Cost Comparisons - Serviced Offices Vs Traditional Offices

"The popularity of serviced offices can be attributed to the tremendous levels of flexibility provided and to just how easy they are to occupy. In many cases they are also substantially cheaper than conventional space."

Cost Comparisons

With serviced offices, you only pay for the space you need and the services you use. Unlike conventional leases with their inherent hidden taxes and costs, all fixed costs of your serviced office are covered in a monthly payment to the business centre management.

Whilst costs may look high initially, the rent you pay includes almost all of the hidden costs that you would normally expect to pay on top of rent in a traditional office. There are no additional costs for business rates, light & power, security, cleaning, building & plant maintenance, insurance, etc. Neither are there charges for furnishings which are normally the latest workstations with chairs, filing systems and tables for conference / meeting rooms, and all Corporate Serviced Offices locations are fully fitted out with CAT5e / CAT6 cabling (including WEP / WPA-encrypted high-speed wireless LAN functionality) for integrated voice and data networking. In addition, traditional cost per sq. ft. can be misleading because you find you need far less sq. ft. per person in a serviced office than in a traditional office. This is particularly true when rates quoted for Corporate Serviced Offices excludes common areas like meeting rooms, common corridors and the pantry, which needs to be factored separately in traditional leases.

78% Cost Savings For Serviced Offices

Independent studies by the Chartered Institute of Purchasing (CIPS) in UK in 2001, 2002 and 2004 showed that serviced offices can provide cost savings of up to 78% when compared to a conventional lease option. Equivalent savings have also been found for other countries like Singapore (see below). A Corporate Serviced Offices serviced office thus provides speed, convenience and also significant cost savings over time.

Comparison of Traditional Leases and Serviced Offices in Singapore

	Traditional Office for 2-3 Persons (S$)	Serviced Office for 2-3 Persons (S$)

	2,000-3,000
	5,000
	2,000
	5,000
	5,000
	1,000
	3,000
	1,000
	2,000
	1,000
	Up to 6 months	None - Immediate
	>S$28,000	S$0


	2,000-3,000	2,000-5,000
	200
	100
	200
	500
	200
	100
	200
	200
	500
	1,500
	2,000
	100
	>S$8,000 per month	S$2,000 to S$5,000 per month


	Minimum 2-3 years	1 month
	6 months	2 months
	No break clause allowed	1-2 months notice
	None	Fully Flexible
	None	Many Related Businesses
	Training Needed	Fully Trained Professionals
	Additional Investment
	None

	>S$36,000	S$2,000 to S$5,000 per month
	>S$8,000 per month	S$2,000 to S$5,000 per month
	>S$316,000	S$72,000 to S$180,000
	0%	43% to 78%