Office :> Flashcards
Types of offices
- Grade A
- Grade B
- Grade C
- Co-sharing space
Grade A offices
- 43% of CBD Core office stock is Grade A
- Iconic/Landmark Building with modern flexible layout
- High tech specifications
- Excellent accessibilities
- Good quality building services
- Underground parking
- ample & good passenger lifts
Grade B offices
- About half of CBD Core office stock is Grade B
- buildings in CBD Fringe & islandwide
- good quality but older buildings
- do not have Grade A features & specifications
- some specifications/features are not as modern
Grade C offices
- Less desirable location
- Outdated design & specifications
(usually old but not updated) - Smaller lifts and lower ceiling height lobbies, if any
- Little or insufficient parking lots
- Lower standard of building services and finishes
- Smaller floor plates
Co-sharing Space
- Shared space
- Users don’t own a single office on their own, or need a permanent space
- Focus on freelancers, startups & firms that need quick setup and small office space requirement
Benefits of Co-Sharing space
- Cost-effective, no renovations, deposit
- Presentable office environment &
administrative support to conduct business - Flexible and scalable space
- Amenities and facilities
- Can take advantage of network of offices
- Some have eco-system of users –
synergy
can an office be in a shophouse?
yea :3
Players in the commercial/office property market
- Buyers & Sellers
- Tenants
Players (Sellers & Buyers) and their purposes
Developers, investors etc = generate regular income stream through rental revenue
Companies & Business = Owner-occupy to conduct business
Tenants in office buildings
most ppl rent :)
Main advantages of renting
- Lower capital expenditure
- Ability to remain foot-loose
Common reasons why companies and businesses source for commercial properties
- New set-up
- Expansion
- Downsizing
- Relocation
- Merger and acquisitions
General Factors affecting pricing of commercial properties
- Location
- Accessibility
- Condition
- Size and shape and frontage
- Height and View
- Facilities
- Tenure
- Market trend
- Others
Special considerations in marketing of office
- Car parking facilities
- Lifts system
- Air-conditioning system
Car Parking Facilities
- prospective buyers or tenants usually drive to work
- lack of parking can deter them from buying/leasing
- landed offices (like shophouses) do not have built-in car parking facilities
- so salesperson must check on availability of roadside parking
Lift System in For medium- and high-rise office developments
- only viable vertical transportation is via lifts.
- essential that the lifts system is efficient in terms of numbers & speed
- waste of time for salesperson to show client a high-rise office property with inefficient lift system if client needs good image for their customers
Air-Conditioning System
i) Central System
ii) Individual Split-Unit System
Central System
- fixed operating hours
- some developers the owner/MCST may allow operation beyond usual hours subject to payment of a fee
Individual Split-Unit System
- allows owner to have air-conditioning any time they require
Disadvantage of Individual Split-Unit System
- is required to pay for the electricity bill & maintenance of the
system - Individual owners can install a split-unit system to supplement the
central system in some developments
Special Considerations in marketing of commercial schools
- most important consideration is security
- most commercial schools also organise night classes
Special considerations in marketing childcare centres & kindergartens
- security angle is the proximity of premise to the road
- the concern is whether a child will run out of premises onto the road & meet an accident
Tenancy Terms & Conditions
- Duration : 2 years. more flexible arrangements for co-working space
- rental payment: monthly in advance
- security deposit: generally 1 month for every 12 month of rental period
- interest on rental arrears
- Permitted uses and users
- landlord’s right to terminate
Landlord’s right to terminate
(a) Premises is destroyed or damaged: Adjustment of deposit and rent
(b) Tenant is in breach e.g. rental arrears: Immediate
(c) En bloc redevelopment: Usually needs 3 months’ advance notice
paid by and/or responsibility of the Tenant
- Stamp Duty for the TA
- Utility Charges
- Maintenance of Landlord’s fixtures & fittings
- Replacement/repair of any interior items damaged, lost or broken by the Tenant and/or his occupiers, invitees
- Minor repairs and replacement of expendable items: Usually up to a certain amount
Prohibitions and restrictions on the Tenant in office
- No alterations and/or additions
- Cannot be used as a private residence (cannot become a nuisance or annoyance or interfere with the quiet enjoyment of adjoining occupiers, no illegal or immoral purposes)
- No unauthorised Tenant or occupants i.e. with respect to Immigration Act and the Employment of Foreign Workers Act. To allow Landlord upon request to carry out physical inspection of documents.
- No subletting
- No unauthorised storage of materials of a dangerous or explosive nature
- Not to do anything that affects the fire insurance policies
Landlord’s Covenants
- To pay all taxes, maintenance charges
- To insure the premises against loss and damage by fire
- To be responsible for repair and replacement of parts of airconditioning units
- To keep the roof, ceiling, main structure, walls, floors, wiring and pipes in good tenantable repair and condition (fair wear & tear accepted)
Types of Lease Agreements
- Base Rent
- Double Net
- Triple Net
- Gross Rent
- Utilities
Base rent
the least you have to pay, other fees are added to this
Double Net
- base rent + taxes + insurance
- not so common in sg
Triple Net
- base rent + taxes + insurance + maintenance
- more common in industrial
Gross rent
- one lump sum which is all inclusive of expenses
- most common in sg
Utilities
- always paid by tenant separately
