Choosing an office is a huge commitment. When the economy is uncertain, that decision can feel even more stressful. You're not just picking a place to work; you're making a choice that affects your team, your budget, and your company's future.

So, how do you make the right call without getting bogged down by complicated contracts and real estate jargon? The secret isn't just about finding the cheapest rent. It's about being agile. That means building a strategy that is smart, flexible, and ready for whatever comes next.

The Big Shift: What Tenants Really Want in 2025

Singapore’s office market is defined by choice – but not always on tenants’ terms. Vacancy is tight, and landlords are less generous with incentives. Even so, tenants are pushing for three clear priorities as they align their workspace with financial and operational goals: better value, lease structures that offer adaptability, and smarter space planning.

1. Getting More Value, Not Just Cheaper Rent

You might think that cutting costs means moving to a less-fancy building, but the opposite is often true. Many companies are making "flight to quality" decisions, downsizing slightly to relocate from older buildings to new, top-tier Grade A developments.

Why? Because these premium spaces often offer better long-term value. They are designed for higher space efficiency, meaning you can fit more people into a smaller, smarter layout. They also have modern infrastructure, which can lower your utility and maintenance costs over time. Plus, a great office with premium amenities is a powerful tool for attracting and keeping great employees in a competitive market. It’s about spending your money smarter, not just less.

2. Leases That Put Flexibility First

In Singapore, office leases have traditionally ranged from 3 to 5 years, with only major anchor tenants committing to much longer terms. Unlike some Western markets, true break clauses are rare here, and long rent-free periods are less common today given tighter vacancy levels. That means flexibility has to be approached differently.

What tenants are focusing on now includes:

• Right-Sizing Commitments: Instead of pushing for very long deals, most occupiers are keeping their leases in the 3-year range, which allows them to reassess regularly without locking in too far ahead. Longer commitments are only considered if they come with meaningful incentives.
• Pre-Fitted or Spec Suites: Move-in-ready offices are highly sought after because they reduce upfront fit-out costs and allow businesses to start operating quickly. For many firms, this is the most practical way to secure flexibility while managing cash flow.
• Negotiated Incentives: While landlords aren’t as generous with rent-free periods as in softer cycles, they are still open to creative structures such as stepped rents (lower in year one, gradually rising after) or limited tenant improvement allowances. These can help smooth costs and provide some breathing room at the start of a lease.

Flexibility isn’t about frequent exit options – it’s about negotiating smarter structures upfront. Tenants are prioritising predictable costs, reduced upfront investment, and the ability to scale within the same building.

3. A Smarter Space for a Smarter Way to Work

Hybrid work has completely changed the purpose of the office. It's no longer just a place to hold desks; it's a destination for collaboration, culture, and innovation. Today's layouts are designed to work smarter, not harder.

Instead of a traditional one-desk-per-person setup, many companies are adopting a "hot-desking" model. This might involve a ratio of 0.7 to 0.8 desks for every employee, allowing the entire team to be accommodated through shared desks and rotating hybrid schedules. This approach not only reduces the amount of underutilized space you're paying for but also frees up room for creative, collaborative zones and meeting spaces.

For a deeper look into this, check out our blog post, The Impact of Office Space Design on Business Productivity.

Clever Strategies You Can Use Right Now

To put these priorities into action, smart tenants are using several proactive strategies.

Rightsizing, Not Just Downsizing 

The most effective office strategies are built on data. Instead of simply cutting square footage, companies are rightsizing. They use data on who comes to the office and when, combined with employee surveys, to figure out exactly how much and what kind of space they truly need. This ensures they aren't paying for empty desks while also making sure they have enough room on their busiest days.

The "Hub-and-Spoke" or HQ-lite Model

This decentralised approach is gaining popularity. Some businesses are maintaining a smaller, impressive headquarters in the Central Business District (CBD) for important client meetings and brand presence. They then supplement this with smaller satellite offices or flexible workspace memberships closer to where their employees live. This strategy helps spread costs across different markets and makes commuting easier for staff, which is a major bonus for talent retention.

Don't Wait: The Power of Early Renewal Negotiations

In Singapore, landlords don’t typically reopen leases midway, and concessions like “blend-and-extend” or generous rent-free periods are rare. However, tenants still have more influence than they realize if they approach the discussion early.

When you’re 12 to 18 months from lease expiry, many landlords will entertain renewal talks. For them, securing a quality tenant ahead of time reduces the risk of vacancy, while for you it creates an opportunity to lock in certainty on rent and space before market conditions shift.

Early discussions can deliver advantages such as:

• Locking in Predictable Costs: Negotiating renewal terms in advance can help hedge against rising rents in a tight market.
• Adjusting Space Requirements: If your workforce strategy has changed, you may be able to resize within the same building — downsizing to save costs or taking additional space to accommodate growth.
• Securing Fit-Out Support: Some landlords are willing to share in the cost of upgrades or reinstatement if a tenant commits early to a new term, especially for longer renewals.
• Negotiating Stepped Rents: While long rent-free incentives are uncommon, tenants can sometimes negotiate graduated rents or capped escalations that ease short-term cash flow pressures.

For occupiers, the key is not to wait until the final months of the lease. By engaging early, you can create leverage, shape terms that align with your business plans, and avoid being boxed in by limited options at the last minute.

FAQs: Your Office Leasing Questions Answered

Q: Should I renew my lease or find a new office? 

A: This is a classic "stay vs. go" decision. The best way to figure it out is to do the math. Calculate the total cost of relocating (fit-out, moving expenses, potential disruption) and compare it to the benefits of a new space (better efficiency, modern amenities, a more favorable lease). At the same time, talk to your current landlord to see what concessions they’ll offer to convince you to stay. A data-led approach will always reveal the most financially sound option.

Q: How much space do I need for a hybrid team? 

A: Start with a workplace strategy study to understand your team's habits. Use benchmarks like the 0.7-0.8 desk-to-employee ratio as a starting point, but refine this based on your company's unique hybrid policy, peak occupancy days, and specific needs for collaboration versus focused work.

Q: Is now a good time to sign a long-term lease? 

A: A longer lease in Singapore can provide stability, but it should be weighed carefully. Since most leases already run 3 to 5 years, the decision is less about going “long” and more about whether to commit early or secure renewal terms now. If you foresee growth or need cost certainty, a longer lease can help lock in predictable rent, but you’ll want to negotiate for elements like stepped rents or escalation caps rather than multiple break clauses, which are uncommon here.

Q: What kind of support can I expect from landlords right now? 

A: While Singapore isn’t generally a tenant-favoured market right now, landlords facing vacancy or incoming supply remain open to negotiation. Instead of large rent-free incentives, support often comes through fitted units, partial fit-out contributions, or stepped rental terms. In renewal talks, some may also assist with reinstatement or minor upgrades if it helps secure an early commitment. The level of flexibility really depends on the landlord’s position, the building, and where you are in the market cycle.

To develop a bespoke real estate strategy that aligns with your business goals, contact the Savills Commercial Leasing team today.