Office For Rent or Lease Singapore

Points to Note in Renting An Office Unit

Caution in the use of Office in an Industrial Space

In ensuring that the limited industrial land is used mainly for industrial uses, the URA requires at least 60% of the total floor area of an industrial development to be used for core industrial activities. Some non-industrial activities, such as ancillary offices¹, staff canteens and showrooms are needed to support the predominant industrial uses have to be catered for. These are considered ancillary and together with other ancillary areas (e.g. lift lobbies and circulation spaces) are allowed to occupy up to 40% of the total floor area of industrial development.

Rental and Service Charge

Rental rates are usually quoted as gross rent in Singapore dollar per square feet per calendar months (S$psf/mth), comprising of Base Rent plus Service Charge.

Typically, tenants are asked to pay rent on a monthly basis and it is subject to Goods and Services Tax (GST).

Service Charge (between S$1.00 to S$1.30 per sq ft per month) may be charged for centralised air-conditioning expenses during office hours, maintenance and security of the common area and other building’s outgoings. This charge may be subjected to adjustments if there are changes in the maintenance cost.

Lease Period

Lease Period is usually for two to three years. For multiple floor tenancies or anchor tenants, longer

Leases can be negotiated.  Any Lease of seven years or longer has to be registered with the Singapore Land Authority.

Option to Renew

Option to Renew is usually for a period of two to three years and is usually at a rent to be agreed or reviewed according to the prevailing market rent, unless a rent cap has been mutually agreed between two parties in the Lease Agreement.  Do note that rental caps are not common practice in Singapore.

Fitting Out Period

Fitting Out Period is the period between the Possession Date and the Lease Commencement Date for a tenant to renovate the new premises.

Depending on the size of the premises and the prevailing market conditions, the period can range between two weeks to three months. Most Landlords will waive the payment of the Service Charge during this period although there may be exceptions

Security Deposit

Security Deposit equivalent to three to six months’ gross rent, is usually payable upon confirmation of the Lease and it is refundable (without interest) at the end of the Lease.

The amount depends on the Tenant’s financial standing/paid-up capital registered under the Accounting and Corporate Regulatory Authority (ACRA).

Letter of Intent (LOI)

Letter of Intent (LOI) is a non-legally binding document and it outlines the main terms and conditions to be negotiated on by both the tenant and Landlord.

The Landlord will respond to the LOI submitted and may counter propose on several terms.

Letter of Offer (LOO)

After the main terms and conditions are agreed upon by both parties, the Landlord will issue the Letter of Offer (LOO) and a copy of the Lease Agreement, detailing all terms and conditions. Both documents are legally binding upon acceptance.

Once the details are agreed between both parties, Tenant will sign the LOO and pay a booking fee equivalent to one-month rental (subjected to prevailing GST).

Lease Agreement

The Landlord’s legal council will then present the Tenant with the Lease Agreement outlining the Terms and Conditions applicable to both parties as stated in the LOO.