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If you are looking for a break from the staid, monotonous office tower environment, shophouses are a refreshing alternative. Relics of Singapore’s colonial days, these buildings are finding new lease of life as charismatic office spaces for those who desire a place with a little bit more wow factor. Besides the unique appearances, shophouses are well-located with excellent frontage and offer greater flexibility in terms of usage. This probably explains why shophouses are popular with new start-ups, boutique IT or creative firms and F&B outlets. In this issue, Karen Tan shares more about these endearing buildings that had witnessed Singapore’s development since the early days.
"Most of my clients from the media, interior design and creative industries prefer to use shophouses as their offices because the historical and aesthetic connotations give their corporate brands a unique vibe. On top of that, you have more control over the interior décor, air conditioning and facilities like pantry or toilets. Of course, the relatively lower rents compared to CBD office buildings is definitely a lure too!” Karen laughs. A 10 years real estate veteran, Karen has seen her fair share of shophouses all over Singapore, and quoted Duxton Hill and Ann Siang Hill as two of her favourite districts. “Both are conveniently tucked in the heart of CBD, yet untouched by the city’s hustle and bustle. With such ideal location, good frontage, unique architecture, and charming ambience, it’s hardly a surprise to see an array of businesses taking root here. Take this new start-up iQNect at Ann Siang Road for example. They caught my attention with their tasteful fit out which is comparable to a grade A office in a high rise office tower! Exploring shophouses is like a treasure hunt. There’s always something interesting going on beneath the facade!”
Unknown to some, Singapore’s shophouses come in a variety of style and layouts, depending on the era they were built and districts they are located in. From the early style of 1840s found along North Bridge Road to the Chinese Baroque of the 1900s along Amoy Street and the Art Deco style in 1960s along Ann Siang Hill, these buildings are in hot demand by investors who will often buy over the building, renovate it and then lease it back to the public either as residential units or commercial and retail spaces. Iconic shophouses that have been readapted for residential or commercial activities include boutique hotel The Scarlet Singapore located in Erskine Road and the Tong Ah Eating House along Keong Saik Street that was recently taken over by the renowned Balinese restaurant chain Potato Head Club.
But leasing a shophouse is not entirely a bed of roses. Since there are a limited number of shophouses in Singapore, increase in rental prices are to be expected. Other issues such as building maintenance, water leakage, lack of parking space and possible limitations on the actual usable space due to staircases, toilets and attics will affect the premise’s suitability as well. For conserved shophouses in Historic District that encompass Boat Quay, Chinatown, Little India and Kampong Glam, the first storey of the shophouses in the core areas have to be used as shops or eating houses. Only shophouses with concrete floors may be converted into hotels or service apartments.
"Besides supply and demand, the condition and upkeep of the shophouses will determine its value. Business owners who are keen to use shophouses as their offices or business premises should consider all pros and cons before diving in because you might need to make a considerable investment to upkeep your shophouse unit.” says Karen.
Want to know more about renting shophouses? Contact our team today for a non-obligatory discussion.
Cost effectiveness is paramount to any businesses, big or small. That is why we invited Mr Mike Chan, Sales Manager of Verve Offices, to share with us on what fitted offices has to offer to help businesses save costs.
What are Verve Offices all about?
Mike: Verve Offices are a hybrid between traditional bare office leases and full Serviced Offices. We offer cost effective office space ready for immediate use but retain the flexibility to only incorporate and pay for the specific services you need.
What are the amenities provided in a Fitted Office?
Mike: Fitted Offices are individual office suites that are already renovated, furnished and ready for use with minimal setting up or configuration. Amenities include secured entrances via RFID access locks, common waiting/ meeting areas, furnished offices pre-cabled with advanced IT infrastructure and plug-and-play function, and communal pantry and work areas complete with office stationery and machines. Reception, phones or internet services are not included so that tenants only subscribe for the services they need.
What type of clients would be interested in Fitted Offices?
Mike: Fitted Offices can be used as permanent offices, overflow space or branch offices and are particularly attractive to small businesses and start-ups looking for inexpensive office options within the prime CBD area. Our customers ranges from MNC branch offices to mid-sized firms with 12 to 20 employees and sole proprietorships.
Why do you focus on Fitted Offices concept?
