Coworking Space Costs & Average Membership Pricing
- Coworking spaces are a popular choice for companies of all sizes and shapes because they offer flexibility. The spaces can be customized to meet the specific needs of an enterprise, but that flexibility also extends to pricing and agreement terms.
We have created a short but informative guide to help you make informed decisions about your next workspace. It includes information on average membership pricing, costs of coworking spaces, and what they are like compared to traditional office leases. We will be covering a variety of topics and answering your questions, including:
- Costs of coworking space compared to traditional office costs
- Pricing structures and fees for coworking
- Coworking pricing varies based on location, amenities, and other factors.
- In major markets, average coworking costs per person
- Is it worth the cost for your team?
- These insights will help you gain a better understanding of the pricing options so that your coworking space can be a strong point for your team, operations, future, and future.There are differences between traditional office costs and coworking costs
Coworking’s simplicity in pricing is one of its most attractive features, especially when compared to traditional office leases. The length of an agreement is the most important factor in determining the price structure for coworking. Coworking service agreements typically last between six and twelve months. This is quite different than a traditional lease. In Manhattan, a term as long as ten years is still acceptable.If you are new to coworking or just starting to explore the options, you may not be familiar with some of the differences between flexible space agreements, and traditional leases.
- Traditional leases are for tenants only. Tenants must furnish the space. Fully furnished coworking spaces are available.
- Many coworking operators will work with companies to build custom builds – privacy features, moving walls, and branding elements, etc. – without the need for complex improvements that are usually included in traditional leases.
- Coworking agreements offer wifi, equipped kitchens, and other services/amenities not available in traditional leases.
- Traditional space will have you working as a staff member for an office manager, assigning workers to basic housecleaning tasks, or hiring a cleaner. All of these services are provided by your coworking membership.
- Traditional leases, which are usually longer-term agreements come with the option to sublet or release the space. You would leave the space if you had shorter coworking agreements.
- Coworking agreements will include common area maintenance as part of the contract. A traditional lease means you pay your share of the building’s maintenance costs. This includes utilities and capital improvements. These are variable costs so paying your share of the overall operating costs can surprise you from year to year. You don’t know what rent you will be paying for the next twelve months.
- Coworking agreements do not have the same termination penalties as traditional leases.
- Not-So-Hidden Coworking Costs
As amenities and fees may vary between locations and operators, it is a good idea to be clear about what is included and excluded from your coworking service agreement. Some operators offer free coffee from the onsite cafe, while others require you to purchase your own. This is true for services such as printing and conference room time. Some providers offer virtual office and receptionist services while others do not.
Although this is becoming more common, the majority of operators don’t offer parking spaces as part of an agreement. Additional costs may include additional network security for companies working with sensitive data, IP, and per-seat setup fees. These are the items that you should bring up when you tour your coworking space. This will ensure you understand what is included in your service agreement.
Average Cost of Coworking Space
Coworking offers everything, from dedicated desks and fractional seats to private office space and custom-built workspaces. It also provides desk space and office space solutions for freelancers, entrepreneurs, large corporations, and global conglomerates. Finding the right flexible space solution for your team and goals is key.
Pricing in coworking spaces will not only be determined by the space type, but also other factors such as:
- Term of the agreement
- Services available
It is important to remember that these average coworking space prices are only averages. It is important to find the best price points for your desired areas by using the most current and relevant information.
Office suites can be a mix of private offices, meeting rooms, and shared space. However, their average cost is very similar to private office space. There is a correlation between square footage and price. However, office suites typically house more employees than private ones.
Office suite prices are lower than private offices because of the greater number of employees per square footage. This is despite the fact that they have more specialized areas and larger office suites. As an example, traditional office space costs between $250 and $500 per month. However, these are typically associated with significant upfront and ongoing expenses that coworking does not require.
Average Prices for Coworking in Major Markets
We mentioned that the cost per month to rent a coworking space is influenced by where you live. Comparing costs and economic benefits between two very different markets, Manhattan vs. Salt Lake City, for example, is very apples-to-oranges.
We wanted to show you the average cost per seat for coworking in the largest markets. Instead of relying solely on static and outdated information, the following data has been culled from our search map. It’s the most accurate, up-to-date, relevant, and current pricing information in the market.
Average Coworking Costs per Person, Top Markets, Q1, 2020
Is coworking worth it for your organization?
Although coworking may not be the right fit for all organizations, considering the rapid growth and evolution of the flexible realty industry, it should be considered in your search. Coworking has become an integral part of every company’s operational puzzle, from small business owners and remote workers to Fortune 500 executives, due to its attractive amenities and perks.
We recommend that you do your research and have a solid understanding of the coworking environment to determine if it is a good fit. There’s a good chance that it will soon be.
This post was written by Tara Kintz. Tara is a director at https://www.signatureworkspace.com. Signature Workspace, owned and operated by Cantor Fund Management, offers services and amenities such as private offices, flex space, co-working space, virtual offices, meeting/conference rooms, and more.