Cost Comparisons

On a pure price per sq. ft basis, serviced offices ARE more expensive, but this additional cost is often outweighed by the fact you are paying for just the space your business needs. Serviced office rates also exclude common areas like meeting rooms, corridors and the pantry, which easily takes up 40% more space and needs to be factored in traditional leases, so your actual sq ft needed in serviced offices is much less, and so is your total rent.
In addition, serviced office rent includes almost all of the hidden costs that you would normally expect to pay on top of rent in a traditional office – like business rates, stamp duties, light, water & power, security, cleaning, building & plant maintenance, insurance, broadband internet, etc. Neither are there charges for office furniture, conference / meeting equipment, LAN cabling, WiFi, PBX telephone systems, professional staff and more.In fact , studies by the UK Chartered Institute of Purchasing (CIPS) show that serviced offices can provide cost savings of up to 78% when compared to conventional leases.
Traditional Office for 2-3 Persons
Serviced Office for 2-3 Persons
A) One-Off Start-up Costs  
Agents/Surveyor/Legal Fees2,000-3,000Inclusive in Rent
Fitting Out (Carpets, Partitions)5,000Inclusive in Rent
Air-Con Upgrades2,000Inclusive in Rent
Mechanical & Electrical Works5,000Inclusive in Rent
Furniture & Equipment5,000Inclusive in Rent
CAT 5e/6 Cabling1,000Inclusive in Rent
PBX & Telephone Systems3,000Inclusive in Rent
Connection & Lease Terms - ISPs & Telecom1,000Inclusive in Rent
Staff Recruitment Fees2,000Inclusive in Rent
Removal Fees1,000Inclusive in Rent
Management Time Spent to Oversee ProcessUp to 6 monthsNone - Immediate
B) Monthly Recurrent Costs  
Rent (2-3 persons)2,000-3,0002,000-5,000
Rates & Service Charges200Inclusive in Rent
Building Insurance Fees100Inclusive in Rent
Property Taxes / Stamp Duties200Inclusive in Rent
Light, Water & Cleaning Costs500Inclusive in Rent
Accountancy & Admin Costs200Inclusive in Rent
Building & Equipment Maintenance Costs100Inclusive in Rent
Furniture & Equipment Depreciation Costs200Inclusive in Rent
Dilapidations Provision200Inclusive in Rent
Security Staff500Inclusive in Rent
Receptionist's Salary1,500Inclusive in Rent
Secretary's Salary2,000Inclusive in Rent
Pantry Expenses100Inclusive in Rent
Total>S$8,000 per monthS$2,000 to S$5,000 per month
C) Miscellaneous Costs  
Lease CommitmentMinimum 2-3 years1 month
Lease Security Deposit6 months2 months
Break LeaseNo break clause allowed1-2 months notice
Expansion/Downsizing OptionsNoneFully Flexible
Networking with CompaniesNoneMany Related Businesses
Professional Bilingual StaffTraining NeededFully Trained Professionals
Upgrade Latest Office TechnologyAdditional InvestmentInclusive in Rent
Money-Back GuaranteeNoneInclusive in Rent
Total Start-Upp Cost (1st Month)>S$36,000S$2,000 to S$5,000 per month
Monthly Costs>S$8,000 per monthS$2,000 to S$5,000 per month
Occupation Costs (3 Years)>S$316,000S$72,000 to S$180,000
Savings0%43% to 78%