Mike: Our Fitted Offices are unique because we give clients the freedom to decide what they want. Clients who find Serviced Offices unsuitable, or who have outgrown the need for such services will welcome Fitted Offices. In fact, our clients have reported an average of 30% to 50% savings on operational costs when they used our Fitted Offices!
There are currently four Verve Offices within the CBD. What is the vision for Verve Offices in the future?
Mike: Although Fitted Offices are fairly new in Singapore, we are getting steady demands from clients looking for ready-to-use space at reasonable prices. More than 60% of our Fitted Office clients have been with us for over 3 years so it is a good testament to our service excellence. We are looking to open more Fitted Offices in Singapore’s CBD and also bring this concept to other Asian cities.
Verve’s Fitted Offices feature individual office suites that are sized from one to ten workstations, and can be combined into larger workstation groupings of any size. All offices are private and secure, complete with ergonomic furniture such as worktables, executive chairs and mobile pedestals. 24/7 access and daily cleaning services are included as well.
However, Fitted Offices do come with minor disadvantages. Businesses may not be able to add a personal or corporate style as Fitted Offices spaces are standardized for convenience. Also, you may only get a directory listing on the floor of the Fitted Offices compared to a listing on the building’s main lobby directory.
To find out more on how Verve Offices can improve cost effectiveness in your business operations, kindlycall us at 6635 4280.
We have witnessed a couple of investment sales in the last two quarters, with Keppel Land completed the sale of Equity Plaza for $550 million to a consortium led by GSH Corporation and Keppel REIT offloaded its 92.8 percent stake in Prudential Tower for $512 millon to a consortium comprising KOP Limited, Lian Beng Group, KSH Holdings and Centurion Global.
Following the sale, Keppel REIT will acquire a one-third stake in Marina Bay Financial Centre Tower 3 from Keppel Land for $1.25 billion. Meanwhile, Vibrant Group has acquired a 51% stake in Shentoncil, which has in turn acquired 100% share capital in Ececil that owns Cecil House at 139 Cecil Street, for $110 million. Vibrant Group has intended to maximize the gross floor area through upgrading and retrofitting work.
With the perspective that commercial real estate investment has been seen as an asset class that only institutional investors or heavyweight high net worth individuals could invest in, one may wonder “Why do I need to know of these news of investment transactions when I can’t afford to buy?” That, however, is changing. Many retail investors and SMEs can now get into the office real estate game.
Today, we see more strata office units available for investments or for own use. Last year, Guthrie has picked up 2HR at 2 Havelock Road while Bright Chambers, a nine-storey commercial building at the junction of Victoria Street and Middle Road has been sold en bloc for $45 million to Arjuno Holdings. 2HR will be renamed as Havelock II and Bright Chamberswill be called The Prospex and both are now undergoing refurbishment works. Havelock II is targeted to complete in 4th quarter 2015 and The Prospex is estimated to be ready in 1st quarter 2015. Smaller strata office and retails units will be introduced and offers both investors and end users an exciting opportunity in Singapore’s tightly held strata market. Guide selling price for The Prospex is $2,300 to $2,400 psf while Havelock II range from $2,150 to $2,600 psf.
In the heart of the financial district, Crown @ Robinson will be launched for sale in 4th quarter this year. This rare freehold commercial development, located at 140 Robinson Road, comprises 86 units of offices and 6 shops and will soon replace the former Chow House. Further details will be announced soon.
In the west, the 70 ha Jurong Gateway around Jurong East MRT station will be the biggest commercial hub with a unique lakeside setting outside the city, providing 500,000 square meters of office space. Located at the heart of Jurong Gateway stands Vision Exchange, a 25-storey office tower featuring 740 units consisting of 640 offices, 53 medical suites and 47 restaurants. This 99 years leasehold development by Sim Lian Group offers great investment opportunity with its excellent connectivity within Singapore and across the causeway with Iskandar Malaysia, Johor. The development is expected to obtain its T.O.P. in December 2018. Office units range from $2,000 to $2,400 psf.
Imagine yourself lounging in your high rise posh apartment, a glass of red wine swirling in one hand while soft ambient music plays in the background. It has been a hectic day at work, but you are now blissfully cocooned in a sophisticated urban lifestyle, a stone throw from where your office is. As your eyes take in the panoramic view of the Marina Bay Sands and Gardens by the Bay glittering against the coming night sky, a smile spread across your face as you look forward to a restive weekend ahead.
