SERVICED OFFICES IN SINGAPORE

Abstract

In this ever-changing dynamic business environment, it is important that firms have a large degree of flexibility to react to market changes. For example, in recent years, we saw the rise and fall of the Information Technology (IT) industry. This can be evident in the huge reduction of real estate portals which was once very popular with real estate companies. Thus, it is of utmost importance that office space occupiers have a large degree of flexibility in the way their businesses operate. Serviced offices exist to fill the gaps that are missing in the conventional offices industry, i.e. provide flexibility in the way leases are managed. This study aims to study the profiles and preferences of the clients to gain an insight into the outlook of the serviced offices. It is believed that such information would be extremely useful to the serviced office operators. Based on surveys conducted, the study indicated that majority of the clients are in the IT industry. This can prove to be hazardous to the operators, as they are largely reliant on firms in this sector. However, in view of the current economic slow-down, it might prove to be advantageous to the serviced offices, as firms are reluctant to commit themselves to long-term leases. Thus they might turn to serviced offices as a viable alternative. The study also found that clients perceive cost factors to be of utmost importance when choosing office accommodation. Thus operators should bear this in mind and come up with an attractive package to entice the potential customers. Other key features of serviced offices should be highlighted to emphasize the advantages of serviced offices.