Tenant’s Resources
Navigating Your Office Lease: A Tenant's Guide to Getting It Right:
Securing an office lease is a major commitment that directly impacts your costs, operations, and growth.
For new market entrants, it’s especially critical.
Navigating an unfamiliar market and complex legal agreements can be risky. Without local expertise, you may face hidden costs and inflexible terms that hinder your business.
This page provides the essential knowledge to:
Avoid costly mistakes and unexpected clauses.
Negotiate for flexibility to scale as you grow.
Secure a strong foundation for your business success.
Make your first office a strategic advantage, not a liability.
A brief overview on how you can get thing started and what are the essential stuff involved.
Find Office Space
A brief overview on how you can get thing started and what are the essential stuff involved.
Market Practises & Common Terminology
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Rental & Service Charge
Rent: Quoted as a gross figure (S$ psf/month), covering base rent and service charge. Paid monthly, plus GST. ( Goods Service Tax )
Service Charge: Covers air-conditioning, maintenance, and security. Typically S$1.00 – $1.30 psf/month.
Subject to periodical review and changes
Lease Period
Lease Period: Standard is 2-3 years. Leases of 7+ years must be registered.
Option to Renew
Usually for 2-3 years, with rent review to prevailing market rates.
Possession Date
Agreed date between all parties for tenant to take possession of the unit.
It can be anytime from 2 weeks to 3 months before the actual lease start date.
Lease Commencement Date
The date when rent payments officially begin.
Typically rental payments are made monthly.
Fitting out Period
The time between possession and lease commencement for renovation. Rent & Service Charges are often waived, but there could be exceptions.
Rent Free Period
An agreed period within the lease term where no rent is required to be paid.
This normally happens during the fitting out period.
Security Deposit
3-6 months’ gross rent, refundable at the end of the lease without any interest
The actual amount payable largely depends on the amount of paid up capital of the enbtity of the Tenant in ACRA.
Typically the standard requirement for the Tenant is to have at least 6 months worth of rent in the paid up capital to qualify for a 3 months security deposit.
Legal Fees
Tenant typically bears the landlord’s legal fees for preparing the lease.
Stamp Duty
A tax payable for execution of legal documentation in Singapore. Payable by the tenant to IRAS. For a standard 3-year lease, it’s 0.4% of the total rent.
Pls see actual stamp duty calculator here
Renovation Deposit for Fitting out
Payable to Landlord before fitting out takes place. Amount is around S$10,000 or S$1 psf, refundable after fit-out, to cover potential damage to common areas.
Reinstatement
Tenant must restore the office to its original, bare condition at their own cost at the lease expiry , although there maybe exceptions.
Letter Of Intent
A non-binding document outlining the agreed key commercial terms & conditions.
It sets as a good reference for the terms to be further prescribed in Letter Of Offer / Lease Agreement which are legal binding.
Letter of Offer ( LOO )
Upon agreement of the key commercial terms of the LOI, both parties will enter into a legal binding Letter Of Offer with the same agreed terms and conditions.
Payment of the advance rental , security deposit , legal fees and stamp duty typically take place at this stage.
Lease Agreement ( LA )
Lease Agreement is a legal binding document , that not only states the key commercial terms of the rental , as well as more details such as covenants , warranties etc.
Office space calculator
Our office space calculator makes is easy to determine how much space you need. So that you can view recommended spaces and better manage your office space search.
The Process
Summary of a outline of the entire office leasing process from sourcing, right up to talking possession of premises.
Associated costs
Direct and ancillary costs involved with leasing an office.
Step 1
After confirming the choice of the unit , Agent should prepare a Letter of Intent with all the proposed and agreed terms of conditions of the lease to submitted to the Landlord.
Shortlist ID & fitting- out contractors
Step 2
Landlord agrees to terms of LOI , Landlord appointed Lawyer to issue Letter of Offer to Tenant.
Tenant to sign the LOO along with payments of advance rentals, security deposit , legal fees and stamp duty.
Confirm appointment of ID and Fitting out contractors.
Step 3
Signing of the Lease Agreement.
Appointed ID and Fitting out contractor to start prepatory work for all renovation works , and application for all work permits for renovation works., and also payment for deposit for renovation.
All renovation works are subjected to approval of the Fire safety authorities with the help of a QP ( Qualified Person )
Under the lease agreement conditions, Tenant is required to also purchase a Insurance policy that covers the premises that includes fire and public liability. Ensure this is purchased before taking possession of the premises and commencement of renovation works.
Step 4
Take Possession of premises- This is when the fitting out works commence with all permits approved.
Depending on the size and extend of fitting out works , it ranges from 4 to 12 weeks.
Once all fitting out works are completed, Landlord will inspect the premises. If no outstanding issues or damages , the renovation deposit will be refunded to Tenant without any deductions.
Step 5
Move into new premises.
Step 6
Lease commencement.
