Flexible Workspaces: Workspace options should not be assessed in isolation

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As Singapore’s flexible workspace market becomes more competitive, some occupiers may assume approaching an operator directly offers a better deal that sidesteps commissions payable. But in practice, that’s not how the market works. 

Whether an enquiry comes directly from an occupier or through an adviser, commission is typically already factored into the operator's pricing structure. The decision, therefore, is not about avoiding a fee, but whether to manage the search internally or have an adviser manage it for you. 

In the search for a flexible workspace in Singapore, most occupiers tend to contact three or four of the largest providers to request for proposals. While this may appear efficient, it only represents a small portion of the market; some of the most suitable options may be operated by providers with a smaller profile but stronger alignment to a specific brief, location requirement or budget. 

As such, the process becomes increasingly time-intensive. Operators are contacted individually. Viewings are arranged separately, often across multiple days. Proposals arrive at different times, and in different formats. Follow-up questions arise and terms need to be clarified, before comparisons can be made. 

It is also likely that the responsibility to oversee this may fall on the shoulders of  someone whose primary role has little to do with property search and negotiation. For many businesses, management time becomes the largest hidden cost of the entire exercise. 

The benefits of consulting a third party advisor   

Today’s flexible workspace market offers more choices than ever before. While this is an advantage for occupiers, it also means navigating a growing number of variables beyond rental rates. And this is what an adviser can assess objectively. 

• Representation aligned with your interests 

An operator's sales team is focused on leasing space within its own portfolio of available spaces, and filling available offices to maximize occupancy. In contrast, an occupier adviser represents the tenant's interests to evaluate and provide an objective assessment of the wider market; he or she can do so by comparing locations, operators, commercial terms and occupier requirements to identify the most suitable solution.   

• Fit versus brand familiarity 

Most occupiers only engage with providers they recognize, whereas advisers work across the full market, including operators that may not have the largest marketing presence but may offer stronger commercial terms, better availability or more suitable environments. 

• Knowledge of current market sentiment 

Across different operators and locations, negotiation can involve rental rates, rent-free periods, deposits, notice requirements, expansion rights and renewal provisions. In contrast, advisers who negotiate these terms regularly have a clearer understanding of what is currently achievable in the market, and where operators are prepared to be flexible. 

• Comparing proposals to reveal the strongest value 

One of the most overlooked challenges is comparing proposals on a like-for-like basis. Costs such as meeting room allowances, printing credits and after-hours air-conditioning may not always reflected in the headline rate. This is where an adviser can add value evaluating proposals to determine the true cost over the full term, rather than relying on headline pricing alone. 

• Protecting future renewal negotiations 

The greatest exposure for many occupiers comes at the renewal stage. When a business is established in a location, relocation can be disruptive and costly. On top of this, the practical alternative to accepting an increase becomes limited. In contrast, advisers address renewal provisions at the outset to lock in the numbers from the start. 

<subhead> Flexible workspace should not be assessed in isolation 

Flexible workspaces are only one segment of the occupier market. 

Managed offices, conventional leases and hybrid solutions increasingly overlap, particularly as occupiers balance flexibility, cost control and growth plans. Rather than trying to determine which flexible workspace provider offers the best deal, they should consider if such workspaces are the right solution in the first place. 

This is where independent advice delivers the greatest value. By assessing all viable options across the market, occupiers can make a property decision that aligns with their business objectives today while retaining flexibility for tomorrow.