The Straits Trading Company (STC) is leasing office space at 18 Cross Street, China Square Central at $8 to $10 per square foot. The six-month lease at the Grade A office tower is aimed at companies in need of transitional office.
Spanning across the 7th to 10th floors of the 15-storey building, the gross leasable space available for short-term tenancy is estimated at 50,000 sq. ft.
STC executive vice-president Eric Teng said that short-term lease is beneficial to companies that won’t commit to long-term lease until the rent drops further. The short-term arrangement is also aimed at companies that are planning to relocate their businesses but are unable to negotiate short-term lease extension with their current landlords. In addition, short-term lease also provides temporary space for companies that are seeking to protect their employees from H1N1 virus infection. STC also hopes that short-term leases will lead to long-term contracts given its experience of working in China Square Central. Short-term tenants can bypass refitting or renovation expenses until they commit to long-term lease in which these costs are added on their monthly rental.
Agnes Tay, director of business space at Knight Frank, said that the marketing strategy of STC is creative, citing its attractive renewal packages aimed at short-term tenants.
According to STC, almost 75 percent of the office space at 18 Cross Street is already occupied. STC had owned the 18, 20 and 22 Cross Street before entering a sale and leaseback deal with Frasers Commercial Trust, previously known as Allco Commercial REIT. At present, STC has a master lease on the said properties, which will expire in 2012.