Renting Your First Office Space: 5 Questions To Ask Yourself

For first-timers, renting office space in Singapore can be overwhelming. But why do startups experience this? Being unaware of your cash flow or the outcome of your business in the next six months, you must maintain flexibility.

Since you are renting an office space for the first time, you need to ask questions concerning the short and long-term goals of your leased space. You certainly do not want to get tied down by the wrong lease because it will be detrimental to your business.

In this article, we will delineate the major questions every entrepreneur should ask before signing any lease agreement.

Will My Company Experience Changes That Might Affect My Future Space Needs?

An office space that accommodates your business operations now may not have that same capacity in the next one to two years. If you select an office space based on the amount of workforce you anticipate to have in a year’s time, you stand a chance of outgrowing that space before your contract expires.

That being said, you need to plan for a longer period; if possible, rent an office space that will accommodate your employees 24 to 36 months down the road.

Will I Need To Invest In Improving The Space Or Is It Move-In Ready?

If you wish to make any changes after renting office space, you must understand that you will solely bear the cost. In Singapore, most rental offices are leased out in a bare condition; therefore, you must take that fit-out costs to your plan.

On the other hand, you can find an outgoing tenant with a furnished space and convince him to pass the office down to you in a fitted-out condition. However, it attracts some costs, which is always lower than footing the bills of an office upgrade.

Will The Rent Increase In The Future?

Some lease terms feature an annual percentage increase, but they are clearly spelled out in the lease agreement. To prevent the rent from skyrocketing, negotiate with the landlord. There is a tendency that he will revise it to prevailing market rate to be negotiated upon the renewal.

Also, study the local market and be up-to-date with the general market trends to avoid being taken advantage of.

How Does Location Affect My Business?

Though this mostly applies to retail businesses, it is important to consider the effect of a particular location on your business. Situating your business on the right spot will help you attract talents, grow your brand, and be competitive.

If your company’s success largely depends on a particular location, then you might want to opt for a long-term lease. Conversely, if your business is not location-driven, apply some flexibility while renting office space.

Will I Pay A Lower Rental Fee If I Opt For A Long-Term Lease?

This question is tricky. A lot of business owners believe that signing a long-term lease contract earns them the perfect deal. Although some landlords will be happy with the agreement and possibly offer you mouth-watering incentives, it doesn’t make the deal valuable for your business.

Office space leases are longer and more complex than residential leases. While renting office space in Singapore, ensure you ask yourself the right questions as they will assist you in negotiating a deal that will be suitable for your short and long-term business plans.