High-rise city apartments such as Five on Shenton, Marina Bay Suites, Marina Bay Residences, One Shenton and The Sail @ Marina have become increasingly popular, offering well-heeled executives the conveniences of working and living in the highly vibrant Singapore Central Business District. But such luxuries are no longer exclusive to only residential developments. With greater emphasis on a conducive work environment, high rise offices with breathtaking city views are fast gaining traction with multiple business organisations today, a real-life setting made popular by sitcoms such as Seinfeld, Friends and Sex and the City through the years.
In this issue of Insight, we explore office buildings that offer some of the greatest views of Singapore's concrete jungle.
| 6 Battery Road | Raffles Place |
| Asia Square | Marina Bay |
| Chevron House | Raffles Place |
| Clifford Centre | Raffles Place |
| Income @ Raffles | Raffles Place |
| Marina Bay Financial Centre | Marina Bay |
| Maybank Tower | Battery Road |
| OCBC Centre | Chulia Street |
| Ocean Financial Centre | Collyer Quay |
| One George Street | George Street |
| One Raffles Place | Raffles Place |
| One Raffles Quay | Raffles Quay |
| OUE Bayfront | Collyer Quay |
| Republic Plaza | Raffles Place |
| Tung Centre | Collyer Quay |
| UOB Plaza 1 | Raffles Place |
| Central | Eu Tong Sen Street |
| Centennial Tower | Temasek Avenue |
| Harbourfront Centre | Maritime Square |
| Millenia Tower | Temasek Avenue |
| Parkview Square | North Bridge Road |
| Raffles City Tower | North Bridge Road |
| Suntec City | Battery Road |
| The Concourse | Beach Road |
| The Gateway | Beach Road |
| 78 Shenton Way | Shenton Way |
| ABI Plaza | Keppel Road |
| AXA Tower | Shenton Way |
| Fuji Xerox Towers | Anson Road |
| MAS Building | Shenton Way |
| SGX Centre 1 | Shenton Way |
| Springleaf Tower | Anson Road |
For some businesses, there will come a point in time where it actually makes more business sense to purchase your own office space instead of continuing to lease. If you are considering to become a landlord, we have some good news for you.
Unlike residential properties, investors do not need to pay Seller's Stamp Duty (SSD) and Additional Buyer's Stamp Duty (ABSD) when they purchase office units. If you are investing in office spaces within Sunshine Plaza, you can even enjoy a guaranteed rental yield of up to 4.5% (per annum?).
Sunshine Plaza is a mixed use building comprising retail, residential units and office spaces. Located at 91 Bencoolen Street, with dual frontage on Bencoolen Street and Middle Road, the office units range from 484 sq ft to 6,048 sq ft (for an entire floor). Average prices are between S$1,900 - S$2,000 psf.
How about office units in the prime CBD? While there are no guaranteed rental yields in other developments, new schemes in Robinson Road such as SBF Center, have attracted many investors. Let's take a look at the indicative asking prices for these strata-titled buildings.
| Developments | Location | Guide Asking Price (psf) |
| Central | Eu Tong Sen Street | $3,000 psf |
| International Plaza | Anson Road | $2,000 - $2,100 psf |
| Paya Lebar Square | Eunos Road | $2,400 - $2,500 psf |
| Samsung Hub | Church Street | $3,300 psf |
| SBF Center | Robinson Road | $3,550 psf onwards |
| Springleaf Tower | Anson Road | $2,400 psf |
| Sunshine Plaza | Bencoolen Street | $1,900 - $2,100 psf |
| Suntec City | Temasek Boulevard | $3,000 - $3,200 psf |
| The Adelphi | dColeman Street | $2,500 - $2,800 psf |
With the recent move of DBS, Citibank, Samsung, Cisco Systems to MBFC Tower 3, Asia Square Tower 1, UE BizHub East and Mapletree Business City respectively, the huge supply of office space in the financial district has caused an increase in the leasing activities as office rentals continue to ease.
The recent news of successful leasing transactions and advanced leasing negotiations taking place in The Metropolis, a Grade A building at Buona Vista that is due to obtain its TOP in 2nd half of 2013, has attracted more tenants into considering an out of town office location while not compromising on office quality.
