FAQs / Resources

Resources and Advice on renting offices in Singapore

Leasing Fitted Office Space – What tenants need to know

When looking for office space for rent, most tenants should start with checking whether there are any fitted office spaces available for lease.

Read more on how to find fitted office space

How Much Does It Cost To Rent an Office in Singapore?

There is now a widening rental gap (per sq ft per month) within The Financial District between the very top tier of the market - Premium Grade A, upper mid-range and economy range.

How Much Does it cost to Fit Out an Office in Singapore – 2023

As a general rule of thumb, a basic office fit-out would cost in the region of S$70.00 per sq ft to S$80.00 per sq ft ...

Tenant Advice

So you think your rent is fixed for the whole term of your lease? Think Again!

What is the difference between ‘Effective’ and ‘Asking’ Rental Rates?

Many tenants ask what is the difference between the effective rental rate and the asking rental and how is the effective rate calculated. The asking rate is exactly that, it is what the landlord officially quotes for any given building. However, most tenants need to know what the likely ‘bottom line’ actual rental overhead will be, after negotiations. This is known as the effective rate.

The bane of redevelopment break clauses in office leases. What can tenants do to deal with them?

One of the most contentious and increasingly common clauses in modern commercial property leases in Singapore, is the landlord’s right to pre-terminate the lease, in the event they decide to redevelop the building.

Could co-working space be the solution you are looking for?

The traditional perception is that those who rent co-working space are often new start-ups with staff strength of 2-4 people, but increasingly this type of office is being used by some of the largest companies in Singapore

Find out more on Co-working spaces in Singapore

A selection of frequently asked questions about lease agreements in Singapore

Why are there two prices quoted in the lease agreement?

The two figures, namely "Rent" and "Service Charge" are broken down to show

"Rent" payable for the premises and
"Service Charge" associated with tenant's contribution toward the apportioned costs and expenses for services (like central air-conditioning) supplied in relation to or in respect of the Building (common areas and shared facilities like toilets, pantry etc.).

In most cases, rent will be maintained as per the agreed terms throughout the lease, while service charge may be revised anytime during the terms of lease whenever necessary.

Why does the landlord have the rights to revise "Service Charge" during the lease term and is this clause negotiable?

"Service charge" is payable by all tenants of the building and fees (based on per square feet/metre) are the same regardless of the leased space. The revision of service charge may be due to changes in utility rates or tariffs imposed by the service provider and/or statutory boards. Any revision will be imposed on all tenants and for reasons of fairness, landlords will not allow any tenants to be exempted from the change.

Why do tenants need to bear the increase in property tax when they are not the owners of the property?

The landlord is responsible to pay property tax for the annual value that is up to the annual rent for the premises paid by the tenant based on the prevailing tax rate. The tenant is only required to pay the difference in property tax if the annual value of the premises exceeds the annual rent for the premises and/or the tax rate is revised upwards. The costs are imposed on all tenants and for reasons of fairness, landlords will not allow any tenants to be exempted from this.

Insurance – Why do tenants need to take out insurance policies for the premises?

It is imperative that tenants take up adequate insurance policies to protect them against any theft, loss or damage to their property within the leased premises in the event of fire, any unforeseen or unfortunate situations, as the landlord's insurance coverage will mainly be in the common areas and the structure of the building.

What does yielding up and reinstatement at the expiry of term mean?

It is the duty of tenants to yield up and reinstate the lease premises back to the original bare condition at the expiry of the lease regardless of the unit's handover condition. However, landlords will generally as much as possible pre-market the unit in the fitted up state to tenants interested in taking over the fittings/fixtures.

Why do tenants have to pay the landlord's lawyer's fee when they are not acting for me.

For Singapore's commercial market, it is common practice that tenants pay for the landlord's legal costs when a landlord engages a law firm for the preparation of legal documents and providing advice in the event of any comments and enquires from tenants on the lease agreement. This is not negotiable. Tenants however, do have the option on whether to hire lawyers to review and advise them on the lease agreement. For situations when only an administration fee is charged, legal fees may still be payable if there are substantial changes to the original legal documents as the landlord will seek a lawyer's advice.

Why is there no pre-termination clause in the lease agreement?

Commercial leases, unlike residential, do not allow pre-termination of leases or provision of diplomatic clauses. More commonly practiced will be for out-going tenants to novate/assign the lease to a new party in order to be released of their obligations. All expenses which arise out of the pre-termination process will be borne by the out-going tenant.

8 Are we able to sublet the premises?

Subletting of space is not allowed under the terms of the lease. Exceptions though can be made for associate/sister companies of the main tenant to share or sublet the premises with the landlord's agreement. In any case, there should be no monetary gains to be made by the main tenant.

Why is there a redevelopment clause?

A redevelopment clause is commonly present in lease agreement in the event that the owner of the building have intentions to redevelop or plan major improvements/refurbishment works. Tenants will need to ensure that a fair amount of notice period be given for relocation to take place. There will however, be no compensation given to tenants whether they are a new or a long term tenant.

More reading
The bane of redevelopment break clauses in office leases. What can tenants do to deal with them?

Option to renew – When?

Tenants typically need to inform the landlord 3, 6, or 9 months (sometimes longer for much larger space users) ahead of their intention to renew or return the premises. This is to allow the landlord sufficient time to market the space to the next tenant, and tenants should also take note of the notice period in order not to jeopardize their relocation plans.

Who can execute the Letter of Offer and Lease agreement?

A Director or Authorised Representative of the company as reflected in the company business profile will be able to sign off the legal documents. Any other person not listed in the business profile will require a Board resolution.

What Does the service charge in the gross rental cover?

Typically this includes the following

Electricity costs and chilled water for running of the centralized air-conditioning during normal office hours.
Cleaning, lighting and maintenance of the common parts.
Provision of security guards and general security costs.
Property Tax.
Building Insurance.
Water costs for restrooms / showers etc.
Running the Fire Alarm system.
Maintenance of the lifts.
Cleaning of the exterior walls/ glass.
Usually averages out to S$1.10 – S$1.30 per sq ft (included in gross rent).

Why? Benefits

Covers ALL units available, including:

Confidential space or breaklease cases not on the open market
All units that landlords / other agents are marketing
Shows Lowest Negotiable Rates
Our website can only show official Asking Rates

What do Asking Rates include?