often turned out to be nightmares instead, placing much unnecessary constraints on their manpower and logistical resources. It’s always good to play safe to work with a landlord or workspace provider that has a wide portfolio with immense options. In the event should a tenant really outgrow its own space , there will be ready options for them to utilise.

Not sure how to embark on your new office space search ? Let us know today , how can we best help you.

Rent Serviced Offices in Marina Bay Financial Centre

Why you should rent a serviced office in Marina Bay Financial Centre (MBFC) In Singapore?

Why should you rent a serviced office in Marina Bay Financial District (MBFC) in Singapore? 

If you are looking to set up and expand your business in Singapore, you need to pay particular attention towards a few important factors. The location of your office is perhaps the most important one.  If you go for an office that is positioned in a strategic location, you will be provided with a great chance to open up yourself to a large number of exciting opportunities. From recent studies, it has been identified that most business owners and even large enterprises tend to make mistakes when they are selecting the location to set up their office in Singapore. To ensure that such things do not happen, we thought of letting you know about one of the best locations available in Singapore to set up your office is to rent a serviced office will be none other than in Marina Bay Financial Centre. 

What to expect in Marina Bay Financial Centre ( MBFC ) ?

To begin with, let’s understand what you can expect at Marina Bay Financial Centre. Then you can make an informed decision on whether you are making appropriate steps to rent the right serviced offices in MBFC. The Marina Bay Financial Centre is spanned across a total area of 3.55 hectares. It is a prominent and a prestigious commercial development, which is located in the Downtown Core. It is also the new CBD district in Singapore that was developed , adjacent to the old or current Raffles Place CBD district.

There are three office towers blocks in MBFC. When combined, these three office towers are capable of offering more than three million square feet of office space. Hence, Marina Bay Financial Centre can accommodate any type of office that any business desire. You just need to take a look at the options available out there and go ahead with the best one. 

MBFC Tower 1 –

MBFC Tower 1 was completed back in 2010. Tower 1 contains approximately 620,000 square feet with floor plates averaging 20,000 square feet. It is currently fully leased to international banking and financial institutions such as anchor tenants Standard Chartered Bank, Baker & McKenzie, The average ceiling height is around 2.75m. It has got a central air conditioning system with chilled water. Multiple lift zones are available to make easy access to different levels of the tower. The car parking lot has space for 116 cars with secured access to the lift lobbies.

Situated on Level 11 of Marina Bay Financial Centre Tower 1, This Business Centre offers best-in-class serviced offices and workplace amenities with maximised views and high quality furnishings. The premium corporate environment and comprehensive business services at this centre allow you focus on what matters you – driving your business. For SGD1100 per pax /month, you can establish a great business presence in this tower in this luxuriously designed business centre.

MBFC Tower 2 –

MBFC Tower 2 was also completed back in 2010. Tower 2 spans approximately one million square feet with floor plates averaging at 25,000 square feet. Fully leased to multinational institutions such as American Express, BHP Billiton, Bank Pictet, Barclays, ICAP, The Macquarie Group, Murex, Nomura Singapore and Servcorp. Tower 2 also offers full bank services from UOB and OCBC. Fullerton Health resides in the first floor of Tower 2, providing healthcare solutions and services to tenants and customers. The average ceiling height is 2.75m except for level 18 and 37. In these two levels, you will be able to discover a ceiling height of 3.5m. The central air conditioning system and the system for providing chilled water are available in this tower as well. There are multiple lift zones with secured access to the lift lobbies. You can find a relatively larger car parking lot in the second tower, where you can accommodate up to 331 vehicles.

On 39th floor, this Serviced office is designed with a modern exterior and interior, as you walk out the elevator, the large granite reception area with views overlooking Marina Bay Sands offers an unforgettable experience to any visitor. Besides great views, the impressive boardrooms, meeting rooms, business lounge and exclusive pantry make this location with no doubt the best serviced office in Singapore. Starting price is from SGD700 per person /month.

MBFC Tower 3 –

MBFC Tower 3 was completed in 2012. Offering close to 1.3 million square feet of office space, Tower 3 has floor plates ranging between 29,000 to 45,000 square feet. It has on average 2.8 m ceiling height, and a large car park with 357 lots. DBS Bank is the anchor tenant at Tower 3. Other tenants include Ashurst LLP, Clifford Chance, Mead Johnson, McGraw Hill Financial, Lynx Energy, Geo Energy, Regus, Wong Partnership and Fitness First.

A large food court operated by NTUC FoodFare offers a variety of local favourites, along with other F&B outlets at Tower 3. A DBS auditorium and a retail banking hall are also located at Tower 3 to meet the daily needs of the office professionals.

The business centre in this tower is located on the 17th floor overlooking Singapore’s impressive Marina Bay. Price starts at SGD1200 per person /month.

What benefits can you experience by going ahead with rent serviced offices in MBFC?

When you go for an office space offered at Marina Bay Financial Centre, you will be able to take your business to the next level. In other words, you will be able to get a central business district address  in the best district for your business. This will add more value and reputation to the business, which can expose you to a wide spectrum of opportunities. In fact, the district that Marina Bay Financial Centre is located can also be considered as the most prestigious district, which you can find in Singapore CBD.

The office spaces available at Marina Bay Financial Centre can accommodate any form of business nature.  Based on the current existing tenant profile, it will really suit businesses that belong to banking, financial services industry, energy, legal and technological sectors. If you are managing a business in any of these industries, you can think about relocating to Marina Bay Financial Centre without keeping any doubts. You need not rent a whole floor or a large floor space for your business , even if it does not require that much space. By renting a serviced office, you can just rent that space required  that comes with a prestigious address which normally only well financed multi nationals can afford. 

You can also save a considerable amount of money by renting a serviced office. That’s because you are only paying for the space that is needed by the team. You will then be outsourcing all the other facilities, which are needed to keep your business up and running. For example, you will be outsourcing the cleaning work, reception service and even meeting rooms. You will be paying for them separately and it will help you to save a lot of money in the long run. You can simply go ahead with a Plug and Play Solution and set up your business.

As you can see, renting a serviced office in Marina Bay Financial District can be considered as one of the best investments that you can do towards the future of your business. Therefore, you are encouraged to take a look at the prices of serviced offices in MBFC and go ahead with the best option out of them.

Besides MBFC, you are strongly encouraged to look at neighbouring office towers at Asia Square Tower 1 & Tower 2  and the brand new Marina One where established Grade A tenants are, i.e Citibank, Facebook and Grab.

The above area remains to be the most prestigious and the most in demand business district where all enterprises and Multi nationals will love and desire to be in.

Please contact us should you wish to have a business presence here by having a office here.