Singapore Office Rental Rates Guide in 2024

An office space is an area within a building designed for conducting business activities, administrative tasks, and professional interactions, such as meetings between clients and partners. It serves as a place where employees can collaborate, innovate, and execute tasks needed for a business's operation and growth. 

There are many office rental options in Singapore, which makes deciding where to rent your office one of the hardest decisions to make because rental prices vary greatly depending on many different factors. This makes finding a new office space in Singapore a lot of work. 

This guide will give you insights into the office rental market in Singapore, such as the location, price, and who they’re suitable for. Without further ado, let’s get started. 

How Much Does it Cost to Rent an Office Space in Singapore?

When selecting an office space, the primary factor to consider is its location, as rental prices vary depending on the area. Typically, offices in the central business district command the highest rents, whereas those outside this hub tend to have lower rental costs.

Another crucial aspect to consider is the type and quality of the office space. Although there isn't an official grading system, buildings are generally categorised as grade A if they are modern and well-maintained, often associated with higher rental rates due to their premium features.

In this article, we will delve deeper into the rental rates across different districts, exploring the lowest, average, and highest rental prices to provide insights for businesses seeking office spaces.

New Downtown & Raffles Place (District 01)

New Downtown comprises the heart of Singapore’s Central Business District, spanning Cecil Street, Raffles Link/Place, and Telok Ayer. It primarily caters to finance, insurance, and legal tenants. The rental rate here is probably one of the highest in Singapore.

Office rental rates in this district vary significantly, largely determined by the grade of the office space. At the higher end of the spectrum, offices located in the Marina Bay Financial Centre (MBFC) towers command rental rates ranging from SGD 13.00 to SGD 15.00 per square foot (/sqft), whereas offices in The Arcade are priced around SGD 6.00 to SGD 7.40/sqft.

Tanjong Pagar (District 02)

The Tanjong Pagar/Shenton Way district maintains its popularity as a workspace hub due to its superb accessibility. It boasts close proximity to several MRT stations, including Raffles Place, Tanjong Pagar, Telok Ayer, and numerous bus routes. This area is primarily occupied by tech, media, and telecommunication tenants, along with flexible workspace operators like WeWork and JustCo.

Office rental rates in prominent buildings such as Guoco Tower and Frasers Tower range from SGD 13.00 to SGD 14.00 per square foot (/sqft), while rates at 100AM are approximately SGD 8.50/sqft.

Alexandra, Harbourfront, One North & Buona Vista (District 03, District 04 and District 05)

Harbourfront, situated on the fringe of Singapore’s CBD, remains a well-established and sought-after hub, while Buona Vista offers a good balance of affordability and accessibility. Prominent office buildings such as Harbourfront Towers offer scenic waterfront and skyline views, with rental rates averaging between SGD 6.50 and SGD 8.50 per square foot (/sqft).

Moreover, business parks in these areas attract tech giants like Grab and Razer, with their new headquarters building at the one-north business park. Office rental rates at Mapletree Business City are priced at around SGD 4.80 to SGD 9.50/sqft. Other notable office spaces in these districts include Keppel Bay Tower, Alexandra Point, and Singapore Science Parks.

City Hall, Clark Quay, & Promenade (District 06)

The historical city centre, City Hall, remains a bustling commercial hub teeming with office buildings. The City Hall and Promenade areas boast high office rental rates, particularly for premium buildings like Centennial and Millennial Towers, thanks to its central location. These locations are favoured by numerous companies, offering tenants great views of Marina Bay, Singapore Sports Hub, Marina Bay Sands, or panoramic cityscapes, depending on their office orientation. Office rental rates in this area are priced between SGD 4.00 and SGD 14.20/sqft.

Bugis & Rochor (District 07)

This area is rapidly emerging as a vibrant hub for both work and leisure, offering many options for office tenants. Alongside its central positioning, offices along Beach Road and Middle Road are prized for their array of amenities and entertainment offerings.

Rental rates in this district vary widely. For instance, the Duo Tower and Centennial Tower command prices range from SGD 12.50 to SGD 14.20/sqft, while the Gateway East & West properties are approximately SGD 8.50/sqft. Generally, you can expect to pay between SGD 4.80 to SGD 15/sqft in this area.

Orchard Road (District 09)

Although renowned as Singapore’s foremost shopping destination, Orchard Road also serves as a prominent commercial hub, benefitting from its nearness to the CBD and diverse array of shops and facilities. This district encompasses other areas like River Valley and Cairnhill.

Rental rates in this district vary. For instance, Ngee Ann City commands rates of approximately $10.50 per square foot (/sqft), while office spaces in Great World City may be lower, around $9.50/sqft. Generally, you can expect to pay between SGD 3.80 to SGD 13.50/sqft in this area.

