Overview of Shanghai Office Space Options
For most small-to-mid-size companies, renting an office in Shanghai is often a challenge and offers different options. This report explores the different rental options available to you in Shanghai. There are three options of Shanghai Offices to choose from (1) serviced offices, (2) conventional offices and (3) loft offices.
Serviced Office
Serviced Offices, also known as Business Centres, Executive Suites or Instant Offices, are ready-to-use fully furnished offices that can be an ideal rental choice for small or new companies looking for minimum startup costs, flexible lease terms and a prime business address. Most Serviced Offices are located in the central business districts of Shanghai. They are managed by specialized companies that are furnished with office furniture, internet connections, printers and faxes for up to 10 people. A Serviced Office offers companies an excellent choice if they are seeking a temporary solution for a year or two with the intent of moving to more permanent premise as their business grows.
Why would a company consider serviced office over conventional office space? Quite simply, it is a combination of cost, flexibility and scalability. In Serviced Offices tenants share common office facilities such as meeting and boardrooms, copy machines and business lounges which save money if you were setting them up one your own. Business operations are available from mail support, reception services, IT infrastructure, internet connectivity and telecom connections to office cleaning, air conditioning, electricity and lighting and other basic utilities. Serviced Offices provide you with a monthly bill, inclusive of all the services. The maintenance of the office, furniture, internet connectivity, printer, phones, etc… are maintained by the Serviced Office allow you time to establish and grow business. The duration of your lease can be from as short as 3 months, and as your business grows, you can take on more space, stay for longer or use more of the available services. In “one word” it offers you flexibility at a reasonable price. Serviced Office Space is the new trend in office space alternatives in the Shanghai area and especially popular with startups or foreign companies, wishing to establish business in Shanghai. Since the Shanghai Government requires a company to register their business for a minimum of a one year when leasing office space, many foreign companies take a one year lease on a serviced office.
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Conventional Office
Renting a conventional office in Shanghai usually means renting empty office space. This approach normally requires a budget to cover the costs of interior design, renovation and furnishings (furniture, IT infrastructure, telephones, internet connectivity, and personnel). Locating the right location and building and negotiating an office lease can be a large challenge. However if your company is on a stable growth-path that indicates growth, the long-term benefits can make it worth the effort and investment especially if your company is well establish globally and seeks to grow its presence in the Shanghai area.
Why would a company consider a conventional office over serviced office space? Typically in Shanghai, when companies have 10 or more employees, serviced offices are less cost effective in terms of space and running expenses especially in the 2nd or 3rd year of a business. When renting a conventional office, the initial start up cost can be more than you expect or have budgeted for. However, once you initial outlay is covered, the ongoing running costs will likely be significantly lower than Serviced Offices. Also, some businesses require a more independent image, a Conventional Office allows a company to establish office space according to their company culture, requirements and branding. You determine how best to utilize and organize the space taking into account your views on meeting rooms, reception area and office space. Conventional Office offers wider choices of locations and buildings and the ability to negotiate favorable lease arrangements.
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Loft Office
Loft offices are defined as a large and open space with higher ceilings and concrete floors restored from the former manufacturing or warehouse buildings that have been converted for commercial use in Shanghai. Since 2004 the government has encouraged creative and cultural industries to develop Loft Offices. Actually there are more than hundreds of loft space offices in Shanghai. Most Shanghai loft buildings are located in downtown areas with some Loft Offices extending into the surrounding areas. Most Shanghai Loft Offices are situated in buildings of 5 to 10 stories in height with the space rarely exceeding 10,000 square meters. Ceiling heights vary between 4 and 6 meters, substantially higher than traditional office space, where drop ceiling height is typically 2.5 to 3 meters. Loft offices are handled the same way as conventional offices. Companies will need to complete the office renovation, build infrastructure and furnish the space on their own.
Usually, companies that rent Loft Space maintain an open environment for their employees and their company image. Creative companies in industries such as publishing, advertising, media, computer animation, film production, fashion design, architecture, graphic design and web design firms are attracted to commercial loft space. Some life style business or educational services also prefer loft space as its showroom or customer experience center. They value full floor design and structure as well as column less spaces which can be found in small boutique buildings. Loft offices are great choice for companies whose work surroundings are an important element to their company’s success and image. Loft Offices are an excellent solution for creative companies who seek to grow their business in China.
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