Cost Of Serviced Office Rent vs Conventional Office Rent
In Jakarta and many other metropolitan cities in the world, serviced office rent has become increasingly popular thanks to the growth of startup companies and small to medium enterprises. More recently, in the wake of coronavirus pandemic that force most people to work from home, many business owners have moved away from conventional office rent to serviced office rent. This is because serviced office rent is relatively inexpensive, and is much more flexible in terms of office size and period of rent, making it easier to scale down in times of financial uncertainty and to scale up when economy recovers. The tables below show fundamental differences and comparison between a serviced office rent and a conventional office rent in Jakarta CBD areas.
| FUNDAMENTAL DIFFERENCES | |
|---|---|
| SERVICED OFFICE RENT | CONVENTIONAL OFFICE RENT |
| No setup cost (fully furnished and fully equipped) | Setup cost required for Fitting out and Equipment |
| Flexible lease term, usually 6-12 months | Usually 3-5 years |
| Flexible office size (according to number of people) | Minimum 100m² |
| Ready to use, immediate occupancy | Needs 2-3 months to fit out |
| Security deposit: 2 months office rent | Security deposit: 3 months office rent |
| Telephone is installed and provided | Telephone installation and deposit are required |
| High speed internet readily available | Must install own internet |
| Front office and maintenance staff provided | Must hire front office and maintenance staff |
| Office overhead is low: mostly office rent | Overhead is higher: office rent, service charge, salaries of supporting staff, internet, electricity, utilities |
| COST OF OFFICE RENT COMPARISON | |
|---|---|
| SERVICED OFFICE RENT | CONVENTIONAL OFFICE RENT (min.100m²) |
| Setup cost: 0 (fully furnished, fully equipped) | Setup cost: approx. IDR100,000,000, including: Fit out 100m² @ IDR5,000,000/m² = IDR50,000,000 Equipment: approximately IDR50,000,000(TV, phone system, CCTV, pantry equipment etc) |
| Service charge: 0 | Service charge: IDR40,000/m²/month = IDR4,000,000/month |
| Security deposit: 2 months office rent | Security deposit: 3 months office rent |
| Electricity cost: 0 | Electricity cost for 100m²: approximately IDR2,500,000/month |
| High speed internet installation and usage cost: 0 | Internet installation and connection for 20Mbps local/10Mbps international IDR5,000,000/month |
| Customer service salary: 0 | Customer service salary: IDR5,000,000/month |
| Office assistant salary: 0 | Office assistant salary: IDR4,000,000/month |
| Security guard salary: 0 | Security guard salary: IDR4,000,000/month |
| Monthly office rent: IDR3,000,000 – IDR3,500,000 per pax | Monthly office rent: 100m² @ IDR200,000/m² = IDR20,000,000 |
| Total Monthly Office Overhead: IDR18,000,000 – IDR21,000,000 office rent for 6 pax | Total Monthly Office Overhead: IDR44,500,000/month including office rent |
The above tables show clearly the difference between a serviced office rent for 6 people at Amethyst Executive Suites (“Amethyst”) and a 100sqm conventional office rent in a typical office building in Jakarta CBD areas.
Setup Costs: No setup costs required for serviced office rent at Amethyst as it is fully furnished and fully equipped whereas a 100 sqm conventional office rent in Jakarta CBD areas will require approximately IDR100,000,000 for fitting out, purchase of various office equipment and installation. This has not included security deposit and other installation costs for telephone and internet.
Down Time: There is no down time for serviced office rent at Amethyst as it is a ready-to-use “instant” office, whereas a conventional office rent will require around 2-3 months to fit out.
Office Overhead: Monthly serviced office rent at Amethyst ranges between IDR3,000,000 – IDR3,500,000 per person or IDR18,000,000 – IDR21,000,000 for 6 pax serviced office (or even cheaper during promotional period). In the case of conventional office rent, the total monthly overhead, including office rent, will be approximately IDR 44,500,000 per month.
Demolishment Cost: At the end of the contract of a conventional office rent there is additional demolishment costs that you will incur to return the office to its original form, whereas in the case of serviced office rent, all you need to do is pack your personal belongings.
CONCLUSION
Nowadays, serviced office rent gives you prestige, flexibility, convenience as well as time and cost savings, offering you an affordable one-stop solution for your business. For this reason, serviced office rent has become the primary choice for startup companies, small and medium size enterprises, representative office of local and foreign companies.
Amethyst Executive Suites (“Amethyst”) operates two centers that offers serviced office rent at the most prestigious CBDs in Jakarta, namely Jl. Jend. Sudirman (Central Jakarta CBD) and Jl. TB Simatupang (South Jakarta CBD). Both locations are easily accessible by public transportation and conveniently connected to the toll roads that go directly to Soekarno Hatta International Airport).
Serviced office rent at Amethyst is a practical solution for your office needs, all you need is to bring your gadgets, pluck in and start working. There is no down-time as you can instantly occupy the serviced office of your choice without the hassle of having to fit out, hiring front office and supporting staff, or worrying about big setup costs or high monthly overhead.
Amethyst Executive Suites provides Serviced Office rent, Virtual Office rent as well as Coworking Space at Jl. Sudirman (Central Jakarta CBD) and Jl. Simatupang (South Jakarta CBD). Amethyst’s serviced office clients include startup companies, small and medium enterprises, as well as representative offices of established multinational companies. To find out more about our office rent and promotional offers, please visit www.amethystsuites.com or call or whatsapp +62 896 3694 1711 (Sahid Sudirman Center) or +62 896 3694 1722 (18 Office Park).
