How Much Does Coworking Cost?
If you’re thinking about committing to a coworking space, the first question likely to be on your mind is how much does it cost? In this article, we cover everything professionals need to know about how much their coworking investment should cost, including:
Average Cost of Coworking Spaces
Every coworking space is a little bit different, so it makes sense that pricing for each facility varies. In general, professionals can expect to pay the following depending on the type of space they choose:
- Private Office: $350 – $800 per month
- Floating Desk: $50 – $350 per month
- Office Suite: $350 – $2,300 per month
It’s important to note that these are just the averages reported for each office type. Always conduct your own research on the specific space you have in mind before assuming what the price will be.
Factors That Affect Pricing
As you weigh your coworking options, you may notice differences in their pricing structure. There are several factors that can influence pricing, including:
- Location: Coworking rentals typically are commensurate with the cost of living for the town in which they are located. That said, if you choose a coworking space in a metro area, the rental cost is likely to be higher than those that are located in the suburbs.
- Terms: Typical coworking agreements range from day passes all the way up to two-year agreement terms. Depending on how long your term is, the cost may be higher or lower.
- Amenities: Some coworking space amenities might drive up the cost more than others. For example, having a business listing in the reception area might cost an extra fee while high-speed internet is included in the price for all packages.
- Services: Certain services may also increase the cost of your coworking space. Security and 24-hour surveillance, for instance, could impact the overall price of a space.
Coworking vs. Office Space Rentals
Many professionals are faced with the dilemma of choosing between a coworking space or an office space rental. When finding the right solution for your needs, it’s important to consider:
- Rent: Compare the price difference between renting a coworking space and renting your own office space before committing to either solution.
- Utilities: Consider how much it would cost to use water, electricity, internet, and other utilities while renting your own office compared to how much you would use and pay for utilities in a coworking space.
- Size: Determine how much space you need for desks, meeting rooms, office machinery, and break room space. Coworking spaces might be a better option depending on your needs.
- Comfort: Keep in mind the type of atmosphere you’d like to have while working. Be sure to consider external factors such as noise and temperature levels. If regular visitors and general chatter are bothersome to you while working, coworking spaces might not be the right choice for your needs.
Are Coworking Spaces Cheaper than Office Leases?
Compared to the cost of renting an office space, coworking seems to be a far less expensive option. Startups with less than 12 employees save approximately $2,700 in monthly expenses simply by using a coworking space instead of leasing an office. These savings mostly stem from the fact that professionals don’t need to worry about utilities, cleaning, and other administrative tasks with a coworking solution.
While coworking spaces might be more affordable than leasing an office, it’s important to understand exactly what is and is not included in your service agreement. Otherwise, you could get stuck in an agreement that doesn’t suit your professional needs.
Best Questions to Ask to Get the Most Out of Your Coworking Experience
Before making a commitment to a specific coworking space, it’s important to ask plenty of questions so you can get the most out of your experience. While you take a tour of your chosen facility, consider asking questions like:
- How long are your membership agreements?
- Can I cancel at any time?
- What type of membership options do you have available?
- What are your monthly rates?
- Are taxes and amenity fees included in your membership pricing?
- Are utilities covered in the cost of rent, or are they billed separately?
- How much do you charge for designated desks?
- What off-site amenities do you have available nearby?
- What other businesses will be sharing the space with me?
- Are there conference rooms available, and does it cost extra to reserve them?
- What unique amenities does the space have to offer?
- Can I do a trial run before making a commitment?
- Does the space offer listings in business directories? If so, how much does it cost?
- Is there a kitchen or refreshment center on site?
- What internet provider does the space use and how fast/reliable is the Wi-Fi?
- Are there backups available if the Wi-Fi goes down?
- Does the space offer any signup bonuses or similar incentives?
- What’s the charge for a drop-in visit?
Depending on the answers you receive, a coworking space might be the perfect fit for your organization. Only by doing thorough research and asking questions will you be able to develop a firm understanding of the coworking environment. Trust your instincts, know your needs, and field your options before committing to a space.
Are Coworking Spaces Cheaper than Office Leases?
Compared to the cost of renting an office space, coworking seems to be a far less expensive option. Startups with less than 12 employees save approximately $2,700 in monthly expenses simply by using a coworking space instead of leasing an office. These savings mostly stem from the fact that professionals don’t need to worry about utilities, cleaning, and other administrative tasks with a coworking solution.
While coworking spaces might be more affordable than leasing an office, it’s important to understand exactly what is and is not included in your service agreement. Otherwise, you could get stuck in an agreement that doesn’t suit your professional needs.