Novena (District 11)

Situated on the outskirts of the CBD, this district offers a blend of office spaces, residential neighbourhoods, and expansive reservoirs. Locations like Newton and Novena generally present more budget-friendly options because they are north of the city's periphery. You can expect to pay between SGD 4.30 and SGD 8.80/sqft if you want office space in this area.

East - Changi, Tampines & Pasir Ris (District 17 and District 18)

As tenants seek more affordable alternatives away from the expensive city centre, suburban areas are gaining traction. This regional hub has become a magnet for tenants in the banking and finance sectors, with numerous financial institutions opting to establish their IT/backend offices here. In Changi Business Park, office rents typically exceed SGD 4.00/sqft, while in Tampines Plaza 1 & 2, rates hover around SGD 6.00/sqft. Overall, you can expect to pay between SGD 4.50 to SGD 8.50/sqft in this area.

West - Jurong & Tuas (District 22)

Used to be a vast swampland, this area has transformed into Singapore's largest industrial estate. Offices in Jurong Gateway offer diverse facilities, with rentals at Westgate reaching up to SGD 7.75 to SGD 8.20/sqft. Conversely, more remote industrial buildings like those in International Business Park Jurong are more budget-friendly, averaging around SGD 4.00+/sqft. Expect to pay between SGD 4.00 and SGD 9.00 in this area.

Reasons to Consider Co-Working Spaces

Affordability: Enjoy relative affordability compared to traditional office spaces, with flexible membership options allowing you to rent only the needed space. You can expect to pay between SGD 350 and SGD 2,500 monthly for a co-working space. The price differences depend on the location of the co-working space and the service required. 

Great Access to Amenities: Benefit from included amenities such as coffee machines, projectors, and whiteboards, all covered in the membership fees, without the need for upfront investment into these amenities.

Flexibility: Enjoy 24/7 access to the premises via a keycard, allowing you to work according to your schedule and preferences, promoting a healthy work-life balance.

Ready Community: Experience a readily built community among members, fostering a supportive community for those who may otherwise work in isolation, enhancing motivation and collaboration.

Networking Opportunities: Seize networking opportunities by connecting with professionals from diverse backgrounds and industries, facilitating collaboration, idea-sharing, and potential business partnerships for personal and professional growth. Additionally, coworking spaces provide a vibrant and dynamic environment conducive to productivity, creativity, and professional development. 

💡Tip: Choose a co-working space where your neighbours (other companies) are similar to yours or are in the same industry, but be careful of direct competitors. 

5 Steps to Finding Your Ideal Office Space

Step 1. Utilise Specialised Websites

Leverage the power of platforms like CommercialGuru and 99.co, which offer comprehensive listings and advanced search features tailored to your preferences.

Step 2. Customise Your Search 

Enter specific requirements such as location, size, budget, and amenities into the search filters to narrow down options that fit your criteria.

Step 3. Explore Vast Options

CommercialGuru and 99.co provide a plethora of listings in your desired area, allowing you to browse through various choices to find the perfect match for your needs.

Step 4. Utilise Detailed Resources

Make use of detailed descriptions, high-resolution images, and virtual tours provided by these platforms to gain a comprehensive understanding of each office space.

Step 5. Visualise with Map View and Set Alerts 

Take advantage of the map view feature to visualise the office's proximity to transportation hubs, amenities, and key landmarks. Additionally, consider setting up alerts to receive notifications about newly available listings matching your criteria, ensuring you stay updated in the fast-paced property market.

With these five steps, you can efficiently navigate the property market and find the ideal office space to suit your business needs.

Commercial Rental Outlook in 2024

According to a recent study by JLL, rent prices in the logistics sector continued to rise in 2023, albeit at a slower pace due to a shortage of space and limited new construction, with expectations of sustained high demand until 2025. Retail rent prices saw a gradual increase in 2023, driven by rising tourist arrivals and consumer spending, while the office sector experienced slow growth in the second half of the year but anticipates a potential acceleration in 2024 due to economic improvements and the completion of new office buildings.

Conclusion

In conclusion, renting an office in Singapore is a significant decision for entrepreneurs, and understanding the current market trends is crucial. The office rental landscape in Singapore is dynamic, with various factors such as location, type of office, and market demand influencing rental prices.

Entrepreneurs must carefully assess their business needs, budget constraints, and long-term goals when selecting an office space. Conducting thorough research using platforms like CommercialGuru and 99.co can help entrepreneurs find the most suitable office space that aligns with their requirements and budget.