2. Considering the other Office Alternative: Co-working space
If a commercial office space does not work for your business and your team is relatively small, you may want to evaluate the co-working or flexible space option as the other office alternative.
Office spaces and co-working spaces have their own benefits. In your own office, you can handle business in a private setting, you can impress clientele, and attract talent with your own unique corporate branding, culture and setting.
In a co-working space, you have the flexibility of shorter lease term that will satisfy your smaller team with less to worry about utilities, office maintenance and up-keeping. In co-working space, the rental is usually by headcount/ desk with flexible lease period like a few months while permanent office space rent is chargeable by per square footage with lease period at least 2 – 3years.
Permanent Office Rental Calculation Method: Rent Per Square Foot
For instance, a 2,500 square foot permanent office space is quoted a monthly rent of $11.50 per square foot. The monthly rent is therefore 2,500 X $11.50 = $28,750. Extra cost may include maintenance-fee, utilities, cleaning.
Flexible/ Co-working Space Rental Calculation Method: Rent Per Headcount
For instance, a private room in flexible or co-working space with 25 desks is quoted a monthly rent of $600 per headcount. The monthly rent is therefore 25 X $600 = $15,000. You can assess the general shared spaces and amenities but the other costs for printing and booking of meeting rooms will be chargeable on a per-use basis.