Smart Overseas Expansion: Utilizing Shared Office Space, Advantages and Disadvantages

Expanding to foreign markets is an important milestone for many companies.

In such cases, choosing the proper office space is one of the major keys. 

Shared offices are gaining attention as a means of achieving speedy business expansion while keeping costs down.

In this column, we will introduce the characteristics of shared offices, types of plans, their pros and cons, and how to find the ideal one.

What is a shared office? What are its features?

While traditional offices typically require long-term rental periods with one company renting one office, a shared office allows tenants to choose suitable plans and multiple companies or individuals to share one office space.

“Private office” is the most popular plan for companies.

In addition, shared offices are typically equipped with essential facilities such as lounges, meeting rooms, printers, and copy machines, which are available to all tenants.

Private offices (individual rooms) usually come with necessary furnishings such as desks, chairs, and cabinets, allowing tenants to start working immediately after signing a contract without any prior preparation.

Moreover, some shared offices hold community events to encourage interaction among tenants.

This fosters the development of business communities and facilitates information exchange.

As a note, shared offices are also called serviced offices or coworking offices.

Types of Plans

Shared offices generally offer five types of memberships:

・Private Office (individual room)
・Dedicated Desk
・Hot Desk
・Virtual Office
・Drop－in

Agreements terms are flexible and can be adjusted for the length according to your needs based on the growth and circumstance of your business.

While traditional offices typically require leases of two years or more, shared office spaces offer memberships as short as one year.

*Even shorter terms may also be negotiable..

Private Office (Individual Room)

A room for exclusive use by a company or team, equipped with a lock for privacy and security.

Ideal for corporate use.

Dedicated Desk

A fixed desk not within a private room but not shared with other users, recommended for those who frequently need to manage documents and materials.

Hot Desk

An open area where you can use any available seat each time you visit.

Cost-effective and suitable for those who don’t need a fixed workspace.

Virtual Office

No physical space; instead, you rent the right to use business registration information and mail reception services.

Beneficial for the initial stages of establishing overseas companies.

Drop ― in

Temporary use for short-term needs like sudden meetings or business trip, with fees typically charged hourly or daily.

Pros: Why Shared Offices are Popular for Overseas Expansion

For companies considering expanding overseas, shared offices offer tremendous advantages.

Here are five key benefits:

Reduced Costs

Shared offices require much lower initial expenses than typical office rentals, usually just 2-3 months’ fees to start, allowing you to allocate resources more effectively towards crucial business operations.

Good Location

Shared offices are generally located in high-grade buildings in city centers, creating a professional impression for your customers and business partners and making it easier to develop new overseas operations.

Immediate Business Start

With internet access, conference rooms, and desks ready, you can start work immediately with minimal preparation, leading to significant time and cost savings, especially when starting a new business overseas.

Comprehensive Support

Support services such as visitor reception, telephone support, and mail management allow companies to focus on their operations even with limited manpower.

This is particularly beneficial for small teams and startup companies.

Interaction Among Companies

Shared offices bring together companies and individuals from various industries, providing valuable opportunities for networking and business development.

Cons: Points to Note

While there are numerous advantages to using shared office space, there are also some drawbacks and risks to consider:

Privacy outside of private space

Dedicated desks or hot desks do not offer separate private spaces and may not guarantee complete privacy.

For handling confidential information, it’s recommended to opt for a private office or use exclusive spaces such as phone booths.

Limitations due to shared resources

Overlaps with other users can occur when using shared facilities such as printers and meeting rooms.

Planning and reserving the necessary equipment in advance is important to ensure smooth operations.

How to Choose a Shared Office

Choosing the right office space for your company is the first step to success.

Here are some essential points to consider when selecting a shared office space for your overseas expansion:

Location

An office in a central location with good accessibility is crucial for business development. Consider proximity to public transportation and surrounding infrastructure such as restaurants, banks, and commercial facilities.

Facilities and Services

Ensure that all necessary office facilities are well-equipped.

Additional services like reception, cleaning, and security systems are also key selection criteria.

Flexible plan Options

The unpredictable nature of foreign markets may require scaling up or down quickly.

Choose a shared office that offers flexible agreement terms and options to upgrade or downgrade space as needed.

Community Building

Shared offices provide opportunities for networking and collaboration.

Consider whether the community environment will contribute to your business growth through valuable business opportunities and information exchange.

Feel free to keep in touch!

Thank you for reading to the end!

Since our establishment in 2002, Office Navi has been engaged in office brokerage in Japan.

In 2024, we expanded overseas for the first time with an office in Singapore.

We can introduce you to a wide range of shared offices in Singapore through our online brokerage service, so please feel free to contact us for inquiries.

Company Information

– Company Name: OFFICE NAVI SINGAPORE PTE. LTD.
– Contact: info@office-navi.com.sg
– Address: Level 39 Marina Bay Financial Centre Tower 2 10 Marina Boulevard Singapore 018983