Singapore has earned the reputation of one of the easiest countries to start and run a business. As easy as it is to incorporate a company in Singapore and run a business, there are always costs to establish a business.
Startups often struggle with the capital in their initial stages. Therefore, finding ways to reduce the expenses can secure capital for usages like marketing and expansion. There are multiple ways to reduce monthly operating expenses. However, there is one method that is quite popular these days, and that is regarding office rental. Singapore being a costly place the rental cost is often high. Many startup businesses can not afford a full fledged business unit. Co-working spaces comes to rescue here.
Coworking spaces have been getting quite popular lately. They provide flexibility to startups. You can get a budget-friendly and quality working space for your team without the need for a long-term commitment.
A coworking office space, as its name suggests, is a shared workspace. Different people or companies who are working independently on various projects use it. Generally, these coworking office spaces are used by:
Coworking has become a massive part of the real estate market now. As per the Statista website report, there were nearly 19,000 coworking spaces around the world in 2019. This number is expected to reach around 26,000 by 2025.
There are numerous benefits of a coworking space. However, it does not mean that you will not face any challenges with it. A coworking space provides flexibility by providing a more cost-efficient alternative to the long-term leased office space. You do not need to make multi-year commitments. However, you also compromise your privacy when you choose a coworking space.
Therefore, it is essential to understand all advantages and disadvantages of a coworking space before deciding to go with one.
The primary advantage that a coworking office space provides is the flexibility to rent and leave a workspace with very short notice periods. It is mostly preferred by remote workers, tech startups, entrepreneurs, and freelancers as they mostly need quick renting solutions without the need to get into multi-year agreements.
Following are some of the most significant benefits a coworking space can provide:
A coworking space creates a positive working environment. When you work side-by-side with other freelancers, entrepreneurs, and startups, it develops a feeling of competitiveness among you. This feeling gives a boost to your productivity and creativity.
It brings together freelancers, distance workers, and entrepreneurs, giving them an opportunity to network. Coworking managers organize advising sessions, events, and consultations. It could be a great chance to form business relationships organically.
Flexibility is the most significant benefit of a coworking space. If you start with a small workforce but plan to grow soon, a coworking space is ideal. There is no long-term commitment. You can rent and leave whenever you want. In Singapore you can rent some co-working spaces for specific number of hours per month.
As a coworking space is budget-friendly, you can use it in your business’s initial stage. Thus, it reduces monthly expenses and saves capital that can be later used for business growth and marketing.
You may face the following challenges in a coworking space:
In a coworking space, you work beside many people you may or may not know properly. Your telephone calls and discussions may be heard by others around you.
A coworking space may get too crowded at specific hours or days. Networking events and sessions may also create a distraction. It affects your productivity, and tasks that require high concentration may not be done with full efficiency.
In addition to these, coworking spaces are not much cost-efficient in the long-term. It is better to rent a corporate office directly if you plan to stay at one location for several years.
Singapore, Ireland, and Luxembourg are three countries with the highest per capita coworking space density. In fact, in the Asia-Pacific region, Singapore is one of the most active markets for coworking spaces.
Singapore has established itself as a startup hub. The low corporate tax rates and tax exemption schemes encourage enterprise formation here. As of now, the city-state is home to more than 120 flexible workspace centers.
Coworking space-providing firms in Singapore are continually competing to stand out of the competition. The coworking trend has influenced even large firms, and the change can be noticed in their office designs.
For instance, Prudential Assurance Company of Singapore has designed open tech-enabled office space, Prudential WorkPLAYce. It is an open amphitheater with relaxation zones and collaboration areas for its employees.
The coworking industry is booming across the world. However, concerns are growing regarding the sustainability of coworking demand. One such example is WeWork, which was one of the largest coworking space providers in the world.
The company was valued at $47 billion at its peak in January 2019. However, the company failed to keep up with the aggressive growth in the coworking sector. As a result, it received criticism for its poor management, business model, and inability to generate profits.
Later, the company’s total valuation reported being dropped to $10 billion in the same year.
There are many coworking space providers in Singapore. Before choosing a coworking space for your business, you must consider some essential factors, such as:
These factors must be considered before renting as they could affect your productivity and workflow. Opening hours are crucial when you do not have a fixed working schedule.
You must also note that coworking spaces charge monthly rent. For a hot desk, the charges are anywhere from $220-$500 per month. However, for a fixed desk, the price starts from $300 monthly.
Here are some of the coworking space providers that you can use in Singapore. Do note that we do not promote any of these coworking spaces. You must check their pricing and features and pick the one that you find best for your needs.
This is one of the most cost-efficient workspaces in Singapore. It offers many budget-friendly plans, including flexible add-ons. You can rent a hot desk at S$220 per month, including high-speed internet, a business address, a dedicated locker, and refreshments. Workers or makers can rent a pod that is ideal for a team of up to six individuals. Meeting room usage of three to six hours per month is available for free when you rent a pod.