The Metropolis is developed by Ho Bee and will have two office towers and a retail space. It is directly linked to the Buona Vista MRT station on the Circle Line. Tower 1, standing at 23 storeys, is expected to be completed in July 2013, while the 21-storey Tower 2 will be completed around October 2013. The project's total net lettable area will be about 1.08 million sq ft (including 22,000 sq ft of retail space).
In the Central Business District, effective rates for new Grade A buildings have lowered significantly to around S$10.00 to $12.00 per sq ft. In Raffles Place, Grade A buildings ranges between S$8.00 to S$11.00 per sq ft. Along Robinson Road / Shenton Way, rental rates vary between S$6.50 to S$8.50 per sq ft, while Tanjong Pagar / Anson Road range between S$6.00 to S$8.00 per sq ft, depending on the age, quality, occupancy rate and distance from the nearest MRT. Fitted conditions are also key considerations as landlords are usually less negotiable for a nicely fitted unit.
Over at Changi Business Park in the east, newly completed business space at UE BizHub East and the One@Changi City due to be completed by end of 2012 have also secured their anchor tenants; FairPrice and Cisco Sytems at UE Bizhub East and Credit Suisse and EMC for One@Changi City. Rental rates range from S$4.00 per sq ft to S$4.50 per sq ft.
Looking for the ideal office space can be a daunting and time consuming task at times. However, this does not mean that your business should suffer while you seek for that elusive ideal space.
This is where serviced offices can provide a quick and relatively hassle free solution for your business needs. Most serviced office providers are conveniently located within Singapore's Central Business District, and offer a range of top notch serviced office solutions such as fully furnished serviced offices, receptionist services and mail services. This gives business owners the flexibility to operate without the usual hassles of working within a conventional office space.
Feel free to contact us on how Trillion Commercial can assist with your serviced office needs. We are more than happy to share our knowledge with you.
Service office providers have been busy building their presence among office tenants with Regus leading the pack by taking up one floor earlier this year at MBFC Tower 3, one floor at Robinson 77, 2 floors at Grace Raffles Global (fka. 137 Market Street) and 8,000 sq ft at Tampines Junction that will be operational end of this year. Raffles Business Suites has leased 2 floors at One Raffles Place Tower 2 and The Executive Centre has expanded another floor at Ocean Financial Centre. Cityhub Serviced Office, currently operating at Ngee Ann City has also expanded in Raffles City Tower while Corporate Serviced Offices at Tong Building has expanded at Shaw Centre. Another new service office Just Office has started their operations at Samsung Hub. Out of CBD, Servcorp has leased a floor at PSA Building at Alexandra Road.
It has been observed that office rentals between Grade A and Grade B buildings have significantly been narrowed, causing more focus to be placed on Grade A buildings, when it comes to office relocation plans. New grade A offices have witnessed an increase in occupancy rates as companies are making the most of this opportunity to upgrade from their existing office spaces. More 'good-value' units are also highly in demand especially if the condition is nicely fitted and in a move-in condition.
One Raffles Place Tower 2 has been successful in securing such tenants. Media and digital communications company Aegis Media from The Gateway East, moved to this fairly new building, taking up 2 floors. Other new tenants Miller Insurance from Royal One Phillip, has also completed their relocation, so has Markit Asia and Tshin Boto from Suntec Tower 4 and Wilkie Edge respectively. Private equity investment firm Tembusu Partners has consolidated their operations from Royal Group Building at Phillip Street to Equity Plaza. CA Technologies, a leader in Energy Management Software, also consolidated at 16 Collyer Quay from Suntec Tower 2, taking up a whole floor.
On the Marina Bay area, Wirecard Asia Pte Ltd moved to Asia Square Tower 1 from SGX Centre 1. Some other new tenants include Central Steel, Indonesian Oil & Gas company Bumi Hasta Mukti and US fund management company Dimensional Fund Advisors and Liberty Commodities from Tong Eng Building.
However, besides the move to better grade buildings, some IT and communications companies have also expanded and consolidate their operations at business parks. IT company INTTRA, the world's largest, multi-carrier network for the ocean shipping industry moved to One@Changi City from Robinson Road. CITIC Telecom International has also moved to Solaris at One-North and Dell Computer Asia has consolidated its operations at IBP from Haw Par Centre late last year.
