OSCA, Investment
An office fit-out is no simple task. For one, it involves a lot of parties from the contractors, to the architects or designers, and to the ones overseeing the whole fit-out project. Office fit-outs can also be costly, so you need to do your research thoroughly before diving into a full office renovation.
Office fit-outs
An office fit-out is a project that involves planning the space, and installing the rooms and furnishings. Each office fit-out is different as they can vary in size, nature, and shape so it requires a site visit to understand the scope of the requirements before a formal quotation is made.
With the current hybrid arrangements nowadays, it is essential that businesses have their employees in mind when finalizing an office fit-out. This helps ensure that employees can adjust and adapt easily to the workspace. According to Forbes, an overwhelming majority or about 87% of workers prefer healthier workspaces with benefits that include wellness rooms, spaces that allow them to sit and stand, among others.
What influences the costs of office fit-outs?
Each office fit-out can be different as each property comes in different states and sizes. Office flooring is one factor as some office spaces already come with flooring or carpeting while other spaces are turned over as a shell or bare unit.
Furniture is another high cost. If the business had a prior office space, then some of the old furnishings could be reused again. However, if the business is just starting out then most furnishings would have to be bought. Depending on the desired plan and layout of the office, office partitioning is another factor to consider. Different teams would have to be partitioned, or individuals would have to be given their own cubicles depending on the desired office layout and workplace culture.
To add to that, interior design is another factor. While anyone can purchase furnishings, some may opt to get an expert to design an office that can best suit the culture and vision of the company.
The costs of office fit-out
The average fit-out cost in the Asia Pacific increased by 4.7% in 2020. Currently, the fit-out cost per sqm of furniture in the Philippine market is $375 which is higher than South Korea’s $364 and Taiwan’s $360. These high prices could be attributed to the fact that the Philippines relies a lot on imported materials which could add up to the cost.
There is also the matter of reinstatement costs. In the Philippines, it typically costs around $118 per square meter to rebuild a space until it achieves its leased condition.
Construction is the main contributor to the high costs of office fit-outs, followed by furnishings, then IT-related equipment. Digitalization has increased the adoption and need for IT infrastructure as a definite must-have in any office for anyone to be able to do efficient work.
How to avoid these high costs
Naturally, the farther the state of the chosen space is from the envisioned office, the more work would be needed to accomplish it, hence the exorbitant costs. But is there a way to manage these costs more effectively?
One way is to start from the very beginning. Planning is key to any office fit-out. Before any office searching must be done, there must already be a clear idea of the work concept. This way, you can already limit your choices to those that already tick the boxes for your requirements. Another way to mitigate costs is to seek professional advice early on.
Find the right project management company for your office fit-out
A project management company can help your business in creating an effective office fit-out program to meet your business goals. Having a dedicated project management team early on prior to the start of fit-out works will help ensure that your fit-out budget is managed properly and that all your timelines are met on schedule. Santos Knight Frank is a renowned real estate services agency that has a great track record of serving clients with services such as occupier services & commercial agency, investment & capital markets, residential & sales leasing, property marketing, research & consultancy, valuation & appraisal, project management, asset management, property management, facilities management, technical services & engineering solutions. Just visit our website and speak to our real estate practitioners at https://santosknightfrank.com/.
If you want to know more about project management, you can also read about the Importance of Project Management.
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