Office space is one of the single largest cost in running a business, how can tenants can gain a real advantage?

The most common barriers businesses face is in the inefficient process of finding the ideal office solution to match their exact needs. Once the ideal solution is found, the question then becomes how to secure the best market deal or how to ensure the correct negotiation strategy is implemented? Mistakes along the way can make or break a deal and lead to both time and money being wasted.

The simple answer is to utilise data and technology to ensure full market coverage for sourcing the ideal solution, whilst also having institutional grade expertise locally to manage and negotiate your office set up from start to move-in.

Learn more about SAVVI's serviced office services here.

Price is often worked out on a per workstation (or per person), per month basis. The price you will pay can vary greatly but the average price typically ranges between HK5,000 - 8,000 per person per month for Grade A offices.

• Traditional offices are in the medium to long term (2-5+ years) more cost effective per head than serviced office or co-working solutions.

• Initial capital expenditure is much higher with a traditional lease, but is amortised over the lease term.

• The flexibility serviced office or co-working spaces offer can often be priceless and can provide cost effective solutions for individuals/ small companies or businesses that are undergoing rapid growth with volatile or uncertain headcount projections.

• When negotiated well, serviced offices or co-working spaces can also provide an effective medium term solution through customised or managed office solutions.

In addition to 24/7 access to your office, serviced office tenants also enjoy access to:

• Professional receptionist and IT Technicians

• Institutional grade internet connectivity and telecommunication infrastructures such as video conferencing facilities

• Shared facilities such as printing, lounge and meeting rooms

Pricing for serviced offices is often worked out on a per workstation (or per person), per month basis. The price you will pay varies greatly and depending on a number of factors. See some of the key price differentials & factors below.

Supply and demand

• Demand in the area, reputation, location or iconic property.

• Availability in the area or centre.

• Size of requirement availability for a one-person office to and one hundred headcount will limit the choice of centres.

• Amenities if you have specific requirements for amenities, there may be limited availability of offices that can meet all your needs.

• Incentives when a centre has just launched with high vacancy.

Timing

• National holidays and festivals can often impact demand and rents, particularly during quiet periods during Christmas or Chinese New Year.

• Contract length can increase the level of security for the operator or landlord, providing further room to negotiate.

• How soon you can sign may provide further incentives by the provider.

• Market turnover for the flexible office market moves much more quickly than traditional leases. Be prepared to cover the market to ensure you have a viable shortlist to move forward on.

Location and amenities

• Position within the property will ultimately reflect on the price including view, aspect, or floor level.

• Interior design for providers vary for their clientele or target industry. Premium office suites and furnishings will command a higher rent.

• Proximity to public transport

Space utilisation

• High density options fitting more desks into the workspace will reduce the cost per person – though the price of the room will remain the same.

• Office modifications fundamental changes to the layout of your space, like installing new partition walls, will raise the overall cost you pay, as your landlord will need to make the changes for you.

• Meeting rooms some agreements include an allocation of meeting room time per month; however, this cost will be affected by the level of demand for the available meeting room(s).

• Telecoms and IT the price will vary dependent on the selected package; some clients have very basic telecoms and IT requirements whereas others require more complex, dedicated telecoms and IT support.

SAVVI's global Tenant's Network is free to access. We are encouraging a share culture amongst the tenant’s community to not only benefit from cost savings, but an opportunity to save the environment through a more sustainable workspace approach.