OFFICE BUILDINGS & CONSERVATION SHOPHOUSES - FACTORS INFLUENCING CHOICE OF OFFICE SPACE

Abstract

In recent years, the demand for office space has been increasing rapidly due to changes in the government's goals and objectives for the nation, and regionalisation of many multi-national corporations. This, coupled with limited supply in the short run has caused rents and capital values of office space to increase significantly. Accommodation costs have therefore increased and some firms are now resorting to taking office space in conservation shophouses. This research attempts to study the differences between office buildings and conservation shophouses, and the factors influencing a firm's choice of office space. It was also the author's interest to study the current office market performance. A survey was undertaken to gather the responses affirms, occupying in conservation shophouses, towards the factors which influence their choice of office space. The factors were identified by office agencies who know the behaviour of office users well. These 12 factors will be discussed individually. It was found that the respondents only regard Area, Characteristics of Conservation shophouses, Rent and Price as very important factors influencing their choice. As conservation shophouses are leased on gross floor area basis, they have a lower efficiency and this is not acceptable to many firms. Next, the characteristics of conservation shophouses are extra incentives for firms, that are involved in creative works or of foreign origin, to use these shophouses as offices. These are the firms that appreciate and treasure the conservation shophouses. Rent and price have great influence in the choice of office space. This is due to the substantial differences in the rent and price of office buildings and conservation shophouses.