When searching for office spaces in Singapore, among the most vital factors in deciding the purchase is the location and the cost of office rental. The office rental Singapore Costs vary among different districts and locations of the same district, particularly in Singapore CBD, so it would be difficult to know the amount that you’ll pay when you wish to lease office space in Singapore.
Rental rates guides for office for rent in Singapore are efficient for businesses to get an idea of the average office space rent in different districts that help businesses in narrowing down areas that they must focus on with the rental budget.
How to Calculate Office Rental in Singapore?
When you’re searching for a residential space, real estate agents tell you the total monthly rent that you would have to pay. For instance, for a house having 8,000 sq. feet of land size, the agent tells you asking monthly rent of $12,000.
Whereas, in the case of office rental space in Singapore, the commercial agents typically quote rent per square foot monthly. When enquiring about 5,000 sq. feet office space, the leasing agent tells you that the rate of rental space is around $11,000 per sq. foot monthly rather than $55,000 per month.
Why is it so? In residential real estate, the visiting properties or renting have fixed built-up area and land area. However, for Singapore office leasing, the landlord can consider subdividing space into a little floor area if you don’t need too much space or amalgamate the two even with multiple adjoining office units in a large office space for meeting requirements.
Due to this when visiting the office rental space, the tenet gets charged at sq. foot monthly depending on the acquired floor areas. So the rent calculation is done by taking a rate of rental (i.e. per sq. foot monthly) by multiplying the total floor area of the rental space. It offers you monthly rent.
Singapore Office Rental Rates
Office rental rates can vary between locations, buildings and districts. According to data from the authority, in the initial 3 months in 2021, the median traditional office space rent in the city was around $2.51and around $7.95 per square foot monthly with 665 concluded leases. It means that the average office space of 2,000 sq. feet costs around $5,020 to around $15,900 monthly.
The office rent in Singapore rose to around 10.46% in the 2021 first quarter compared to the previous 2020 quarter. The latest transaction data also represents a 1% decrease from the same time in the previous year.
The affordable rental office locations in Singapore are Little India in District 08, Bugis in 07 District, and Bukit Timah District 21. At the other end, the most expensive areas are grade A office buildings in Raffles Place, Marina Centre, and Marina Bay, District 01, where medium office rent rates can reach around $11.88, $8.69, and around $9.78 per sq. foot monthly respectively.
Within Singapore, many areas are available where it is possible to get an affordable office lease. While Marina Bay and Raffles Pace’s new financial district are the most expensive areas, great deals are available in Cecil Street and Tanjong Pagar.
Besides location, various factors are affecting the rate of office for rent in Singapore, including the building maintenance, age, and office space specifications, office size, tenant mix, office space, along with all available facilities.