Following recent news of more Japanese firms that have started to venture their business into Singapore, it is interesting to note that Japanese firms that are already in Singapore have also expanded or upgraded their business locally. Nikon expanded from Fuji Xerox Towers to Capital Square, while Isuzu Motors and Sony Ericsson moved their business to Centennial Tower and One@Changi City respectively. Henry Investment Services, a Japanese firm that assist fellow Japanese firms to incorporate their business in Singapore, has also expanded twice in size from Equity Plaza to Tung Centre. Head hunting firm JAC Recruitment, on the other hand, upgraded to One Raffles Place Tower One due to the redevelopment of The Corporate Office.
Find out below some other office relocations and the buildings that have experienced much activities.
| Companies | Previous Address | New Address |
| Gearbulk | AXA Tower | 71 Robinson Road |
| Accor Advantage Plus | Palais Renaissance | AIA Tower |
| BSI Singapore | Genting Centre | AIA Tower |
| IHS Energy Group | Tokio Marine Ctr/78 Shenton Way | Asia Square Tower 1 |
| Nikon Singapore | Fuji Xerox Towers | Capital Square |
| General Mills | 36 Prinsep Street | Capital Tower |
| The Embassy Of Republic of Angola | Suntec Tower 2 | Centennial Tower |
| Isuzu Motors | Suntec Tower 2 | Centennial Tower |
| Endurance Specialty Insurance | Maybank Tower | MBFC Tower 3 |
| Gas Supply | TripleOne Somerset | MBFC Tower 3 |
| Kimberley-Clark | Springleaf Tower | MBFC Tower 3 |
| H&M Hennes & Mauritz | Wisma Atria | Orchard Building |
| Singapore Mercantile Exchange | Millenia Tower | Royal Group Building |
| European Chamber of Commerce | Shaw Centre | Royal One Phillip |
| Henry Investment Services | Equity Plaza | Tung Centre |
| Moved into town | Previous Address | New Address |
| AT Kearney | Alexandra Point | ABI Plaza |
| IFB International Freightbridge | Comtech | Valley Point |
| New Balance | Comtech | AIA Tower |
| Teleflex Medical | Parkway Parade | 6 Battery Road |
| Moved into town | Previous Address | New Address |
| Novell Singapore | Alexandra Point | One @ Changi City |
| Sony Ericsson | Comtech | One @ Changi City |
| Petlog SEA | OCBC Centre | Solaris |
| Moved from serviced office |
Previous Address | New Address |
| AQG Capital | One Raffles Place Tower 2 | One Marina Boulevard |
| Evolution Recruitment | UOB Plaza 1 | Anson House |
| LinkedIn Singapore | Ocean Financial Centre | AXA Tower |
| Pierre Fabre | One Raffles Place Tower 1 | SIF Building |
| Preqin | Asia Square Tower 1 | One Finlayson Green |
| Moved due to redevelopment | Previous Address | New Address |
| Aspect Software | The Corporate Office | PWC Building |
| Bank of India | The Corporate Office | 158 Cecil Street |
| China Eastern Airlines | The Corporate Office | Robinson Centre |
| JAC Recruitment | The Corporate Office | One Raffles Place Tower One |
| Mallal & Namazie Solics | The Corporate Office | China Square Central |
| Keystone Law Corporation | Robinson Towers | One Finlayson Green |
| Ong & Lau Solics | Robinson Towers | Beach Centre |
| Shenton Law Practice | Robinson Towers | ASO Building |
| SP Corporation Limited | Robinson Towers | 6 Shenton Way Tower1 |
| APPCO Group Singapore | International Factors Building | 120 Robinson Road |
| Lindeteves - Jacoberg | International Factors Building | The Globe |
Calculating how much office space your business needs is no rocket science. In fact, it can be surprisingly simple. All you need is careful planning, taking into consideration all the variable factors such as the total head count, industry type and whether there are any heavy storage to be brought along to the new premise. Leasing a space that is too small or too large can potentially affect your budget and disrupt your business operations. As a rule of thumb, try to cater approximately 100-150 square feet of office space per person. Please find below some pointers for your considerations:
Lastly, don't forget that you will be signing a lease that will lock you into this office space for at least two to five years. You may want to add 10% to 20% to the total square footage that you have calculated to accommodate future growth. This is crucial as the cost of having this extra space in reserve is definitely lower compared to the cost of moving and having to terminate the lease prematurely. Whenever possible, do consult a professional office space planner or commercial space agency to ensure that you are leasing the right size and facility type for your company.
