The sharing economy has deeply impacted workplaces and how business owners and individuals choose to office. Coworking, Shared Office Space, and Flexible Office are terms used interchangeably to describe workspace that is service-led and flexible. These offices deliver everything a company or individual needs – office space, Wi-Fi, equipped conference rooms, furniture, coffee, community manager, copy/print/scan, etc. – in an all-inclusive package.
This week, a tech company with several remote locations, contacted me about the LIFT Office to house their employees. With close to 10 remote employees now, and the need to expand to approximately 30 over the next one to two years, the corporate headquarters is weighing their office options.
This tech company uses coworking spaces in other cities and understands the ease of a turnkey shared office space. They’ve enjoyed the flexibility of a per-person per-month office which includes internet access and furniture. Shared space also enables this company to expand and contract the number of employees it houses at each location.
For those evaluating what type of office space is right for your company, I’ve outlined a comparison of traditional office versus shared space office expenses. I’ve used a common scenario where a small company or a remote office with 10 employees can evaluate what to expect to pay at the end of 24 months.
Traditional Office Annual Cost
Based on the required space for 10 employees at an average ratio of one employee per two hundred feet results in a need for 2,000 square feet, below is the annual spend.
Total for the initial 12 months for a 10-person company is $50,000 rent + $4500 internet + $3000 amenities + $8,150 Office furniture + $3,260 maintenance + $4,300 utilities + $2,740 cleaning + $9656 onsite manager = $85,606/first year
Total for the second 12 months for 10-person company is $50,000 rent + $4500 internet + $3000 amenities + $3,260 maintenance + $4,300 utilities + $2,740 cleaning + $9656 onsite manager = $77,456/second year
Cost for 24 months for 10-person company = $163,062
Shared Office / Coworking Annual Cost
Per person per month office space at LIFT Office or similar shared space office:
$475 per person per month for 10 people is $4750/month = $57,000/year
This cost per person includes:
- Dedicated Desk
- Shared Conference Room Access
- Utilities, Maintenance and Cleaning Service
- Coffee, Tea and Healthy Snacks
- Print/Scan/Copy Access
Total for 24 months for a 20-person office = $114,000
The Bottom Line
In this comparison, the coworking office is 30% more cost effective ($114,000/$163,068) when compared to the traditional office space.
In addition to cost, you can see from the compared list of expenses, using shared space for your office is easy.
Shared space offices have created an entire new way for businesses to evaluate the best way to manage their office needs. It not only provides a cost effective alternative, but it creates flexibility for rapidly changing technology companies and the ability to focus on business – not the building where you conduct your business.
For established companies with a fixed number of employees over an extended time, traditional office space is still a great option to consider. But for those companies who prefer flexibility and want to focus and invest their manpower in business growth, shared office space is not only a cost-effective option – it is a better business decision.
About LIFT Office
The LIFT Office is a coworking/flex office/meeting space in the center of DFW in Grapevine, Texas just 3 miles from the DFW Airport. The LIFT Office is a dynamic community of influencers, entrepreneurs, independent professionals, consultants, and freelancers. Learn more at https://theliftoffice.com/