Distrii is located at the heart of Singapore’s CBD (Central Business District) at Raffles Place, Republic Plaza. It is Singapore’s largest tech-driven coworking facility covering six levels of workstations. The coworking space of Distrii consists of 900 workstations, customizable team spaces, and private offices that occupy a total area of 62,000 sq ft. The unique feature of Distrii is its mobile application. It allows the members to book a desk, walk into a center, and unlock lockers and meeting rooms conveniently by scanning a QR code. Distrii also offers an in-house café, a multi-purpose event hall for a maximum of 200 people, and spaces with massage mats and exercise bikes. Distrii can easily accommodate SMEs and bigger startups. For a hotdesk, the monthly rental starts from S$550.
The Working Capitol provides a work spot with access to unlimited WiFi, pantry, and other amenities starting at S$255 per month. You also get access to member events that will be beneficial for networking. The Working Capitol also has a magazine library, a rooftop bar, and an in-house café.
Level3 is located in Mapletree Business City. It offers more than being just a workspace. If you register yourself as a community member, you get access to Unilever Foundry’s business strategy advisory, mentorship program, and capacity-building workshops that help you grow your business. Level3 has established itself as a hub for innovation and experimentation. A hot desk in Level3 costs S$400 per month with an additional 10% discount for startups.
Located in Katong Point, Mox is a three-story facility. Two hundred people can be accommodated in its working areas, workshop rooms, and retail space. Mox is a distinct coworking facility with advanced facilities, like laser cutters, 3D printers, and an art gallery. You can also find workstations that are equipped with design software. Another distinct feature is a napping room available to the members. You can rent a hotdesk at Mox for S$300.
Trehaus is an amalgamation of a coworking space and a childcare center. It is perfect for working parents. There is a crèche facility for kids and a dedicated adult zone. In the adult zone, you can enjoy adult-only working spaces, meeting rooms, and event spaces. At Trehaus, you can work while being in proximity to your child. Unlimited hotdesking at Trehaus costs S$580 per month.
Found8 is an ideal coworking spot for innovators who are looking for networking opportunities. The facility offers membership to investors, corporates, and entrepreneurs. You also get access to startup advisor programs and other similar events. If lucky, you may be able to acquire some funds for your early-stage startup. Hot Desk Unlimited access at Found8 costs S$495 per month.
NuSpace (by Nulab) is located in the Changi Business Park. It may come as a shock, but NuSpace is the only free coworking space on the list. Yes, it is entirely free to use. However, that is not all. Other than the free coworking space, you also get access to free unlimited WiFi, a foosball table, and a full-stocked pantry with complimentary water, coffee, tea, and snacks. NuSpace regularly organizes free workshops, tech talks, and events that provide you numerous networking opportunities. However, you must sign up to become a Nulab member to access NuSpace for free for one year. Though, the membership is also free for the first year. So all you have to do is sign up to gain free access to the NuSpace coworking facility.
The Company Singapore is ideal for entrepreneurs and startups. You get access to networking sessions, panel discussions, and events. The Company Singapore offers hot desks, compact booths, private offices, and meeting rooms along with an in-house café. To gain unlimited access to a hot desk, you have to pay S$398 per month.
Gather is located in River Valley. They have three levels of large coworking spaces with an in-house pantry on each floor. They also have a pet-friendly policy. Gather Cowork has a flexible payment policy where you can pay per person instead of paying per square foot. Such a payment policy is beneficial for small companies that are focusing on expansion.
The Work Project boasts six locations in Singapore, including Capital Tower, Asia Square Tower 2, and Great World City. The most prominent feature of their coworking spaces is their designing standards. They have designed their spaces to the standards of a five-star hotel. You can find a hot desk at S$295 per month and a private office up to S$845 per month.
The Hive offers a hot desk at S$250 per month and a dedicated desk at S$580. It also provides virtual office space at special rates. It is located on Carpenter Street.
The coworking facilities mentioned-above are some of the most renowned in Singapore. However, many new players have been continuously emerging in this sector. Below are some other coworking space providers in Singapore that you can try.
The factors that drive the demand for coworking spaces are:
Singapore offers numerous options for coworking spaces. It is not much difficult to find a coworking space that best suits your requirements. However, coworking has its pros and cons. Therefore, you must learn everything about a facility before you make a decision. The best option is to visit the place and check it yourself. Many coworking space providers offer free trials. You can use this free trial to test a place regarding your working needs.
It is also possible that you may not need an office but just an office address in many cases. ACRA requires a registered office address for Singapore company incorporation. In that case, Epica provides cost-effective registered address services to comply with ACRA’s requirements. You can contact us to learn more.
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