Once you have considered and reviewed the points above, simply use our Office Calculator tool at www.trillioncommercial.com.sg to help you determine your general office space requirements.
As the economy gathers pace in the last quarter of the 2014, we have seen strong office leasing activities in some interesting business sectors.
The growing interest in overseas properties investment in Singapore has spurred a few renowned foreign developers to establish or expand their sales offices or galleries in Singapore. UM Land from Malaysia took up a 2,000 sq ft space at Anson House’s ground level. Australia’s Crown Group recently opened its office at Suntec Tower Two and Guangzhou R&F Properties opened its Singapore sales gallery at East Coast Road to showcase the first phase of their Iskandar Malaysia project, comprising some 3,200 residential units. Others in the pipeline include London developer Galliard Homes, who will be opening its sales office in Singapore soon and China developer Country Garden Properties who is poised to expand its sales gallery to five times the size of its current one at Tras Street in Tanjong Pagar.
Besides foreign property developers, commercial schools also require prominent frontage to attract walk-in crowds. Kaplan has opened another campus earlier this year in POMO at Prinsep Street to cater for more classes beyond their current location at Wilkie Edge. Accounting and finance school FTMS Global Academy has relocated from Equity Plaza to lease 10,000 sq ft of ground floor space at PWC Building. German language school The Gothe Institu has left Winsland House and leased an entire block of conservation shophouse at Neil Road while UK-based Manchester Business School expanded from Royal One Phillip to 55 Market Street. This underlines the demand for further education even in times of economic uncertainty.
Serviced offices providers is another sector that are on the rise. The Executive Centre (TEC) has recently opened their new centre that occupied an entire floor at MBFC Tower 1 level 12. Verve Offices has leased an entire floor in The Arcade and Regus has added another centre in Royal Group Building located at Phillip Street, with two more new centres opening at Orchard Gateway and Harbourfront Tower One. Just Office will also be setting up their fifth centre at AXA Tower.
Health buffs and fitness enthusiasts will be delighted to see that there is an increasing trend of gyms or fitness centres being set up within the CBD in recent years. Neighbourhood-style fitness club Anytime Fitness, who has 10 other centres located in Singapore neighbourhoods, will be opening their new centre in CBD at International Plaza level 3. For those into Mixed Martial Arts (MMA), Evolve MMA is located in China Square Central and Vanda Boxing Club is offering White Collar Boxing and Muay Thai at Robinson Road. Rough Muay Thai Academy has also expanded at Equity Plaza level 3 by leasing the whole floor.
Last quarter saw a high number of leasing transactions in Asia Square Tower 2, which currently has an occupancy rate of 60% from 30% in 4Q 2013. Office rents are hitting $14 to $16 psf in Marina Bay while rents in Raffles Place are $10 to $13 psf. All eyes now are set on the leasing activities at CapitaGreen located at Market Street. Scheduled for completion in 4th quarter 2014, CapitaGreen will provide 34 levels of grade A office space with a total net lettable area of approximately 700,000 square feet.
It is not too late to make the flight-to-quality with sea view units still available at Income@Raffles. Entire floor sizes range between 6,100 to 8,800 sq ft with an effective rent of $9 psf. Well fitted office units can also be found in 55 Market Street and Royal One Phillip measuring 2,300 to 4,700 sq ft. Newer office developments are offering good-for-value shadow spaces as well. Contact us for more details today!
Looking forward, the completion of two other new premium developments in 2016 (Marina One and Robinson Towers), will provide approximately 2 million sq ft office space. This positive momentum will spur more increment in office rents.
