How Much Does it Cost to Rent a Coworking Space?

With the high costs of leasing traditional office space, alternative options are starting to spring up all over the place, including coworking spaces. But just how much does it cost to rent a coworking space? To give you a ballpark figure, the average price range for base-level community membership in the United States is about $260 to $430 a month.  Additionally, the average price to use a flexible desk during business hours is $195. If you’re wondering what some or all of that means, we’ve got you covered with this guide to how much it costs to rent a coworking space!

Why Rent a Coworking Space?

Some people work at home, some commute to an office, but more and more people are choosing to rent coworking space. In the U.S., more than 540,000 people worked from these flexible spaces in 2017, and that figure is expected to double by next year. But why are coworking spaces such a popular choice? 

One main reason is that they offer an excellent opportunity for entrepreneurs or freelancers who need a flexible schedule – or they simply want the social environment of an office without all the commitment and hassle of a long-term contract. 

Another factor is cost, and while coworking costs vary from business to business and city to city, you can anticipate paying comparatively low fees for a dedicated shared space.  

Easy Mistakes to Make when Comparing Coworking Space Costs

You can do your due diligence and research the various coworking space options available to you, including how much their space rental costs, and still make some mistakes. 

For example, you can get all caught up in what other spaces are charging for rent when you should be looking at multiple factors that will affect how much the space will cost your company altogether. That said, make sure you do not fall into any of these common traps when trying to compare the costs:

• Rent is the deciding factor: Rent is the top expense in any kind of business, but the problem arises when it becomes the only decider. You need to compare ALL costs, not just the rent. When you expect the best location, you generally need to pay more, and you rarely find any at a low cost. 

An alternative for this is coworking spaces. You get all the features at a very affordable price, including an advantageous location in NYC. The flexibility of coworking spaces can also allow you to choose your workspace according to team size.

• Not considering what you use: You may think all coworking spaces are pretty much the same, but this is far from true! Once again, it comes down to knowing your needs; maybe a certain location works better for you or perhaps there’s something that makes one place stand out
• Just looking at square footage: Another mistake people often make is simply looking at square footage and making a decision from there. However, if your employees only need a certain number of desks or tables during the day, then coworking options would be an advantage to seriously consider. 
• Only considering the desk space: Companies utilize the office desk to its utmost, but they often forget about tasks away from the desk like those used for meeting rooms, copy machines or the refreshment area. These amenities are necessary and can treat employees and impress clients. For achieving these requirements, a fully equipped and dedicated space is needed. 
• Not considering the environment: When working with office space providers, any coworking space should have a positive atmosphere and be a source of comfort for employees. One of the most important aspects to look for are external factors such as noise and temperature levels, both being equally important in order to create a perfect working space.

Average Coworking Space Costs

At this point, it is important to mention that a coworking space of any sort should not be too expensive when compared to a conventional office in a centrally located building. Although the price per square foot might vary depending on location and other factors, an average value can give you a good idea about how much you will need to invest in order for your business or team to work successfully from such an office. Read on, and we’ll cover this in more detail.

Different Coworking Space Pricing Based on Desk Type

The price of a coworking space membership is calculated differently depending on the type of desk you choose. For example, the average monthly cost for a dedicated desk in an open-plan office ranges from $300 to $400 per month across different cities; whereas this number can be as low as $200 in some areas or as high as $700 for one in Lexington Ave, NYC.

How Much Does it Cost to Rent a NYC Coworking Space?

When looking at how much it costs to rent NYC coworking spaces, it’s good to see how the cost/per desk is typically calculated.

The Formula

Take the cost of space and then multiply it by 3 to get the cost of the space and a little extra. Then divide that by (# of SF / 100 = number of desks) to get the cost per desk. For some cities, like NYC, office space costs $4 per SF/month, so from the calculations, you can expect monthly desk rates to look like $600 and then some in The Big Apple, which is pretty much a good deal. 

How Much Will a Permanent Desk Cost in NYC?

Most NYC companies looking to scale up or downsize typically have permanent desks in mind. While the option is more costly than hot desk options, you’ll get the advantage of a shared office arrangement with a permanence for your personnel. As with other coworking office spaces in NYC, the charge for a permanent desk will vary. 

For example, a no-frills desk with basic services and facilities in a suburban location could run around $650 per month. However, a midtown Manhattan space with a strong brand identity and extensive services and facilities can cost upwards of $750 per month. The average rate tends to hover at around $690 per month for a centralized location with various on-site facilities and services.

Questions to Ask Potential Coworking Space Providers

For good preparation and planning, it’s helpful to come up with a checklist of questions to ask the coworking space providers you are considering. Ask things such as: 

1. What do you charge for daily drop-in usage? 
2. Do I have to commit for a year or can I cancel at any time with a 30 days’ notice?
3. What type of memberships do you offer: Monthly or flex plans?
4. What are your monthly rates? Do they include taxes and fees? 
5. Are utilities (phone, internet) covered in the cost of rent or billed separately to each user? 
6. How much do you charge per desk?
7. Where is the space located and what amenities are nearby (public transportation, coffee shop, free parking)?
8. What firms will we be sharing the space with?
9. Is there a conference room available? What’s included and what’s the cost to reserve it?
10. What makes the space unique? Can I take it for a test drive before committing?
11. Will we get listings in business directories or something similar? 
12. Do we get a kitchen or refreshment center?
13. Can you tell me about the WIFI speed and its reliability? Do you have a backup if the WIFI goes down?
14. Do you have any signup bonuses or other incentives? 

Is Coworking Space Cheaper?

When looking at desks or a private office, coworking looks to be far less expensive than leasing a traditional office space. For instance, start-ups with less than 12 employees can reap around $2,700 in monthly savings by using a coworking space instead of leasing an office. Furthermore, there’s typically no need to concern yourself with administrative tasks, utilities, down payments, etc., with the coworking space option.

Private Desk Space: Pros and Cons 

Renting private desk space is, by far, the best option for companies. Not only does this type of desk have a much quieter environment, but it’s also private. It’ll add to individual productivity and reduce interruptions. In fact, 58 percent of office workers say that they need a quieter workspace. Another pro is that private desk space provides for a natural hierarchy for your organization. 

Of course, there are some cons to this office structure. For example, there will be less interaction, which could potentially lead to less innovation. It’s also possible for workers to become more isolated from each other. However, if you put the pros and cons side by side, you’ll see that there’s much more to gain than to lose. 

Open Desk Space: Pros and Cons 

Open desk spaces can be a bit cheaper. They can also lead to an increase in cross-team collaboration. On the downside, they’re much louder. And, in a surprising turn of events, Harvard Business Review found that they actually reduce employee collaboration by as much as 70 percent. Even worse, they often increase employee drama. 

As you can see, there are some benefits to the open space environment, but they’re not worth the savings you’ll reap.    

Safe, Reliable and Comfortable Coworking Spaces in NYC

As you can see, a shared workspace is an accessible option for any business. We know it’s a lot to take in and an important decision. But whether you’re a start-up, just getting off the ground, or a freelancer looking for a change of scenery, Corporate Suites can work with you to find a safe, reliable, and comfortable furnished office space in NYC without the sky-high rents. If you would like to know more about your options and pricing, please give us a call at (866) 462-8863 to talk to one of our team members.