This guide outlines the typical financial costs and responsibilities for a commercial tenant, covering taxes, fees, deposits, and other recurring charges.
Taxes
Goods and Services Tax (GST)
A 9% GST is applicable to all rental payments.
Tenants who are registered for GST can typically claim the GST paid on rent as an input tax credit.
Stamp Duty
This is a one-time tax levied on the lease document, payable by the tenant.
The duty is calculated at 0.4% of the total rent payable over the entire lease term.
As a general estimate, this cost is approximately 15% of one month’s rent.
Legal fees
The tenant is typically responsible for all legal costs associated with the tenancy agreement.
This includes their own legal fees and often those of the landlord.
If the landlord uses a standard template, the cost may just be a fixed administration fee.
If significant negotiations and amendments are required , there maybe additional legal fees chargeable to the tenant by the Landlord’ lawyer.
Agency / Broker Fees
No fees are payable by the tenant. Agency commissions are covered by the landlord or Landlords’ agents.
However there could be exceptions.
Security deposit
A refundable cash deposit equivalent to 3 months of gross rent (inclusive of service charge and government rates) is required.
The deposit is returned at the end of the lease, without interest.
If the tenant’s paid up capital is less than 6 montsh worth of rent, then the tenant is required to furnish a 6 months worth of cash rental as security deposit. However tenant is able to increase their paid up capital at a later stage , for a possible refund of the additional security deposit required.
Advance Rental
Upon signing the Letter Of Offer or Tenancy Agreement, an advance payment of one month’s gross rent (inclusive of service charge and GST) is typically required.
Recurring charges Insurance
The tenant is required to secure their own insurance policies, which typically include:
Contents Insurance: For their own property and assets.
Public Liability Insurance: To cover incidents occurring within the leased premises.
Property Tax
While property tax is payable by the landlord, the cost is invariably recovered from the tenant through the service charge.
Any future increases in property tax will also be passed through via the service charge
Carpark fees
Allocation: The number of parking lots is usually proportionate to the floor area leased, with an average ratio of 1 lot per 1,000 to 3,000 sq ft.
Cost: Parking is charged separately from office rent, typically ranging from $250 to $500 per month, per lot (excluding GST).
Additional Spaces: Subject to availability, extra parking may be offered on a quarterly basis.
Add Your Heading Text Here
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Add Your Heading Text Here
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Click to download PDFs
FAQs
I need an office space tomorrow! Are you able to get me an office this fast?
Absolutely ! In our course of businesses , we have helped many clients in leasing office space of their choice in their desired locations many times. However this is subjected to availability. Given such availability, most flexible office space providers will and can allow you to move as fast as 24 hours , with the completion of all paperwork and payment which are very much simplified , compared to hassle of the overwhelming paperwork and procedures of leasing a traditional office space.
What are Flexible Workspaces ?
Flexible Workspaces also known as shared office space, are specially custom made commercial office space for businesses and individuals to use with no fixed or flexible lease terms and also allows businesses from one single person or an entire team to lease. This type of office space is fitted with basic equipment and furnishings, like desks, and chairs. and facilities like meeting rooms, board rooms, pantry etc. Most Flexible Workspace falls into this 2 main categories- Serviced Offices and Co-working Space.
Are our services Free of Charge ?
Absolutely 100 % free and non-obligatory.
Why should i deal with you, instead of going directly to the office/ workspace provider?
When sourcing for a office space, either for yourself or your team, it’s always the very best deal that you want to land. Not even the 2nd best will settle. Comparison of your options on your own is a very tough proposition especially when you have better business to focus on. Due to our comprehensive knowledge and database, we are able to provide you with the widest range of options that are available in the market with a complete impartial overview of your options. We also conduct a comparative analysis on your behalf, this allows you to pick and choose the most suitable options to tour, lease and move in eventually in the shortest time possible.
Also due to the extensive partnership and strong relationship we have with all of the Vendors & Providers, our clients are not only guaranteed the same rates but even better ones.
Will you allow us to negotiate with the providers directly?
Yes. Of course. We believe in conducting business in a completely transparent and honest manner. By facilitating open channels of communication between both parties have greatly helped in clients in touring and moving into their ideal office space in the swiftest manner possible.
So how does it work?
| > | Just submit your enquiry to us. We will contact you and send you a shortlist of office space with your desired requirements. |
| > | Viewings will be arranged accordingly to your schedule. |
| > | We will then analyse the findings with you after the viewings, so as to select your ideal office space among those you have viewed |
Our professionally trained team will help you to connect to the best flexible office and workspace providers that can greatly enhance your business activities. You will have many opportunities to ramp up your business connectivity in Singapore, Hong Kong, Bangkok, Kuala Lumpur, Shanghai, & Beijing in Asia. It is our commitment to assist you to improve your business performance and reduce your costs.
If you have a burning question that did not appear above, please contact us here