It is likely that your renewal rate in 2014 will not exceed 10-15% increase compared to two years ago due to a stable vacancy rate. However, with more available office spaces in 3rd quarter at SGX Centre 1, Robinson Point and 135 Cecil Street (vacated by Singapore Exchange, CapitaLand and Towers Watson respectively), it is a good opportunity to consider office expansion without compromising on quality. Strata-titled units in GB Building is also a good leasing option with rents ranging between $6.80 to $7.80 psf. Sizes range from 1,200 to 5,400 sq ft. More fitted units are available at Robinson Centre and Robinson 112 at an effective rent of $8 and $7 psf respectively.
In Tanjong Pagar, Mizuho Bank already committed 110,000 sq ft at Asia Square Tower 2 and is expected to move by end of 2014. For organisations looking for expansion with great accessibility to public transport, Capital Tower will be a good consideration.
Suntec City Mall's facelift began in 2nd half 2012 and will be completed by the end of 2014. New features include more entertainment offerings such as a 11-screen Golden Village cinema complex. The relocation of Booking.com and National Australia Bank to Marina Bay Financial Centre means that you now have more reasons to consider leasing an office space in Suntec City with sea view or Kallang River view.
New startups such as Korea's leading LPG import company E1 Corporation and Japan's second largest pharmaceutical company Astellas Pharma have set up their first offices at Suntec Tower 3 while JX Nippon Oil had recently expanded within Suntec Tower 2 by taking up 7,300 sq ft. Meanwhile, Tong Teik has moved from Suntec Tower 1 to Millenia Tower. Pontiac Land's Millenia Tower is now fully leased while Centennial Tower is more than 90% filled.
Over at City Hall, National Art Gallery will be relocating from Stamford Court to their new gallery next to the Padang in early 2015. This upcoming space of 9,000 sq ft will be in line with the target completion of Capitol Singapore, a mixed development with a luxury mall on the site of the former Capitol Building and Stamford House, which is said to have secured several F&B outlets and luxury brands including Chanel and Dior. It will be the most ideal location for SMEs that are looking to expand in City Hall since Raffles City Tower and Odeon Towers are currently fully leased.
As expected, Ngee Ann City, Wheelock Place, Winsland House and Wisma Atria are leading the pack in this vicinity. Average rents for other buildings in this area ranges between $7-$9 psf. Other good leasing options in this area include 51 Cuppage Road, Haw Par Centre, and Macdonald House, where it is possible to achieve an effective rent of $7 psf.
New office development at Orchard Gateway has been fully leased with Regus serviced office taking up level 6 and 7. Office floors starts from level 6 to 11, with an average floor plate of 6,000 sq ft. The remaining four floors are taken by an education centre.
Recent leasing activities at Shell House has seen Estee Lauder confirming 60,000 sq ft while Rohm Electronics has leased half a floor. As of press time, there are two and a half floors left from the space vacated by Shell. The likely effective rent is $7.00-$7.50 psf.
With the relocation of NOL to Metropolis @ Buona Vista, Fragrance Group's office building at 456 Alexandra Road is up for lease following the group's intention to hold the asset for long term rental income. This is a rare lease opportunity for single large tenants requiring branding and naming rights. Given its distinctive location and proximity to Labrador MRT station, the average floor plates in the building ranges from 8,500 to 9,000 sq ft. Another leasing option will be Alexandra Point with an asking rent of $7.50 psf.
Two other significant transactions that took place recently in this region is DSM Nutritional (from Havelock Road) and ANZ Bank moving into Mapletree Business City.
Over at Harbourfront, asking rentals range between $6.80 to $7.80 psf for Harbourfront Centre, Tower 1 & 2. Harbourfront Centre offers 870 to 25,000 sq ft of office space for lease with sea views. Meanwhile, Keppel Bay Tower has been fully leased, with Aimia Proprietory Loyalty regional office taking up the last available space in late 2013.
Ho Bee's Metropolis is now over 90% occupied with MNCs such SGX, Shell, NOL, P&G and GE as occupiers. Nearby building at one-north Nexus (mixed office and business park usage), is also filling up fast. Those intending to move into one-north will have to act swiftly as Galaxis, another new integrated development in one-north, is attracting much attention due to its close proximity to the MRT station. Galaxis comprises a 17-storey business park / office tower, 2-storeys of lifestyle retail and a 5-storey work lofts. Asking rentals range between $6 - $6.75 psf.
Metropolis's popularity has attracted much attention for Westgate Tower and JEM (MND Building)-two upcoming major developments at Jurong Gateway that will be completed and available for lease this year.
