Cost-Effective Leasing in Singapore’s CBD
In my 15 years in Singapore’s commercial real estate market, I’ve seen that leasing in the CBD is as much an art as it is a science. It’s not just about the psf—it’s about total cost of occupancy and how it fits with your business’s growth. I still remember my early days when I focused on the sticker price only to later realize that hidden charges and rising maintenance fees can slowly suck up your profits.
I recall a tech startup that wanted an older building with low base rent. At first glance, the deal looked perfect. But after we dug deeper, we found that the ageing building would come with higher utility bills and more repairs. After several rounds of negotiations, I helped them find a newer building with slightly higher rent. In the end, this saved them money in the long run by avoiding unexpected costs. I learnt that understanding the “invisible” expenses is just as important as the lease price.
When it comes to negotiating lease terms, I learnt that flexibility is key. I remember a law firm that needed to move fast in the CBD. They wanted a long term agreement in a prime building, thinking that was the way to get stability. But once I reviewed their rapid growth, I recommended a lease that could change as their needs did. We structured the deal so it started with a free rental period and allowed for adjustments later on. This flexible setup saved them short term costs and made it easier for them to adjust their space as their situation changed.
Over the years, I’ve seen that every building in the CBD has its quirks. You need to look beyond the brochures and examine local regulations, neighbourhood trends and even the typical tenant of a building. For example, I worked with a retail brand that wanted high foot traffic in a busy district. On paper, the numbers looked good but a closer look revealed that most of the foot traffic was not their target market. By moving to a quieter more suitable location, their conversion rates improved and sales skyrocketed.Now I don’t get blinded by the address. I look at the full spectrum of costs and opportunities and make sure every lease reduces overhead and supports long term growth and flexibility. My advice for anyone leasing in the CBD is to be curious, trust your instincts and dig deeper than the numbers.
