VIABILITY OF SERVICED OFFICE AS AN ALTERNATIVE OFFICE SPACE

Abstract

The concept of serviced offices, despite being in Singapore for over 20 years, has not taken off as an alternative office space for business operators here. This is attributed to factors such as the lack of awareness and the difference in market conditions between Singapore and countries in the West. This research examines the viability of serviced office as an alternative option for traditional office space. Trends and issues relating to serviced office will be analysed, including their advantages and disadvantages, use of serviced office by different types of occupiers and how service office fits into the corporate real estate portfolio of an organization. A survey was done to investigate the profile of firms that are more inclined to locate in a serviced office. The findings show a contrast in the profile of serviced space occupiers and non-serviced space occupiers. The results also support the first hypothesis that serviced office is a viable alternative to traditional office space for different users with different requirements and the second hypothesis that users of serviced offices and non-serviced offices have a different set of criteria when selecting office space. Methods to enhance the services provided and ways to advance the industry as a whole will be highlighted. The recommendations suggested include linking up with public agencies to reach out to the identified target markets, improvement in aspects of services and facilities to better cater to the tenants and lastly, setting up a local serviced office association to help the industry step up to a higher level of operations.