Both developments are strategically located in the heart of Jurong Gateway and will add 650,000 sq ft of office space as part of a decentralisation strategy to sustain Singapore's growth. The completion of these two developments bodes well for MNCs who are planning to relocate their operations nearer to their back end offices and warehouses/plants in the International Business Park and Tuas respectively. Asking rents for these spaces range between $6.20 to $6.50 psf.
SMEs seeking to relocate to this suburban area can also consider purchasing their own office units at Vision Exchange, a 25-storey office tower with two levels of food & beverage (F&B) space and medical suites, slated for completion in 2018.
This 99-year leasehold commercial development is a sustainable and energy efficient building with BCA Green Mark Gold Plus award. Average sale prices for office units is S$2,150 psf for medical suites and S$4,498 psf for F&B units.
You may already be aware that there are a couple of new developments completing in the next few years. Let's take a look at the upcoming available space for a gauge on how long your lease term should be.
Prime office building rents are expected to climb in view of the limited new office space and positive market sentiments. With CapitaGreen as the only major development providing 700,000 sq ft of office space in end 2014, there are no upcoming office supply in Raffles Place and Marina Bay until 2016.
A total of five new grade A office developments will be completed in 2016 - Marina One, DUO, Guoco Tower, V on Shenton and the redevelopment of Robinson Towers, providing approximately 3.8 million sq ft of office space. Four of these developments are within the financial district with the exception of DUO, which is located in Bugis.
The upcoming office supply in 2016 will be more than twice the annual average office space take-up rate of 1.5 million sq ft. Having said that, rents correction may take a while to adjust as major office relocations to new schemes are usually carried out in phases. Going forth, 2017 appears to be a potentially better year for flight-to-quality opportunities.
With her composed demeanour and immaculate dressing, it is easy to imagine Jenny as another numbers crunching white collar professional working in the CBD. Well, you are not entirely wrong. Prior to joining Trillion Commercial, Jenny served as a Bank Credit Analyst for five years, but her penchant for exploration and new experiences lead her into real estate and sparked a love affair with Strangers Reunion, a boutique café housed in a conserved shop house in Kampong Bahru. The cafe went on to open a coffee kiosk in The Arcade at Collyer Quay that eventually transformed into a modest outlet today.
“This is my number one coffee place in Raffles Place area. I would drop by whenever time allows to satisfy my daily caffeine cravings, “quipped Jenny. “I am glad that they moved to a bigger space within The Arcade. It makes good sense to capitalise on a larger crowd by offering more seating. Of course, I can rest my aching feet while enjoying my latte too!”
Do a detailed study of the location, including human traffic volume, neighbouring tenants, frontage, and accessibility. These will have direct impact on the business. In recent years, shophouses located at Boat Quay, Telok Ayer, Tanjong Pagar, Neil Road and Chinatown have become popular among restaurateurs looking to attract the working class. Asking rent for these locations range from $7 to $10 psf for ground floor spaces. As for units within shopping malls, the asking rent is between $10 to $30 psf and the landlord may ask for a certain percentage of GTO (Gross Turnover) on top of the rent.
You may need to apply to URA to change the premise use for F&B business, with the supporting floor plans and proposal. For alfresco dining, ORAs (Outdoor refreshment areas) are chargeable for rent. Also, five footway pavement outside of the unit needs to be cleared at all times. For shophouses, the only approved area for cooking is on ground level while the upper levels are only meant for dining purpose.
From getting a Food Shop License to operate a food stall to Copyright Licence for live performance of copyrighted music in your premises, there are numerous licenses that need to be applied, depending on your requirements. You will also need to apply for CPF contribution as an Employer and registering for the mandatory 7% Government Service Tax (GST) if your company’s annual turnover is above S$1 million.
F&B business are required to abide to certain regulations to ensure a safe and hygienic environment. For example, coffee machines utilize quite a significant amount of electricity, so you have to ensure that the electricity loading is sufficient. Some older establishments may face issues with regards to electricity loading, leakages and piping.
Minimum lease tenure usually last for two years. Generally, security deposit will be a month’s gross rent forper year lease signed. However, landlord may request for higher security deposit for F&B business. You will also need to stamp your lease agreement with IRAS.
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