Working Space Rentals vs. Traditional Office Space: A Cost Comparison

Working space rentals have challenged the traditional model of office space as we know it. Businesses now have the option to choose between a traditional office space and a working space rental, each with its advantages and disadvantages. One of the key considerations in this decision-making process is the cost involved. Traditional offices require a significant upfront investment in furniture, infrastructure, and staff, whereas working space rentals offer a more flexible and affordable option, with businesses only paying for the time they use the space. In this article, we will compare the cost differences between traditional office spaces and working space rentals to help businesses make an informed decision about which option is best suited to their needs.

Traditional vs. Working Offices:
What’s The Difference?

Traditional Offices

Traditional offices are typically leased or purchased by a business and require a long-term commitment, usually of at least one year. These offices are designed specifically for the business, often with a customized layout and amenities to meet the company’s specific needs. Traditional offices also require a significant upfront investment in furniture, equipment, infrastructure, and ongoing maintenance costs.

What Does A Traditional Office Space Include?

Traditional office space is equipped with a wide variety of amenities and services to satisfy the requirements of a business, such as:

Furniture Acquisition

Businesses must purchase or lease furniture to equip their office space, which can be a significant upfront cost.

Amenities Installation 

Traditional offices require the installation of amenities such as telephones, internet, printers, and copiers. These items need to be purchased or leased and installed in the space, which adds to the overall cost.

Office Equipment Procurement

Traditional offices must have various office equipment, such as computers and other electronics. These items need to be purchased or leased and installed in the space, which adds to the overall cost.

Security Through IT Team

Businesses must also hire an IT team to ensure their data is secure. This is an additional expense that must be factored into the cost of traditional office space.

Reception Management and Cleaning Staff

Traditional offices often require reception staff to greet visitors and cleaning staff to maintain the office. This adds additional costs to traditional office spaces.

Separate Kitchen And Catering

Businesses may choose to provide a separate kitchen and catering service for employees, which can add to the overall cost of traditional office space.

Utilities Cost

Traditional offices also require businesses to pay for utilities such as electricity, water, and gas.

Working Space Rentals

Working space rentals offer a more flexible and affordable option for businesses. These spaces are rented short-term, often by the hour, day, or month. They come fully furnished, with amenities such as telephones, internet, printers, and copiers already in place. Working space rentals also come with trained staff responsible for the office maintenance, cleaning, and management, so businesses do not have to worry about these tasks themselves.

What Does A Working Space Offer?

A working space rental offers a range of amenities and benefits to businesses, including:

Payment Per Usage

Businesses only pay for the time they use the space, so no long-term commitment or upfront investment is required.

Fully Furnished Areas

Working spaces already have furniture, computers, and office equipment, so businesses don’t have to worry about buying or leasing these items.

Ready-to-Use Amenities

Working spaces come with ready-to-use amenities such as telephones, internet, printers, and copiers.

Electronics And Office Equipment

Businesses can access a variety of electronics and office equipment without having to purchase or lease them.

Trained Professional Staff

Working spaces come with trained professionals who handle maintenance, cleaning, and management tasks, so businesses don’t have to worry about these tasks themselves.

Onsite IT Services Or Upon Request

Working spaces offer onsite IT services for businesses, or they can request additional assistance as needed.

Pantry And Catering Supplies

Businesses can access pantry and catering supplies, so they don’t have to worry about stocking their own kitchen or hiring a separate catering service.

Choosing The Right Workspace Is Important

Choosing the proper workspace is something that should always be taken seriously! Not only does a productive and comfortable working environment directly impact employee morale and productivity levels, but it can also make a huge difference in streamlining workflow processes. 

Benefits Of Working Space Rentals

Working space rentals are becoming increasingly popular for businesses and offer a variety of advantages, including:

Flexibility

Month-to-month leases

Working space rentals typically offer month-to-month leases, providing businesses with the flexibility to rent space for as little as needed. 

Short-term commitments

Businesses can rent working space for short-term commitments, allowing them to scale up or down as required by their changing needs.

Option to scale up or down

Working space rentals allow businesses to scale up or down quickly without being locked into a long-term lease commitment.

Cost savings

Lower overhead costs

Working space rentals can be a cost-effective option compared to traditional office space. Businesses only pay for the needed space, reducing overhead costs such as rent, utilities, and maintenance.

No long-term lease commitments

Working space rentals offer businesses the option to rent space without being locked into a long-term lease commitment.

Access to shared amenities

Working space rentals provide access to shared amenities such as meeting rooms, kitchens, and reception areas, reducing the need for businesses to invest in expensive infrastructure and equipment.

Drawbacks of traditional office space

Long-term lease commitments

Traditional office spaces typically require long-term lease commitments, which can be a disadvantage for businesses that require flexibility.

Higher overhead costs

Traditional office spaces often have higher overhead costs, such as rent, utilities, maintenance, and infrastructure.

Limited flexibility

Traditional office spaces may not provide the flexibility that some businesses require to grow and adapt to changing market conditions.

Working Space Rentals vs. Traditional Office Space:
A Cost Comparison

Average Monthly Fees For Leasing vs. Flexible Spaces

• Working space rentals typically offer flexible lease agreements, allowing businesses to rent space monthly or daily and pay only for the space they need and use.
• Traditional office spaces require long-term lease agreements, ranging from 1-10 years or more, and businesses are typically required to pay fixed monthly rental fees.

Rent And Overhead Costs

• Rent costs for traditional office spaces are typically higher than those of working space rentals due to the more extended lease agreements and the larger office space size.
• Working space rentals are often more cost-effective because businesses pay only for the space they need and use, reducing overhead costs such as utilities, maintenance, and equipment.

Comparison Of Amenities And Services

• Traditional office spaces may provide exclusive access to amenities such as gyms, private kitchens, and cafes, but these amenities can add up to the monthly rent and require additional expenses.
• Working space rentals offer shared amenities such as conference rooms, kitchens, and reception areas, reducing the need for businesses to invest in expensive infrastructure and equipment.

Additional And Hidden Costs

• Traditional office spaces may have additional costs, such as parking, building fees, and security costs, which are often not included in the monthly rent and can add up to the overall cost.
• Working space rentals may have additional costs, such as printing, copying, and mail handling, which are typically charged separately from the rental fees.

Monthly cost breakdown between the two types of spaces

Traditional office spaces usually require long-term lease agreements, and businesses are typically required to pay fixed monthly rental fees, which can range from $25 to $60 per square foot. This means that companies must commit to paying for the space they need for an extended period, which can be expensive, especially for startups and small businesses. Traditional office spaces also come with additional costs, such as utility bills, maintenance, and security, which can further increase monthly expenses. On the other hand, working space rentals offer flexible lease agreements, allowing businesses to rent space on a monthly or daily basis and pay only for the space they need and use, which can range from $150 to $800 per person per month, depending on the location and amenities. This makes it easier for businesses to manage their monthly expenses, especially for those still growing or uncertain about their future needs.

Where do you save money?

When deciding between a working space rental or a traditional office, contemplate your business’s size, budget, future potentiality, and the desired degree of flexibility and quality of the amenities. While small startups with rapid growth may prefer the convenience of flexible leases found in working space rentals, if you need a long-term commitment to larger offices without extra costs, go for traditional options.

What’s right for you?

When considering the cost, there are only so many choices between working space rentals and traditional office space. Depending on the size of the company or organization, renting space might provide greater flexibility and can save money overall. At the same time, larger enterprises may benefit from a tailored working environment they own and control. Ultimately, it is up to each business or organization to weigh the benefits of both options to determine their preference.