It is no secret that, at present, various currencies are losing their value, and costs are rising everywhere around the globe. In short, inflation is affecting many countries today, and Singapore is no exception. In May 2022, the Consumer Price Index inflation or overall inflation increased to 5.6% y-o-y from the previous 5.4% y-o-y of March 2022. Moreover, the Monetary Authority of Singapore Core Inflation (excluding private transport and accommodation costs) in May 2022 rose to 3.6% y-o-y from the 3.3% y-o-y of April 2022. This increase has been the highest recorded in more than 13 years. The last time MAS Core Inflation spiked higher than that was back in December 2008, when it reached 4.2% y-o-y.
According to the figures provided by the firm JLL Singapore, rent for Grade A Central Business District (CBD) offices increased to S$10.74 per square foot (PSF) month per month in the latest quarter compared to S$10.46 in Q1 2022. To add salt to the public’s financial wounds, the GST hike is still on schedule for 1st January 2023, going up to 8% from 7% and eventually 9% by 1st January 2024.
All in all, the message is pretty clear that everything is becoming increasingly costlier by the day. So, what can businesses do to protect their bottom line and combat rising costs, especially office rent? Naturally, the answer lies in switching to an alternative and more cost-effective work environment, such as a coworking office space for rent.
Coworking spaces as a cost-effective option
Coworking spaces are nothing new and have been around for many years. Their recent uptick in popularity may be attributed to the burnout of many remote workers fed up with the shortcomings that plague the work-from-home arrangement. Compared to traditional office leases, coworking spaces provide greater flexibility and more cost-effectiveness since individuals or companies only pay for the space they need. As such, coworking spaces allow businesses to easily scale their space according to their growth strategy.
Moreover, with already available essential furnishings, equipment, and network infrastructure, companies can save a little more on setting-up cost and can start their operation without delay. Apart from those mentioned, shared spaces are also a cost-effective option due to these reasons:
- Frictionless move-in
As a plug-and-play office solution, coworking spaces allow new members to move in quickly with little to no hassle. This seamless transition is especially helpful for teams with ongoing projects to stay on top of their deliverables. Unlike conventional common offices where relocating often takes a week or more, businesses and independent workers can typically move into coworking spaces just a day after signing the contract.
- Maintenance cost
Upkeep is another area where businesses can realise cost-savings when switching to coworking spaces. No longer will they have to spend time and resources on planning and managing responsibilities like building and facilities maintenance, general cleaning, and the like, as those responsibilities now fall on the coworking space provider. Even so, the coworking members must also shoulder the financial burden just like everything else, and the fee for maintenance will usually be outlined in their contracts.
- Customisable services and packages
Each coworking space provider offers their own range of services and packages that appeals to all kinds of business and workers. To ensure that members get everything they need and want from coworking spaces, providers also offer customisation options that best suit a client’s requirements. From call answering and reception services to access to meeting rooms and other facilities, clients can add or remove benefits to their plan as they go.
- Complimentary perks from operators
Depending on their workforce, some businesses may have to allocate a sizeable budget for complimentary items such as tea, coffee, and snacks. By switching to coworking spaces that already provide these perks, they can save more on this area of spending which adds up over time.
Advantages to coworking spaces
Besides the cost savings, coworking spaces also feature other notable advantages, such as greater networking and collaboration opportunities and productivity-conducive interior design.
- Greater networking and collaboration opportunities
With its selection of non-restrictive and different working and communal areas, many professionals can meet and interact with their peers from various industries and walks of life. This variety of workers allows for unlimited opportunities to interact and network with others that could add value to your work and you to theirs; a mutual exchange, if you will. Besides daily encounters, community events are also a part of what makes coworking spaces unique. Each branch’s community manager will also periodically hold events that range from casual to formal that best suit their community. As expected, networking events are a staple in any coworking space.
- Productivity-conducive interior design
The other benefit, mainly the space’s design elements, is also advantageous for professionals. Studies have revealed that a person’s working environment plays a significant role in their productivity and creativity, two key aspects determining their work performance. As such, businesses planning to remodel their office to increase their employees’ effectiveness might be better off just switching to a coworking office instead. Apart from the renovation costs that may be best spent elsewhere amidst the current inflation, coworking spaces are already built from the ground up with productivity in mind. This guarantees that you can achieve the performance gain you want for your employees with little to no effort.
Rising costs are a problem for the average person and businesses as they may spell trouble in their financial balancing. To get through these trying times, business owners need to rethink their expenditures and cut costs on areas where they spend the most, such as office space.
If you are ready to make the switch but are unsure which coworking space is right for you, GreenHub Singapore is here to help you out. You’ll find our green and modern office spaces up to standard in all aspects and meet and even exceed expectations. Apart from boosting productivity, our biophilic-inspired interior design also helps promote your employees’ physical and mental well-being so they can work at peak performance. Give us a call at any time to arrange a visit and experience our offices first-hand!