The asking rent is the landlord's listed price per sq ft per month. The effective rent is the actual cost after factoring in rent-free periods, incentives, and stepped rents. For example, if the asking rent is $10/psf with 2 months free on a 36-month lease, the effective rent is approximately $9.44/psf. Always compare effective rents when evaluating options.
Gross rent includes the base rent plus service charges (maintenance, security, common area upkeep). Most Singapore office leases quote gross rents. Net rent is the base rent only, with service charges billed separately. Always clarify which basis is being quoted — and check whether air-conditioning charges are included or additional.
Lettable area (also called net lettable area or NLA) is the usable space you occupy. Gross floor area (GFA) includes common corridors, lift lobbies, and other shared spaces. Rent is calculated on the lettable area. The ratio between lettable and gross area is called the efficiency ratio — typically 75–85% in Singapore Grade A buildings.
A clause allowing the tenant to terminate the lease early if the company is relocated overseas, ceases operations in Singapore, or the key personnel are transferred. Typically exercisable after 12–24 months of the lease with 2–3 months' written notice. Common for companies with regional HQ setups or expatriate-heavy teams.
A period before the lease officially starts during which the tenant can renovate the space without paying rent. Typically 1–3 months depending on unit size and lease length. Service charges may still apply during this period. Negotiate this as part of your LOI — it's one of the most valuable concessions a landlord can offer.
Requires the tenant to restore the premises to its original condition at the end of the lease. This means removing all partitions, flooring, and fixtures you installed. Reinstatement costs typically range from $15–$40 per sq ft. Some landlords may waive reinstatement if the incoming tenant wants to keep your fit-out — always worth asking.
Usually equivalent to 3 months' gross rent, paid upfront or via a banker's guarantee. The deposit is held by the landlord as security against damage or unpaid rent and is refundable at the end of the lease (less any deductions). A banker's guarantee is often preferred as it doesn't tie up your cash — your bank issues a guarantee letter instead.
A non-binding document outlining the key commercial terms you're proposing — rental rate, lease duration, rent-free period, commencement date, and special conditions. It's the starting point for negotiation. Once both parties agree on the LOI terms, the landlord instructs their lawyers to draft the formal Tenancy Agreement.
The legally binding lease contract between landlord and tenant. It covers all terms and conditions including rent, lease period, maintenance obligations, permitted use, subletting rights, renewal options, and termination provisions. Always have your lawyer review the TA before signing.
A tax payable to IRAS (Inland Revenue Authority of Singapore) on the execution of a lease. Calculated as 0.4% of the total rent for the lease period. For example, a 3-year lease at $30,000/month: $30,000 × 36 months × 0.4% = $4,320. Typically paid by the tenant. See our Associated Costs page for more details.
A clause giving the tenant the right (but not obligation) to extend the lease for an additional term at a pre-agreed rent or at prevailing market rent. Typically must be exercised 6–9 months before lease expiry by written notice. Having a renewal option protects you from being forced to relocate at lease end.